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BUSI 2001 Study Guide - Quiz Guide: Debits And Credits, Iphone 6, Current Liability


Department
Business
Course Code
BUSI 2001
Professor
Ouafa Sakka
Study Guide
Quiz

Page:
of 33
Chapter 6
Revenue Recognition
BUSI 2001- Intermediate
Accounting I
Agenda
Long-term contracts
Revenue from contracts with customers
2
3
Long-term contracts
Contracts that extend for periods in excess of 1 year (Continuous earnings
process). Examples: construction of a bridge, dam, road.
The builder may invoice the client at intervals, as various points in the
project are reached: invoices referred to as billings.
Revenues to be recognized based on the percentage-of-completion method
The percentage-of-completion method recognizes revenues, costs, and
gross profit as progress is made toward completion on a long-term contract
-> need to measure the progress