Which of the Following Is True About Accounting for Long-Term

question 30

Multiple Choice

Which of the following is true about accounting for long-term construction contracts?

• A)Contract assets are likely to be larger if revenue is recognized over time than if revenue is recognized at a point in time.
• B)Contract assets are likely to be smaller if revenue is recognized over time than if revenue is recognized at a point in time.
• C)Contract assets are likely to be the same size regardless of whether revenue is recognized over time or at a point in time.
• D)There is no way to tell how revenue recognition timing will affect the size of contract assets without more information.

---

Definitions:

James Coleman

An influential American sociologist known for his contributions to educational sociology, social theory, and the concept of social capital.

Power Differentials

The differences in power between individuals, groups, or institutions, often contributing to variations in their ability to influence outcomes.

Equal Rewards

The principle that individuals who contribute similarly to a task or society should receive similar compensations, recognitions, or resources.

Associations

Organized groups of people who come together to pursue common interests, goals, or activities.