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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Distinguish between the installment sales method and the cost recovery method of accounting for installmentsales.
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Demonstrate revenue recognition for long-term contracts, both at a point intime when the contract is completed and over a period of time according to thepercentage completed.
Distinguish between the stand-alone and the incremental revenue-allocation methods.
What are the two methods of revenue recognition for long-term construction projects?
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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.”
For assets acquired on credit or by installment, the cost or fair value is equal to: A. cash purchase priceB. invoice priceC. installment priceD. list price
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.
The concept that states assets should be recorded at their original cost is known as the: a) Matching Principle b) Cost Principle c) Consistency Principle d) Revenue Recognition Principle
(e) What was the amount of restoration cost recognised in profit or loss during the current reporting period?

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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