1. All of the following accounts are impliedly contained in the account Construction in Progress except: A. Costs incurred to date B. Contract Revenue to date C. Gross Profit to date D. Progress Billings to date 2. S1: Zero Profit Method in revenue recognition principle recognizes income upon the completion a construction contractS2: A contract asset exists when Contract revenue to date is less than progress billings to date. A. Both are true B. Both are false C. S1 True D. S2 True
1. All of the following accounts are impliedly contained in the account Construction in Progress except: A. Costs incurred to date B. Contract Revenue to date C. Gross Profit to date D. Progress Billings to date 2. S1: Zero Profit Method in revenue recognition principle recognizes income upon the completion a construction contractS2: A contract asset exists when Contract revenue to date is less than progress billings to date. A. Both are true B. Both are false C. S1 True D. S2 True
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. All of the following accounts are impliedly contained in the account Construction in Progress except:
A. Costs incurred to date
B. Contract Revenue to date
C. Gross Profit to date
D. Progress Billings to date
2. S1: Zero Profit Method in revenue recognition principle recognizes income upon the completion a construction contractS2: A contract asset exists when Contract revenue to date is less than progress billings to date.
A. Both are true
B. Both are false
C. S1 True
D. S2 True
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