Neither the Billings account balance nor the Construction in Process account balance can exceed the long-term contract price.

Name: Neither the Billings account balance nor the Construction in Process account balance can exceed the long-term contract price.
Brand: Quizplus
Rating: 4.7 (34 reviews)

Question

Quizplus · Accepted Answer

The long-term contract price is the maximum amount that can be recognized as revenue and billed to the customer. Therefore, the Billings account balance and the Construction in Process account balance cannot exceed the long-term contract price.

Neither the Billings Account Balance nor the Construction in Process