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Two accounting students were discussing the timing of revenue recognition for long-term construction contracts. The discussion focused on which method was most like the typical

Two accounting students were discussing the timing of revenue recognition for long-term construction contracts. The discussion focused on which method was most like the typical recognition method of recognizing revenue at the point of product delivery. Zhe argued that the recognizing revenue upon project completion was preferable because it was analogous to recognizing revenue at the point of delivery. Maria disagreed and supported recognizing revenue over time, stating that it was analogous to accruing revenue as a performance obligation was satisfied. Maria also pointed out that an advantage of recognizing revenue over time is that it provides information sooner to users.

Which argument do you support Zhes or Marias?

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