As each contract has or will have a unique flow of revenue, it makes sound business sense
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As each contract has or will have a unique flow of revenue, it makes sound business sense to know the profit or loss it generates. Hence the use of individual contract accounts. When financial statements are produced that include longterm contracts (those that extend into future accounting periods), which fundamental accounting concept is adhered to by maintaining a separate contract account for each contract?
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While it is ongoing each contract represents an asset or liability Th...View the full answer
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Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
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