Under the percentage-of-completion method, how should earned but unbilled revenues on a long-term contract be disclosed on the statement of financial position?
A)as construction in process in the current asset section
B)as construction in process in the noncurrent asset section
C)as a receivable in the noncurrent asset section
D)in a note to the financial statements until the customer is formally billed for the portion of work completed

Question

Quizplus · Accepted Answer

Under the percentage-of-completion method, earned but unbilled revenues are typically disclosed as "construction in process" in the current asset section of the statement of financial position, reflecting the work completed but not yet billed.

Under the Percentage-Of-Completion Method, How Should Earned but Unbilled Revenues