Estimated losses on long-term contracts-true or false

Assignment Help Accounting Basics

Reference no: EM132783693

Tell whether the following statements are True or False.

Question 1: Under the percentage-of-completion (overtime) method, amounts billed and the cash actually received affect income recognition.

Question 2: Under the percentage-of-completion (overtime) method, the percent complete is often estimated by comparing the cost incurred to date with the total estimated cost to complete.

Question 3: The percentage-of-completion (overtime) and cost recovery (point-in-time) methods calculate different amounts of total profit or loss for a particular contract.

Question 4: Use of the percentage-of-completion (overtime) method is dependent on a firm's ability to make dependable forecasts of future costs.

Question 5: Under the cost recovery (point-in-time) method, gross profit or loss is never recognized until the contract is completed.

Question 6: Under the cost recovery (point-in-time) method used to account for long-term contracts under PFRS, equal amounts of revenue and cost are recognized until all costs are recovered.

Question 7: Estimated losses on long-term contracts are recognized ratably over the contract term regardless of the revenue recognition method used.

Question 8: The most popular input measure under percentage-of-completion (overtime) accounting is the cost- to-cost (point-in-time) method.

Question 9: Estimates of architects and engineers of percentage-of-completion (overtime) are not acceptable under generally accepted accounting principles.

Question 10: At the conclusion of a construction contract, the balance in Construction in Progress will be exactly equal to the amount in Progress Billings on Construction Contracts when using the percentage-of-completion (overtime) method.

Reference no: EM132783693

Questions Cloud

Difference between efficient and agile supply chain : Can you discuss the difference between efficient and agile supply chain strategies?

About whether the news reinforces or combats stereotypes : Make a claim about whether the news reinforces or combats stereotypes that may lead to tense/violent interactions between law enforcement and black youth.

Why is a schedule of cash flows necessary : What three categories are shown in the Indirect Method schedule? Are they same in the Direct Method? Why is a schedule of cash flows necessary

Discuss about the strategic assessment of the war : In no more than 1,000 words, and no less than 850, prepare an opinion piece suitable for publication in a major newspaper, dated January 1, 1917.

Estimated losses on long-term contracts-true or false : Under the cost recovery (point-in-time) method, gross profit or loss is never recognized until the contract is completed.- True or False

Who is the author intended audience : Who is the author's intended audience? Identify legal concerns that may exist for IHRM in training multinational managers.

What internal and external factors do you observe : Nokia is a communications and information technology company included in the Fortune Global 500 ranking and has a rich heritage that can be traced back to the 1

What are major explanations that interviewees put forward : What are the major explanations that interviewees put forward about the causes, dynamics, and effects of the Cultural Revolution?

Identify a hazard in the food processing industry : Identify a hazard in the Food processing industry. List all the approaches you could undertake to control or minimize the hazard?

User Account

All Pages