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    gwapagirl40's Avatar
    gwapagirl40 Posts: 31, Reputation: 1
    Junior Member
    		  
    #1

    Sep 20, 2012, 12:04 AM
    Completed-contract vs percentage-of-completion method for accounting
    Two accounting students were discussing the alternative methods of accounting for long-term construction contracts. The discussion focused on which method was most like the typical revenue recognition method of recognizing revenue at point of product delivery. Bill argued that the completed contract method was preferable because it was analogous to recognizing revenue at the point of delivery. John disagreed and supported the percentage-of-completion method, stating that it was analogous to accruing revenue during the earnings process,
    That is, as the work was performed.

    Discuss the arguments made by both students. Which argument do you support? Why?

    Please.. I need help for this homework! Thanks
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
    		  
    #2

    Sep 20, 2012, 02:34 PM
    The terms of the contract decide which method you can use to accurately reflect revenue
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