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Highlight Text Accounting Contract

Highlight Text Accounting Contract

Aug 6th, 2022

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How to Highlight Text Accounting Contract

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In this session, we will explore the completed contract method, which is part of contract accounting for long-term construction projects. There are two primary accounting methods for such contracts: the completed contract method and the percentage of completion method, which was covered in a previous session. It's recommended to review the percentage of completion method for a better understanding of when to use each method. The percentage of completion method allows for the recognition of some revenues and gross profit before the project's completion, contingent on specific conditions. This session will focus on the completed contract method while emphasizing the importance of understanding both methods.

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