TB MC Qu$.6-161($Static$)$ Which of the following is not true about...

Which of the following is not true about accounting for long$-$term construction contracts?

Multiple Choice

The billings on construction contract account is a contra account to accounts receivable.

Gross profit is debited to construction in progress.

When a customer is billed for payment due, billings on contracts in progress is credited at the same time accounts receivable is debited.

Long$-$term construction contracts could show a contract asset or contract liability, depending on the relation between construction in progress and billings.