Discuss the principle of recognizing revenue


Response to the following questions:

1. What are the differences between the two methods of accounting for long-term construction contracts?

2. Under what circumstances does a company use the percentage-of-completion method for long-term contracts?

3. How may the departure from the principle of recognizing revenue only at the time of the sale be justified when a company uses the percentage-of-completion method?

If possible, please give examples to better understand your response.

 

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Accounting Standards: Discuss the principle of recognizing revenue
Reference No:- TGS02104741

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