Assume the Percentage-Of-Completion Method of Revenue Recognition Is Used on a Long-Term

question 63

Multiple Choice

Assume the percentage-of-completion method of revenue recognition is used on a long-term construction contract.Under this method,revenues that are earned but unbilled at the balance sheet date should be disclosed

• A) as a long-term receivable in the noncurrent assets section of the balance sheet.
• B) only as a footnote disclosure until the customer is billed for the percentage of work completed.
• C) as construction in progress in the current assets section of the balance sheet.
• D) as construction in progress in the noncurrent assets section of the balance sheet.

---

Definitions:

Nitrate

A polyatomic ion with the chemical formula NO3- or a compound containing this ion, commonly found in fertilizers, explosives, and natural water sources.

Ecosystem Management

A conservation focus that emphasizes restoring and maintaining ecosystem quality rather than the conservation of individual species.

Ecosystem Experiments

Controlled studies designed to investigate the relationships among organisms and their environment within an ecosystem.

Heterocysts

Specialized nitrogen-fixing cells found in some filamentous cyanobacteria, providing an anaerobic environment necessary for the fixation of atmospheric nitrogen.