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.

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