Question
What is the input method of recognizing revenue over time? What is the output method of recognizing revenue over time? Using the input method, how
What is the input method of recognizing revenue over time?
What is the output method of recognizing revenue over time?
Using the input method, how much revenue would be recognized in Year 1 and what journal entry would be made to record that revenue? What would be the gross profit for Year 1?
Using the input method, how much revenue would be recognized in Year 2 and what journal entry would be made to record that revenue? What would be the gross profit for Year 2?
Using the input method, how much revenue would be recognized in Year 3 and what journal entry would be made to record that revenue? What would be the gross profit for Year 3?
An entity may not be able to estimate the degree of completion of a project at the end of the first year, perhaps because this is the first time such a project has been undertaken by the firm. In that case, how much revenue would the firm recognize in that year if significant costs have been incurred in the construction process?
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The Information Audit A Practical Guide
Authors: Susan Henczel, Sue Henczel
1st Edition
3598243677, 978-3598243677
