CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Under the completed-contract method, the billings on construction contract represents a measure of the ______.
A. contractor's obligation to perform on the contract
B. contractor's performance to date
C. revenue recognized to date
Explanation: The billings on construction contract account is the amount that has been billed to the purchaser and represents a measure of the contractor's obligation to perform on the contract.

User Contributed Comments 8

User Comment
murli Billed = based on the performance done so for, why not B?
cbb1 It is not a measure of the work done, simply a measure of complying with the contract terms.
C2inOC Agreed. The contractor could do nothing in one year, but bill the client a ton of money the same year
Bibhu Look at the catching word "to date". We can eliminate choices on the basis of this.
hannovanwyk nice bibhu...
cbracho54 very nice bibhu!!
Albert123 Nice Bibhu
kingirm vague question ?? who would do the billing before actually doing what he/she is supposed to do according to a contract ?? do the billing and you are entitled to earn the revenue assoticated.
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