Define the term Contract Modifications.

Q: Define the term Approval of payment requests?

A: The payment is an amount of money paid by the customer to the seller in exchange of goods and…

Q: Define forward contract.

A: It is a form of derivative contract which is used as an agreement

Q: Explain the term Land Contracts?

A: Land contracts: A land contract is an arrangement of vendor financing. It is alike to a loan, but…

Q: Allocate a contract’s transaction price to multiple performance obligations.

A:

Q: Define Miscellaneous expense.

A: Step 1 Expense is the amount incurred by the organization to generate revenue. It is shown in the…

Q: Define the term End-of-Period Convention?

A: Cash flows refer to the amount of cash that is either invested or received by the company during the…

Q: Define contract assets.

A: Definition:   Assets: These are the resources owned and controlled by business and used to produce…

Q: Define Pledging.

A: When we talk about pledging in terms of accounting, it is to be noted that the word pledging is…

Q: Understand how variable consideration and other aspects of contracts affect the calculation and…

A: Variable consideration:  It refers to the amount of revenue that is to be recognized as per the…

Q: Define Temporary difference.

A: Definition:   Account: Account is the basic record that reports all changes in the value of…

Q: For what reasons should the percentage-of-completionmethod be used over the completed-contract…

A: Completed contract method: In this method the revenue and profit are recognized only after the…

Q: Define covenant

A: Answer: Covenant is a way to regulate the usage of property. This is an agreement made in the…

Q: How to Allocate the Transaction Price to Each Performance Obligation?

A: In revenue recognition , following steps are done- first of all we determine whether there is a…

Q: Define trademarks.

A:

Q: ontr

A: Definition of a Contract: A contract is a legally enforceable agreement. It might be a promise to do…

Q: Explain the term Voluntary Conveyance

A: Voluntary Conveyance: Voluntary conveyance is defined as an elective transmission of title from one…

Q: Explain the term Collateral.

A: Assets refer to those resources which have some economic value held by a corporation, individual or…

Q: Define the term contract assets.

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: Define underwritten arrangement

A: Underwritten arrangement is the type of arrangement between investment banker and company in which…

Q: How does a seller allocate a transaction price to a contract’s performance obligations?

A: Transaction price: Transaction price is the amount of consideration that is estimated by the company…

Q: arise by ratificatio

A: Agency by Ratification is defined as where someone approves or accepts of some one else's deeds on…

Q: . The following describe deal standards, except

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Define Long-term contract

A: Meaning of Contract: An agreement between two private parties that creates mutual legal obligations.…

Q: What is a performance obligation? Under what conditionsdoes a performance obligation exist?

A:

Q: What is indentures?

A: An indenture is a legal contract that states the advantages and commitments of two or more parties…

Q: Explain consignment arrangement with example.

A: Goods in transit: Goods in transit can be described as the inventories which are shipped by the…

Q: Explain restrictive covenant

A: Covenants are the obligation in a contract between persons to do or to not do certain actions.…

Q: What is a performance obligation?

A: Definition: Performance obligation: Performance obligation is a promise to transfer goods or…

Q: Illustrate The Underwriting Process?

A: Underwriting is a process by which investment banks generate funds for the organization.

Q: Define the term service revenue.

A: Revenues: Revenues are earnings from operations of a business. The operating activities are sale of…

Q: Define underwriting syndicate

A: An underwriting syndicate is headed by a bank known as the lead underwriter. It is a group of banks…

Q: Define Purchase commitments.

A: Purchase Commitments refer to the commitments or contract made by a company with its suppliers to…

Q: Define Statement of fi nancial condition

A: The financial statements of any business firm is prepared for telling the financial results of the…

Q: Explain how to allocate the transaction price to each performance obligation.

A: If a customer receives a discount for acquiring a bundle of goods or services, the entity should…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.