Under the Earnings Approach, How Should the Balances of Progress

question 24

Multiple Choice

Under the earnings approach, 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, as a current asset if debit balance and current liability if credit balance.
• D)Net, as income from construction if credit balance, and loss from construction if debit balance.

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Definitions:

Resting Membrane Potential

The electrical potential difference across the membrane of a neuron at rest, typically around -70mV.

Refractory Periods

The period immediately following an action potential during which a neuron is incapable of firing another action potential, ensuring the unidirectional flow of nerve impulses.

Firing Rate

Firing rate refers to the frequency at which a neuron sends electrical impulses, an important factor in the neural encoding of information.

Neuron

A specific type of cell responsible for conducting nerve signals; referred to as a neuron.