Which of the following journal entries is not made in the first period of a long-term contract if the company cannot make reasonably dependable estimates of the progress toward satisfaction of the performance obligation? To record construction costs. To record partial billings. To record cash collections from the customer. To record gross profit.

Q: Based on the requirements and guidance of IFRS 15, one of the following is not considered part of…

A: Under the contract costing, there is an agreement made between two parties in respect of performing…

Q: Which of the following statements regarding the recognition of expenses related to long-term…

A: Recognition of expenses in accounting refers to the process of recording and reporting the costs…

Q: Demonstrate revenue recognition for long-term contracts, both at a point intime when the contract is…

A: Long term contracts usually qualify for revenue recognition over time. We recognise revenue over…

Q: Farhgate Inc. should recognize revenue when the performance obligation has been satisfied and when…

A: Farhgate Inc. should recognize revenue when the performance obligation has been satisfied and when…

Q: typically recognized as revenue: a. when billed if they are expected to be received within the…

A: As per concept of revenue recognition revenue is recognised only based on the type of activities…

Q: Choose the correct. How should material seasonal variations in revenue be reflected in interim…

A: Variance:   Variance refers to the difference level in the actual cost incurred and standard cost.…

Q: When is an estimated loss on a long-term contract recognized, both for contracts that recognize…

A: Revenue recognized point of long term contract: A long-term contract qualifies for revenue…

Q: An auditor is skeptical about the assertion on the salary expenses. He collected information on the…

A: An audit can be defined as an inspection of books of accounts of a company to check whether the…

Q: Revenue should be recognized over time when a performance obligation is satisfied over time. That…

A: Given statement is: Revenue should be recognized over time when a performance obligation is…

Q: consignor satisfies its performance obligation under consignment contract?

A: Consignment sales are sales made by the one person (consignee) on behalf of the other person…

Q: The accrual of restructuring costs creates obligations (liabilities) referred to as exit or disposal…

A: 1.

Q: Which of the following conditions would violate the revenue recognition principle? Revenue is…

A: Revenue: This is the income of a firm during an accounting period. The income is recognized as and…

Q: TRUE OR FALSE? Advertising and bonuses are reported in the interim period when incurred.

A: Financial statements are those statements which are prepared at the end of accounting period in…

Q: i. Define the term contract. ii. State the objectives of Contract costing Identify types of…

A: As per Bartleby policy, only the first three parts of the interlinked question are answered Contract…

Q: Revenue Recognization Question. What is the significant difference between the Contract-Based…

A: Revenue recognition is the accounting principle that outlines the conditions under which revenue…

Q: Identify the proper accounting for losses on long-term contracts.

A: Revenue recognition: Revenue recognition principle states that every business organization should…

Q: does a cancellation of a service affect the companys balance sheet or book value?

A: Cancellation of service affect the company's balance sheet or book value : Some of the contracts…

Q: t is generally agreed that sales revenue should only be ‘realized’ and so ‘recognized’ in the…

A: Accrual Basis of Accounting:Accrual Basis of accounting refers to the accounting, where the…

Q: If cash is received from a customer in the current period, but the related performance obligation is…

A: Accounting principles are general guidelines that are used by the accountant in preparing the…

Q: basic step in auditing unclaimed salaried and wages is to verify disposition of the account…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: What is Revenue Recognition Companies should recognize revenue in the accounting period in which a…

A: Revenue: The entire amount of money received from the sales related to the main operation of the…

Q: The following statements relate to analysis of expenses in the income statement based on either the…

A: PAS are Philippine Accounting Standards PAS 1 -  Presentation of Financial Statements.

Q: Which one among the following conditions is NOT a condition of Murabaha:   - Payment may be made…

A: Murabaha, also known as cost-plus finance, is an Islamic financing system in which the buyer and…

Q: When a contract contains more than one performance obligation, the seller allocates the transaction…

A: Contract: A contract is a legal agreement among two or several parties to perform some task and…

Q: Under the completed-contract method, the Contract Asset/Liability account balance will consist of O…

A: The completed contract method is an accounting approach where revenue and expenses from long-term…

Q: Under which of the following circumstances would a company need to consider whether products or…

A: Solution: When a revenue arrangement involves more than one performance obligation, company need to…

Q: Discuss generally how revenue should be recognized at interim dates and specifically how revenue…

A: Revenue recognition refers to the accounting process of recognizing and recording revenue  in a…

Q: David Mendez Under the percentage-of-completion method, how should the balances of progress billings…

A: Progress Billings as income: Progress billings represent amounts billed to customers for work…

Q: The cost-plus approach:   a. refers to contracts that are modified from their original terms…

A: Cost plus contract means a contract in which buyer agrees to pay the  contractor all the Cost plus a…

Q: What is an overbilling and how is it used in percentage - of - completion accounting?

A: In construction and project accounting, overbilling refers to the situation where a contractor…

Q: evenue is recognized for sold consignment goods when a. The consignee receives the goods b. When…

A: Solution: Revenue is recognized for sold consignment goods when "The goods are sold by the consignee…

Q: Place the following steps for recognising revenue in order in accordance with IFRS 15 Revenue from…

A: We have the following question:

Q: Which of the following is not an example of a fixed cost   A.Salaries of staff   b. Direct…

A: A fixed cost is a type of cost which does not change with the change in level of activity and will…

Q: If the initial fee is collectible over an extended period and there is a significant uncertainty of…

A: The revenue is the income to be received by an organisation for providing goods and services to its…

Q: Are the financial reports contained in the annual report considered financial accounting reports or…

A: Financial reports are information regarding the financial performance and financial position of a…

Q: 1. Which of the following disclosures is required for a change from Average costing to FIFO?   a.…

A: An alteration in accounting principles, accounting assumptions, or the reporting entity is referred…

Q: Will the financial statements of a company always differ when different choices at the start of the…

A: Denominator-level Capacity Concepts:Denominator-level capacity concept is a term used to depict the…

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.