The Body of Knowledge for CCIFP’s – Answers to Q- on previous post

The Body of knowledge for the CCIFP – Answers from previous Post!

On our previous post we discussed Chapter 4 – Income Recognition and we had homework!

How many of you did your homework?  Come on now… raise your hands!!  : – )

Well, no worries… because we are going to answer them in this post!


⇒In 1981 the AICPA issued a new Audit and Accounting Guide, “Construction Contractors”. Simultaneously, the AICPA issued a statement of Position 81-1 now known as “ASC 605-35”    –  If you answered D  you answered correctly!

⇒Of the two GAAP acceptable methods for income recognition, “Percentage of Completion Method” is more preferred! If you answered B you answered correctly!

⇒Acceptable income recognition methods in accordance with GAAP would be

(A- Completed contract Method)

  • Completed Contract Method
  • Percentage of Completion Method

⇒Which income recognition method is considered the Percentage of Completion Method?

  • D – Revenue, costs and gross profit are recognized in all accounting periods throughout the duration of the contract

⇒The Cash Basis, Accrual (Billing) and the Hybrid Basis are acceptable for financial reporting in conformity. If you answered C you answered correctly!

How many of you answered them correctly? I’m sure that all of you answered them correctly! : – )

Well, this will be a short post, so let’s do some home work:

Let’s move to Chapter 6 – Legal Issues in “THE BOOK” 

Go ahead and read this chapter. We’ll be discussing this on the next post!

HAPPY READING!!!

For those of you that are in the path of IRMA, please get out of where you are. It’s not worth the risk in trying to stick it out. Go the the FEMA website to obtain contact information, news and resources.

Until next Post!

 

 

Author: Terry Kelley MBA

Controller in the Construction industry. Over the past 30 years I have worked as an electrician (studied 3 years at CCVTC -for Electrical) for 6 years. I've owned my own construction company for over 15 years (where I wore many hats) to include accounting and finance. And, for the remainder of my career I have and still are working as a Controller in the Construction Industry. I have earned my Bachelors degree and MBA in accounting. Now, I am working to earn my CCIFP certification. I have put together this study group in hopes of working together with other CCIFP candidates.

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