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The Billings on Construction in Process account is reported as:

a. A current liability only.
b. Revenue on the income statement.
c. A current asset only.
d. Either a current asset or current liability.

1 Answer

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Final answer:

The Billings on Construction in Process account can be reported as either a current asset or a current liability, depending on the stage of completion of the construction project.

Step-by-step explanation:

The Billings on Construction in Process account can be reported as either a current asset or a current liability. It depends on the stage of completion of the construction project. When a construction project is in progress, the costs incurred are recorded as an asset because they are expected to generate future revenue. Once the project is completed and the revenue is recognized, the costs are transferred from the Construction in Process account to the revenue account on the income statement.

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User Ruvo
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