Good day! I am confused at the difference of the two questions below and I hope I could be guided and clarified. Thank you!
MOC Construction Company started work on three job sites during the current year. Any costs incurred are expected to be recoverable. Data relating to the three jobs are given below (image):
1.) If the company records revenue
over time
, how much must be shown as current asset in the balance sheet of MOC Construction Company as of December 31?
A.
5,500,000
B.
500,000
C.
250,000
D.
100,000
2.) If the company records revenue
at a point in time
, how much must be shown as current asset in the balance sheet of MOC Construction Company as of December 31?
A.
5,100,000
B.
500,000
C.
250,000
D.
100,000
Extracted text: Site Contract Price Cost Incurred Estimated Costs to Complete Billings on Contract Collections on Billings 1 5,000,000 3,750,000 5,000,000 5,000,000 7,000,000 1,000,000 4,000,000 900,000 900,000 2,500,000 1,000,000 1,000,000 1,500,000 1,000,000