Question
A partial balance sheet of ACE Construction Company is shown below. Can you identify which construction accounting method this company uses and which income recognition
A partial balance sheet of ACE Construction Company is shown below. Can you identify which construction accounting method this company uses and which income recognition method is used by the company? Explain how you have identified the methods.
| Assets |
|
| Cash | $1,876,854 |
| Accounts Receivable | $875,202 |
| Material Inventory | $420,210 |
| Costs and Estimated Earnings in excess of billings | $250,653 |
| Machinery and equipment | $642,173 |
| Cars and trucks | $124,873 |
| Less accumulated depreciation | $218,748 |
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Modern Advanced Accounting In Canada
Authors: Hilton Murray, Herauf Darrell
7th Edition
1259066487, 978-1259066481
