Under the completed-contract method of revenue recognition, the partial billings account is closed out against the
A)construction in progress account
B)construction revenue account
C)income summary account
D)construction expense account

Question

Quizplus · Accepted Answer

Under the completed-contract method, revenue is recognized when the project is complete. The partial billings account is closed out against the construction revenue account to recognize the revenue earned on the project.

Under the Completed-Contract Method of Revenue Recognition, the Partial Billings