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erastovalidia [21]
3 years ago
7

The Talmage Company owns several shopping malls. One of the shopping malls is undergoing an underground renovation. Copeland Con

struction is the construction company that is performing these renovations. According to GAAP, when is the most appropriate time to recognize revenue from this construction project?
Social Studies
1 answer:
aleksandrvk [35]3 years ago
6 0

Answer:

the most appropriate time to recognize revenue from this project will be at the moment that Copeland Construction bills for its work, rather than when the money is received.

Explanation:

According to GPPA revenue recognition sets that the revenue that a company needs to registered will be based mainly on the date when the revenue is earned rather than when it is received, which means that if the contract for this project is signed in December 2018, but the project will be developed during 2019, the firm, in this case, will recognize this revenue in 2018.

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