Question: 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 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?

Step by Step Solution

★★★★★

3.44 Rating (189 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Both approaches apply accounting criteria to determine the ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

65-B-A-R-R (140).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

How does the accounting for a speculative derivative investment differ from that for a derivative that serves as a hedge?

How does the accounting for a capital lease differ from the accounting for an operating lease?

How does the accounting for a liquidating dividend differ from that for a normal cash dividend?

"2. Revenue Recognition for Software (25 points) a. A software vendor sold $300,000 software to a customer. The price includes the software (no addition development or modification needed), the...

I need two ratios provided based on the financial statement of a company (fullfinancial attached). I need the price-earnings ratio (the formula of price per share divided by earnings per share) and...

Why are there no revised statements of cash flows in Note 2 of 2009 10-K/ A (Exhibit #3) SECTION FIVE FINANCIAL STATEMENT ANALYSIS The following tables present the effects of the retrospective...

Need help with this case study 1.Should the FASB have overturned the software revenue recognition portion within ASC 985-605? As part of your explanation, consider whether firms will now have too...

Listen to the following videos and then complete the assignments using the changed numbers on the guidance report. Place your answers on the guidance report. Open the Guidance Report and rework the...

Hi, can someone help with question 2 and 3 please? Thank you Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10- K (Mark one) ANNUAL REPORT PURSUANT TO...

hello tutors can someone help with question 2 and 3 please? Thank you Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10- K (Mark one) ANNUAL REPORT...

Determine the tension in each segment of the cable and the cable?s total length. 2 ft D. 50 Ib 3 ft +3R- 4 ft 3 ft 80 lb

How will you construct a pay structure through a five step process for a newly launched telecommunication firm in Pakistan?How will you construct a pay structure through a five step process for a...

Rochelle bought a new Buick. Her monthly June interest was $ 2 9 4 . 0 0 . The current rate of interest is 9 % . Assuming a 3 6 0 - day year, what was Rochelle's balance at the beginning of June?

1. Assume that you are on the staff of a PRC legislator. Outline the arguments that you would use to support a law that required all government agencies to use only open-source software on their Web...

Through the payment of $10,468,000 in cash, Drexel Company acquires voting control over Young Company. This price is paid for 60 percent of the subsidiary's 100,000 outstanding common shares ($40 par...

On December 31, 2011, PanTech Company invests $20,000 in SoftPlus, a variable interest entity. In contractual agreements completed on that date, PanTech established itself as the primary beneficiary...

Opus, Incorporated, owns 90 percent of Bloom Company. On December 31, 2012, Opus acquires half of Bloom's $500,000 outstanding bonds. These bonds had been sold on the open market on January 1, 2010,...

On January 1, 2018, Jay Company acquired all the outstanding ownership shares of Zee Company. In assessing Zee's acquisition-date fair values, Jay concluded that the carrying value of Zee's long-...

Define the term reducing sugar.

If your school has a subscription to the FASB Codification, to log in and prepare responses to the following Instructions (a) Access the glossary (Master Glossary) at the FASB Codification website to...

In what ways does the format of a statement of financial of position under IFRS often differ from a balance sheet presented under GAAP?

Problem 3. A financial expert is giving the following advice: "It is rarely optimal to exercise an American call option on a non-dividend paying stock early. However, when the underlying stock hits a...

For the cash flows shown, determine: ( a ) the number of possible i * * values ( b ) the i * * value displayed by the IRR function ( c ) the external rate of return using the MIRR method if i i = 1 8...

Recently you have joined as Quality Manger of a large Highrise building project. For construction purpose your project uses a Pre-caste concrete blocks of different shapes and sizes. After taking...