When Progress Billings Are Made by a Contractor on a Long-Term

question 32

Multiple Choice

When progress billings are made by a contractor on a long-term contract, what account is credited?

• A) Contract Revenue, a revenue account
• B) Contract Billings, a contra-asset account
• C) Contract Receivable, an asset account
• D) Contract Billings, a contra-revenue account

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Definitions:

All-Terrain Vehicles (ATVs)

Motorized vehicles designed to handle a wider variety of terrain than most other vehicles.

Enforceable

Describes a contract or law that can be legally imposed or acted upon.

Shale Rock

A fine-grained sedimentary rock composed of clay, mineral flakes, and organic matter, known for its ability to store oil and gas.

Mistake Of Value

An error regarding the understanding or assessment of the value of an item or deal, potentially affecting a contract's validity.