Give me answer this Accounting MCQ The installment method of revenuerecognition is primarily used for:a) Service contractsb) Construction projectsc) Sales with extended payment terms.d) Consignment sales

Explanation of Installment Method: The installment method is a specialized revenue recognition…

Answered: The installment method of revenue…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 18Q: What are the two methods of revenue recognition for long-term construction projects?

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Similar questions

Explain an example of long-term construction contracts qualify for revenue recognition over time.
What are the two methods of revenue recognition for long-term construction projects?
For long-term construction projects, the amount of “billings” is reported in the balance sheet by: Multiple Choice netting it against “construction in progress.” adding it to “construction in progress.” adding it to “accounts receivable.” netting it against “accounts receivable.”
Which of the following is not an accepted basis for recognition of revenue?A. Passage of timeB. Completion of percentage of a projectC. Performance of serviceD. Upon signing of contract
1. When outcome of a construction contract is estimated reliably, contract revenue and contract costs associated with the construction contract should be recognized using * A. cost recovery method B. percentage of completion method C.gross profit method D.zero profit method.
A method of reporting income that is used when collection can be made over a relatively long periods of time with a strong possibility that full collection will not be made. Percentage of completion method Long-term construction contract method Installment method Deferred payment method
Revenue generally should be recognized Select one: when realized. when the performance obligation is satisfied. at the time of cash collection. at the end of production.
In accounting for a long-term construction contract using the percentage of completion method, the progress billings on contract account is a * A. noncurrent liability B. revenue account C. contra noncurrent liability D.contra current asset account
(a) Explain the difference between: Capital expenditure and revenue expenditure, giving an example of each. (b) Explain the difference between the receivables collection period and the payables payment period. Why is it generally preferable for the receivables collection period to be shorter than the payables payment period?
5. Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are accounted for by an SME as a. Outright expenses b. Capitalizable costs c. a or b d. a component of other comprehensive income
Describe the lessee's accounting for sale-leaseback transactions.
Match the following challenges in revenue recognition with their corresponding aspects: A. Determining appropriate recognition criteria B. Estimating the fair value of variable considerations C. Identifying and allocating revenue to each performance obligation D. Monitoring and reassessing estimates over time 1. Matching with A: • Option: 2. Matching with B: Option: 3. Matching with C: • Option: 4. Matching with D: Option: ● Options: A) Determining appropriate recognition criteria B) Estimating the fair value of variable considerations C) Identifying and allocating revenue to each performance obligation D) Monitoring and reassessing estimates over time Choose the correct combination: 1. A-B, B-C, C-D, D-A 2. A-C, B-D, C-A, D-B 3. A-D, B-C, C-A, D-B 4. A-B, B-D, C-A, D-C

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The installment method of revenue recognition is primarily used for: a) Service contracts b) Construction projects c) Sales with extended payment terms. d) Consignment sales