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

Major types of inheritances exceptions to mendel''s rules/, According to th...

According to the Mendel's law the phenotypical characteristics would be determined by pair of factors (alleles) that separate independently in gametes. What are the major types of

Taxonomy, Agroup of realated genera are classified as-?

Agroup of realated genera are classified as-?

Excretion, How will the urine concentration be affected if the henle''s loo...

How will the urine concentration be affected if the henle''s loop of a person is removed and his PCT is joined directly with DCT?

Define the cell structure and function, Cell structure and function All...

Cell structure and function All organisms, whether simple or complex, plants or animals. are composed of cells. For example, a bacterium or an amoeba is made up of just one cel

Cnidarians: obelia, why is obelia considered to be of special interest in Z...

why is obelia considered to be of special interest in Zoology as an animal showing an intermediate grade of organisation

Cerebral palsy, Cerebral Palsy Cerebral palsy is a non-progressive neu...

Cerebral Palsy Cerebral palsy is a non-progressive neuromuscular disorder characterised by disorder of strength, muscle control, posture or movement due to brain injury, befor

Define the role of protein and purines, Q. Define the Role of Protein and P...

Q. Define the Role of Protein and Purines? Cellular materials of plants, grams and legumes and animal glandular organ meats (liver, pancreas brain, kidneys) contain nucleoprote

Ventricular septal defect, A newborn baby with a patent foramen ovale or a ...

A newborn baby with a patent foramen ovale or a ventricular septal defect might be cyanotic (blue). Will a two-year-old with these defects also be cyanotic? Explain your answer.

Morphology of angiosperms, define inflorescence and explain in detail about...

define inflorescence and explain in detail about it''s types

What are the respective functions of phospholipids, Q. What are the respect...

Q. What are the respective functions of phospholipids, carbohydrates and proteins of the cell membrane? Membrane phospholipids have a structural function they form the bilipid

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