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X Question 4 Module 5 of the text deals with: Revenue Recognition and Operating Income. As used in finance or accounting: (A) (1) What is
X Question 4 Module 5 of the text deals with: Revenue Recognition and Operating Income. As used in finance or accounting: (A) (1) What is the meaning of Revenue? (2) What is the meaning of Recognition? (3) What is the meaning of Operating Income? (B) In accounting for Long-Term Construction Contracts, the Cost-to-Cost Method may be used. (1) What is the other name for Cost-to-Cost Method? (2) Why is it called the Cost-to-Cost Method? (3) What is the other name for Contract Price, and why? (C) Assume that XYZ Company is given a 3 year contract worth $9,000,000 to build a ship during the years 2018, 2019, and 2020 where the contract is signed January1, 2018 and work to build the ship started the same day. It is estimated that the total cost to build the ship would be $6.000.000. Further assume that in 2018 $2,000,000 cost was incurred to build the ship. How much revenue should be recognized in 2018? Please show supporting computations: Like the editor to format your
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