Question
Long-term contractors maintain accounts for construction in progress (CIP) and Billings on Construction in Progress (PB). How are these accounts presented in the financial statements
Long-term contractors maintain accounts for construction in progress (CIP) and Billings on Construction in Progress (PB). How are these accounts presented in the financial statements for a particular project?
net as a current asset if CIP > PB
net as a current liability if PB > CIP
CIP is shown separately as a current asset, and PB is shown separately as a current liability.
all of the above
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Advanced Financial Accounting
Authors: Richard E. Baker, Valdean C. Lembke, Thomas E. King
3rd Edition
0070054142, 978-0070054141
