How Should the Balances of Progress Billings and Construction in Process

question 139

Multiple Choice

How should the balances of progress billings and construction in process be shown at reporting dates prior to the completion of a long-term contract?

• A) Progress billings as deferred income, construction in progress as a deferred expense.
• B) Progress billings as income, construction in process as inventory.
• C) Net balance, as a current asset if debit balance, and current liability if credit balance.
• D) Net balance, as income from construction if credit balance, and loss from construction if debit balance.

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Definitions:

Agility

The ability to move quickly and easily, often referenced in both physical and mental contexts to describe flexibility and adaptiveness.

Coordination

The organization of different elements or activities to operate effectively together.

Osteoporosis

A condition where bones become weak and brittle due to loss of bone density, increasing the risk of fractures.

Bone Mass

The amount of mineral matter per square centimeter of bones, an indicator of bone density and strength.