Which of the Following Is Not True About Accounting for Long-Term

question 117

Multiple Choice

Which of the following is not true about accounting for long-term construction contracts?

• A)Long-term construction contracts could show a contract asset or contract liability,depending on the relation between construction in progress and billings.
• B)Billings on contracts in progress is a contra account to accounts receivable.
• C)Gross profit is debited to construction in progress.
• D)When a customer is billed for payment due,billings on contracts in progress is credited at the same time accounts receivable is debited.

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