Which of the following is not a difference between the percentage-of completion and completed-contract methods of accounting for long-term construction contracts?
A) They report different amounts for inventory during the construction period.
B) They report different amounts for progress billings during the construction period.
C) They cause a different cash inflow during the construction period.
D) They report different amounts for accounts receivable during the construction period.

Question

Quizplus · Accepted Answer

The percentage-of completion and completed-contract methods of accounting for long-term construction contracts differ in the amounts reported for inventory, progress billings, and accounts receivable during the construction period. However, they do not cause a different cash inflow during the construction period, as cash received from customers is generally the same under both methods.

Which of the Following Is Not a Difference Between the Percentage-Of