Quiz_8_Day Key - ACC 5110 QUIZ 8 Name: Part I. Choose the...

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Winter 2010 QUIZ 8 Name : KEY Part I. Choose the best answer. 1. The revenue recognition principle provides that revenue is recognized when a. it is realized. b. it is realizable. c. it is realized or realizable and it is earned. d. none of these. 2. 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. 3. Which of the following is not a difference between the percentage-of completion and completed-contract methods of accounting for long-term construction contracts? a. They report different amounts for inventory during the construction period. b. They report different amounts for progress billings during the construction period. c. They cause a different cash inflow during the construction period. d.
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Quiz_8_Day Key - ACC 5110 QUIZ 8 Name: Part I. Choose the...

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