Which of the Following Is True About Accounting for Contract

question 40

Multiple Choice

Which of the following is true about accounting for contract assets (CIP in excess of billings) in each balance sheet prior to completion of 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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Definitions:

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The idea that the United States is inherently different from other nations, often with a focus on its ideals of democracy, liberty, and individualism.

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