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

Procedure for estimation of vitamin c - colorimetric method, Define Procedu...

Define Procedure for estimation of vitamin c - colorimetric method? Carry out the experiment following the instructions given herewith: 1. Prepare a series of tubes for blan

Explain radiology, Radiology is a medical specialty that employs the use of...

Radiology is a medical specialty that employs the use of imaging to both diagnose and treat disease visualised within the human body. Radiologists use an array of imaging technolog

Angiotensin - vertebrates, Normal 0 false false false E...

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

What are differentiations of the cell membrane, In some types of cells, the...

In some types of cells, the cell membrane present differentiations that are essential for the specific functions of the cells. The major differentiations are the microvilli and the

What units are the nucleic acids constituted, Q. Of what units are the nucl...

Q. Of what units are the nucleic acids constituted? What are chemical entities that compose that unit? The Nucleic acids are formed by sequences of nucleotides. Nucleotides

Restricted lung diseases, Restricted Lung Diseases Restricted lung dis...

Restricted Lung Diseases Restricted lung disease are classified into the following: Parenchymal inflammation. This can be due to infection e.g. pneumonia acute bronchi

Angiosperm, What is morphological nature of angiosperm

What is morphological nature of angiosperm

Define some detrimental effects of fungi, Define some Detrimental Effects o...

Define some Detrimental Effects of Fungi? These cause diseases of animals and humans. These either cause superficial mycoses (infection of skin, hair and nails) or systemic

Why do roots of many swamp plants have a special morphology, Why do roots o...

Why do roots of many swamp plants have a special morphology? Swamp and marsh plants usually present supporting roots that ramify from portions of the stem above the ground help

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