ANSWER KEY Research Case 5–6Long-term contract accounting
An article published in Accounting Horizons describes the current accounting practices and disclosures for long-term contracts for the Fortune 500 companies.
Required:
In your library or from some other source, locate the indicated article in Accounting Horizons, September 2004, and answer the following questions:
1. How many firms reported the use of one of the two long-term contract accounting methods?
2. Approximately half of the firms are in which industry?
3. How many firms reported the use of the percentage-of-completion method? The completed contract method?
4. What is the most frequently used approach to estimating a percentage-of-completion?
