Methods of revenue recognition is preferable
When work to be done and costs to be incurred on a long -term contract can be estimated dependably, which of the follwing methods of revenue recognition is preferable?
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Deshaies Corporation is preparing its cash budget for November. The budgeted beginning cash balance is $10,000. Budgeted cash receipts total $100,000 and budgeted cash disbursements total $104,000.
The Fancy Umbrella company makes beach umbrellas. The production process requires 3 sq meters of plastic sheeting and a metal pole. The plastic sheeting costs $0.50 per sq meter and each metal pole costs $1.00.
Cost estimates on a long-term contract may indicate that a loss will result on completion of the entire contract. in this case, the entire expected loss should be?
Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month.
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