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Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
A long-term contract is one that [...].
Answer
spans a number of accounting periods

Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
A long-term contract is one that [...].
Answer
?

Tags
#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Question
A long-term contract is one that [...].
Answer
spans a number of accounting periods
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A long-term contract is one that spans a number of accounting periods.

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3.2.1. Long-Term Contracts
A long-term contract is one that spans a number of accounting periods. Such contracts raise issues in determining when the earnings process has been completed and revenue recognition should occur. How should a company apportion the revenue earned under a l

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