CH 2. - Revenue Recognition Flashcards
1
Q
What is Total Contact profit? (formula)
A
Contract Price - Total Estimated Cost = Total Contact Profit
2
Q
What is Percent Complete? (formula)
A
Cost Incurred To Date / Total Estimated Cost
3
Q
What is Total Profit To Date? (formula)
A
Total Contract Profit x Percent Complete
4
Q
What is the Current Profit (formula)
A
Total Profit To Date - Previously Recognized Profit
5
Q
What are the 5-Step Revenue Recognition Process?
A
1) Identify Contracts w/ Customers
2) Identify Separate Performance Obligations
3) Determine Total Consideration
4) Allocate Total Consideration
5) Recognize Revenue when or as performance obligations are satisfied
6
Q
When a contract is expected to result in a loss, the entire loss is recognized ____________.
A
Immediately
