RECOGNITION OF REVENUE Flashcards
1
Q
Input method
A
Recognize revenue based on stages of the contract completion
2
Q
Cost to cost method
A
The input method recognized costs on a ration on the progress of the contract
Total costs incurred to date to total estimated costs.
3
Q
The performance of the contract is not reasonably measurable but the costs incurred in satisfying the performance obligation are expected to be recovered
A
Revenue should be recognized based on a zero profit margin
