How Should the Balances of Progress Billings and Construction in Progress

question 36

Multiple Choice

How should the balances of Progress Billings and Construction in Progress be shown at reporting dates prior to the completion of a long-term contract?

• A) Progress Billings as income,Construction in Progress as inventory
• B) Net,as income from construction if credit balance,and loss from construction if debit balance
• C) Progress Billings as deferred income,Construction in Progress as a current asset
• D) Net,as a current asset if debit balance and current liability if credit balance

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Definitions:

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