When Partial Billings exceeds Construction in Progress, under the completed-contract method the two accounts are reported together on the balance sheet in the
A)current assets section
B)long-term assets section
C)current liabilities section
D)long-term liabilities section

Question

Quizplus · Accepted Answer

When Partial Billings exceeds Construction in Progress under the completed-contract method, the excess is reported as a liability because it represents an amount received in excess of the earnings to date. Therefore, it is shown in the current liabilities section of the balance sheet.

When Partial Billings Exceeds Construction in Progress, Under the Completed-Contract