a.
Percentage of Completion Method:
It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.
Completed Contract Method:
It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.
The cumulative effect after tax.
b.
Percentage of Completion Method:
It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.
Completed Contract Method:
It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.
To prepare:
c.
Percentage of Completion Method:
It refers to an accounting method in which revenues and expenses of a business on a long-term contract are calculated on the percentage of work done during an accounting period.
Completed Contract Method:
It refers to an accounting method used for a construction contract in which revenues are calculated when the work of the contract is completely done.
To prepare: The footnote for the accounting method change in the financial statement.
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Chapter 21 Solutions
INTERMEDIATE ACCOUNTING-MYLAB W/ETEXT
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- chose best answer plzarrow_forward?? Financial accountingarrow_forwardA firm has a market value equal to its book value. Currently, the firm has excess cash of $1,000, other assets of $5,500, and equity of $6,500. The firm has 650 shares of stock outstanding and a net income of $600. The firm has decided to spend half of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed? a. 625 shares b. 640 shares c. 600 shares d. 630 shares e. 615 sharesarrow_forward
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