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.

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Definitions:

Formal Punishment

Takes place when the judicial system penalizes someone for breaking a law.

Conflict Crimes

Are illegal acts that many people consider harmful to society. However, other people believe the acts to be not so harmful. People who commit conflict crimes are punishable by the state.

Consensus Crimes

Are illegal acts that nearly all people agree are bad in themselves and harm society greatly. The state inflicts severe punishment for consensus crimes.

Cultural Norm

A rule or standard shared by members of a society that dictates acceptable behavior in various situations.