MGMT 131B Final: Mgmt 131B Final Cheat Sheet
Document Summary
If there is a volume discount & customer fails to meet the threshold, dr cash, cr accts rec and sales discount forfeited. Costs incurred to date/most recent estimate of total costs = percent complete. % complete x est. total revenue (contract price total cost) = revenue (gross profit) to be recognized to date. Revenue to be recognized to date revenue recognized prior = current period revenue (gross profit) Costs incurred to date = last year + current year. Estimated total current costs = cost incurred + cost to complete. Estimated total cost x % of completion = construction costs. Gross profit + costs to date = construction in process. Profit to date: dr construction expense (construction cost). Dr construction in process (progress billing x % [construction cost/total cost]). Completed contract method: don"t do anything till last year. Temporary difference: difference btw. tax basis of asset or liability and its book amount in the financial statements.
