A construction project is expected to take two-and-a-half years to complete. Partial Billings exceeds Construction in Progress. 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 exceed Construction in Progress, it indicates a liability, as the company has billed more than the work completed. Therefore, it is reported in the current liabilities section.

A Construction Project Is Expected to Take Two-And-A-Half Years to Complete