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The principal advantage of the completed-contract method is that
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Difference between Percentage of Completion method and Completed Contract method?
Difference between Percentage of Completion method and Completed Contract method?
What are some pros and cons of the completed contract method in accounting?
A con of the completed contract method of accounting is that nothing is noted in the ledger until the contract is completed. A pro is that there will be less paperwork in accepting partial payments.
How do you cancel contract with real estate agent?
Prove that the Real Estate Agent has not completed his/her duties afforded to you in said contract.
What depreciation method does target use?
the straight line method
Is Completion of Production method accepted by GAAP?
it is acceptable according to GAAP only in the extraordinary circumstances when forecasting the amount of work completed to date is not possible.
Difference between Percentage of Completion method and Completed Contract method?
Difference between Percentage of Completion method and Completed Contract method?
What are some pros and cons of the completed contract method in accounting?
A con of the completed contract method of accounting is that nothing is noted in the ledger until the contract is completed. A pro is that there will be less paperwork in accepting partial payments.
When comparing the percentage of completion and completed contract method of accounting for long term construction contract both methods will report the same?
yes they will
What factors influence choosing percentage of completion and completed contract method methods of accounting for long term construction contract?
prepere all necessary and materials etc.
Long-term contractors are permitted to use the percentage of completion method for the purpose of revenue recognition and income determination. Consider why this method is not used by other companies?
This method is used for long-term projects when there is a contract, and reliable estimates of production completed, revenues and costs are possible.
If the contract is silent what method to be used percentage of completion or completed contract method?
As the percentage of completion method requires definite receipts but estimated costs so this method is not advisable when receipts of contract are not given. In this scenario there generally appears no contract so it must be the case of a builder who intends to sell the constructed completed project after incurring self costs. In such situations the completion method suits the best.In case the project has been finalised with fixedcontract price and the contractor has his own estimated costs or else the contractor/ builder has entered into contract with various parties ( the prospective buyers) , in advance( before commencing the project/ billing etc.,), with sure receipts then the percentage of completion method is better to be adopted.
What methods could you use to establish effective agreement with suppliers?
A written contract is the usual method
How do you sue for work not completed?
if u had a contract stating the work would be completed, yes
In contract costing profit can be recognised only when the contract is completed?
In contract costing, the profit is only guaranteed when the actual contract is completed because the prices keep changing. There is usually a slight variation between projected profit and the actual figures.
What is the Difference between short and long term contract?
A short term contract is any contract that is started and completed within a fiscal year. A long-term contract is any contract that is started in a fiscal year and is completed in another fiscal year. For instance. If the taxpayer has a December 31 year end and a contract is started on December 24th and completed on January 3rd, this is deemed a long-term contract even though the duration of the contract was only 10 days.
What is the difference between lump sum contract and turnkey contract?
A lump sum contract is an agreement to make a one time payment for goods and services as specified by the purchaser in the agreement. A turnkey contract is an agreement to deliver a completed ready to use service or project without any specifications made by the purchaser.
How do you cancel contract with real estate agent?
Prove that the Real Estate Agent has not completed his/her duties afforded to you in said contract.
