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The calculation of the income recognized in the third year of a 5-year construction contract accounted for using the percentage-of-completion method includes the ratio of
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A company appropriately uses the completed-contract method to account for a long-term construction contract. Revenue is recognized when progress billings are
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Revenue Recognition

QuestionAnswer
The calculation of the income recognized in the third year of a 5-year construction contract accounted for using the percentage-of-completion method includes the ratio of D. Total costs incurred to date to total estimated costs.
A company appropriately uses the completed-contract method to account for a long-term construction contract. Revenue is recognized when progress billings are D. No No
Haft Construction Co. has consistently used the percentage-of-completion method. D. $150,000
Pell Co.’s construction jobs (described below) commenced during the year just ended. A. ($20,000)
State Co. recognizes construction revenue and expenses using the percentage-of-completion method. A. $50,000
A building contractor has a fixed-price contract to construct a large building. B. As progress is made toward completion of the contract.
Which of the following is used in calculating the gross profit recognized in the fourth and final year of a contract accounted for by the percentage-of-completion method? A. Yes Yes
During Year 1, Mitchell Corp. started a construction job with a total contract price of $600,000. D. $120,000
Gow Constructors, Inc., has consistently used the percentage-of-completion method of recognizing gross profit. D. $600,000
POC Company accounts for a long-term construction contract using the percentage-of-completion method. B. A current liability of $20,000.
Lake Construction Company has consistently used the percentage-of-completion method of recognizing gross profit. B. $3,300,000
How should the balances of progress billings and construction in progress be shown at reporting dates prior to the completion of a long-term contract? C. Net, as a current asset if debit balance and current liability if credit balance.
A company used the percentage-of-completion method of accounting for a 4-year construction contract. GP Pre Recog & Prog Bill to Date C. Yes No
A company uses the percentage-of-completion method to account for a 4-year construction contract. Prog Bill & Collec on Prog Bill C. No No
During Year 1, Tidal Co. began construction on a project scheduled for completion in Year 3. D. Decrease Decrease
Kechara Corp. started a long-term construction project in Year 1. A. $350,000
Hansen Construction, Inc., has consistently used the percentage-of-completion method of recognizing gross profit. B. $100,000
A company uses the completed-contract method to account for a long-term construction contract. Revenue and gross profit are recognized when recorded progress billings B. No No
Long Corporation began construction work under a 3-year contract this year. B. $64,000
Fact Pattern: Data pertaining to Pell Co.’s construction jobs, which commenced during Year 1, are as follows: B. $20,000
A company uses the completed-contract method to account for a 4-year construction contract which is currently in its third year. Third Year Progress Billings A. Not third year third year
A company began work on a long-term construction contract in Year 1. The contract price was $3,000,000. D. $350,000
The contract price is $1,000. Under IFRS, what is the profit recognized in Year 2? C. $550
Paulson Company uses the percentage-of-completion method to account for long-term construction contracts. B. $70,000
Falton Co. had the following first-year amounts related to its $9,000,000 construction contract: A. $0
Frame construction company’s contract requires the construction of a bridge in 3 years. D. $150,000
Created by: melissaaaa
 

 



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