Revenue recognition on long-term construction projects, Biology

Assignment Help:

Q. Revenue Recognition on Long-term Construction Projects?

Revenue Recognition on Long-term Construction Projects Company identifies revenue from a long-term construction project under two different methods (a) the completed-contract method or (b) the percentage-of-completion method. The completed-contract method doesn't recognize any revenue until the project is completed. In that period they make out all revenue even though the contract may have required three years to complete. Consequently the completed-contract method recognizes revenues at the time of sale as is true for most sales transactions. Companies hold costs incurred on the project forward in an inventory account (Construction in Process) and charge them to expense in the period in which the revenue is recognized. Some accountants squabble that waiting so long to recognize any revenue is unreasonable. They believe that for the reason that revenue-producing activities have been performed during each year of construction revenue must be recognized in each year of construction even if estimates are needed.


Related Discussions:- Revenue recognition on long-term construction projects

#Types of Blastula, Give a detailed description of stereoblastula, please ?...

Give a detailed description of stereoblastula, please ?#

Recovery of by-products: coal, Recovery of tar: the coke oven gas coming o...

Recovery of tar: the coke oven gas coming out from ovens is passed through a tower where liquid ammonia is sprayed. The tar and dust are removed and then recovered. Recover of

Define the visual accommodation, Q. What is visual accommodation? Visua...

Q. What is visual accommodation? Visual accommodation is the phenomenon of varying the curvature of the crystalline lens to make possible the difference of its refractivity to

Testis of non-mammalian vertebrates, Normal 0 false false f...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Human respiratory system - larynx, LARYN X - Study of larynx is kno...

LARYN X - Study of larynx is known as Laryngeology. In man it is more prominent than woman known as Adam's apple. It is sound producing organ. At its base trachea presen

Which represents the least potential electromotive force, In a neuron with ...

In a neuron with a resting potential of -65 mV, the distribution of which ion across the neuronal membrane represents the LEAST potential electromotive force (EMF)? A. Potassium

Explain cori cycle , Under the limiting oxygen conditions experienced in ...

Under the limiting oxygen conditions experienced in by vigorous exercise, the configuration of NADH by glycolysis exceeds the ability of the respiratory chain to oxidize it back to

Nervous system and sense organs, Nervous System and Sense Organs The n...

Nervous System and Sense Organs The non-chordates also perform a variety of activities such as feeding, digestion, locomotion etc. For this aim, they have corresponding organs

Infructescences- pseudofruits and parthenocarpic fruits, What are the infru...

What are the infructescences, pseudofruits and parthenocarpic fruits? The Infructescences are aggregated fruits formed from inflorescences, aggregated flowers. Grape clusters a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd