Long-Term Construction-Type and Production-Type Contracts Flashcards
1
Q
percentage-of-completion method is recommended for long-term construction contracts when
A
Collection is assured and the estimates of progress toward the completion are reasonably reliable
2
Q
completed contract method
A
total revenue is recognized in the period in which the contract is COMPLETED
net loss is recognized in earliest period
use when either collection is not assured or progress toward completion cannot be measured reliably
3
Q
Progress billings
A
represent the amounts that the customer has been billed. Over the term of the contract, the total of progress billings will be equal to the total contract price.
