Which of the following is not true about accounting for long-term construction contracts?
A) Long-term construction contracts could show a contract asset or contract liability,depending on the relation between construction in progress and billings.
B) Billings on contracts in progress is a contra account to accounts receivable.
C) Gross profit is debited to construction in progress.
D) When a customer is billed for payment due,billings on contracts in progress is credited at the same time accounts receivable is debited.
Correct Answer:
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