Asked by
Ramona Michelle Magtangob
on Dec 06, 2024Verified
Under the completed-contract method of revenue recognition, the partial billings account is closed out against the
A) construction in progress account
B) construction revenue account
C) income summary account
D) construction expense account
Completed-Contract Method
An accounting strategy where revenue and expenses of a long-term project are deferred until the project is completed, at which point they are recognized in the fiscal period of completion.
Partial Billings
The invoicing of a portion of the amount due for goods or services before the work is fully completed.
Construction In Progress
The balance sheet account that represents the costs incurred on a construction project during the period it is actively being worked on.
- Understand the diversity of revenue recognition practices and how they are executed.
Verified Answer
OF
Learning Objectives
- Understand the diversity of revenue recognition practices and how they are executed.