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:

Major Buffer

An agent or mechanism that helps reduce or counteract the impact of stress or change in a system or environment.

Extracellular Fluid

Body fluid located outside the cells, which includes interstitial fluid, blood plasma, and other body fluids; it serves various functions including transporting nutrients and removing waste.

Angiotensin II

A peptide hormone that plays a crucial role in the body's blood pressure regulation and fluid-electrolyte balance.

Sodium and Water

Essential elements and compounds in the body that help regulate blood pressure, volume, and the body's fluid balance.