"An entity has two long-term construction contracts, one of which qualifies for revenue recognition over time and the other which does not (and so requires revenue recognition upon completion of the contract). For either of these two contracts, what account would be debited when preparing the journal entry to record billings
Qualifies Doesn't qualify
a. Billings Construction Receivable Cash
b. Construction Receivable Construction Receivable
C. Cash Billings Construction in Progress
d. Constructions in Progress Constructions in Progress
Pc Multiple Choice
A) Option a
B) Option c
C) Option d
