Revenue Flashcards
1
Q
Cash to Accrual Formula
A
Sales
+End AR
-Beg AR
=Sales Rev on Accrual
2
Q
COGS from Cash Basis
A
Cash Remitted
+Inc AP
-Inc Inv
=COGS on Accrual
3
Q
When is PC method used?
A
Reasonably estimate cash
4
Q
When is completed contract used?
A
When reliable estimates cannot be made
5
Q
Percent Complete Formula
A
Cost incurred to date/Total estimable cost*Estimate Profit-Previous Income REcognized
6
Q
PC Total Estimate Costs Formula
A
Cost incurred+Est costs to complete
7
Q
PC Est Profit Formula
A
Contract Price- Est Costs
8
Q
JE for Costs Incurred to date
A
Dr. CIP
Cr. Payable
9
Q
How to derive progress billings?
A
Income *(1-ratio)
10
Q
Progress billings JE
A
Dr. AR
Cr. Billings CIP
11
Q
Collect Billing
A
Dr. Cash
Cr. AR
12
Q
Recognize Income
A
Dr. CIP
Cr. Income
