The accounting for a multiple element contract separates the contract with a customer into pieces (components or

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The accounting for a multiple element contract separates the contract with a customer into pieces (components or deliverables) and assigns each component a portion of the total contract revenue. The percentage of completion method of accounting for a longterm construction contract also separates the contract for accounting purposes. How do the approaches used by the multiple element contract method and the percentage-of-completion method to separate the contract differ from, and resemble, each other?

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Financial Accounting an introduction to concepts, methods and uses

ISBN: 978-0324789003

13th Edition

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

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