BUSI 2001 Study Guide - Quiz Guide: Debits And Credits, Iphone 6, Current Liability
BUSI 2001- Intermediate
•Revenue from contracts with customers
•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