Solve The percentage of completion method isprimarily used in?a) Long-term construction contractsb) Service industriesc) Retail salesd) Manufacturing

Explanation of Percentage of Completion Method: This is an accounting method used to recognize…

Answered: The percentage of completion method is…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 3Q

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The percentage of completion method is primarily used in _? (a) Manufacturing (b) Service industries (c) Retail sales (d) Long-term construction contracts
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.
Which one of the following accounts is an asset similar to work-in-process inventory? Group of answer choices Construction in Progress Cost of Construction Billings in Excess of Cost Revenue from Long-Term Contracts
Which of the following costs shall from part of contract costs of long-term construction contract? a. General administration costs for which reimbursement is not specified in the contract b. Research and development costs for which reimbursement is not specified in the contract c. Construction overheads including costs such as the preparation and processing of construction personnel payroll. d. Selling costs such as broker’s commission
#14 How should the balances of Progress Billings and Construction in Process be shown at reporting dates prior to the completion of a long-term contract? Question 14 options: a Net balance, as income from construction if credit balance, and loss from construction if debit balance b Progress Billings as deferred income, Construction in Progress as a deferred expense c Progress Billings as income, Construction in Process as inventory d Net balance, as a current asset if debit balance, and current liability if credit balance
In any construction project, the total bill to the owner must equal a. Gross profit b. Net profit c. Project contract amount d. General overhead
The income statement of a service-sector firm reports: both period and inventoriable costs a O inventoriable costs only .b O period costs only .R period and inventoriable costs but at different times; the reporting varies dO
Which of the following is not a fixed cost?a. Direct materialsb. Depreciationc. Lease charged. Property taxes
Which of the following applies conservatism to the financial statements of a full cost company? Group of answer choices A. Use of the entire country as the cost center B. Full cost ceiling test C. Capitalization of exploratory dry holes D. Exclusion of costs from the amortization pool
Property taxes on a company’s factory building would be classified as a(n): a. Product cost b. Opportunity cost c. Period cost d. Variable cost e. Administrative cost f. Selling cost
Assuming the requirements for recognizing revenue over time are met, the profit to be recognized in any year is based on the completion ratio of: incurred contract costs divided by estimated total contract costs. incurred contract costs multiplied by estimated total contract costs. estimated total contract costs divided by incurred contract costs. estimated total contract costs multiplied by incurred contract costs.
Correct Answer for this. General Account

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The percentage of completion method is primarily used in ? a) Long-term construction contracts b) Service industries c) Retail sales d) Manufacturing