Asked by Luisa Zarzosa on May 22, 2024
Verified
An excess of Construction in Progress over Partial Billings for long-term contracts accounted for on the percentage-of-completion method should be shown as a
A) current asset
B) current liability
C) long-term asset
D) long-term liability
Construction in Progress
An accounting term for the financial balance of ongoing, unfinished construction projects, which is a non-depreciable asset on the balance sheet until the project is completed.
Partial Billings
Invoices sent to clients or customers for a portion of the work completed or products delivered, commonly used in long-term projects.
Current Liability
An entity's financial liabilities that must be settled with lenders within a twelve-month period.
- Understand the accounting treatment for excess or deficit of Construction in Progress over Partial Billings.
Verified Answer
Learning Objectives
- Understand the accounting treatment for excess or deficit of Construction in Progress over Partial Billings.
Related questions
All of the Following Would Be Reported Retrospectively by Restating ...
The Installment Sales Method Recognizes Revenue and Income Proportionately as ...
Deferred Gross Profit on Installment Sales Is Generally Treated as ...
Bruce's Bouquets Rents a Small Shop Located in the Outskirts ...
Capital Expenditures Would Include ...