[Anonymous]

Can someone tell me the classification of these accounts? Thanks.

Construction in progress

Billings on Long Term contracts

[pshustler]

My best guess in Contra Asset. I remember a question about this in Wiley Test Bank, but I cant recall it exactly

BEC - 86
AUD - 94
REG - 88
FAR - 89

[Anonymous]

That's what I thought it was at first, but to increase the value of the CIP account you have to debit it. Thanks for replying – I think I might need to use some of the help time available to me through Yaeger for this one.

[Anonymous]

Construction in Process is an asset (inventory) account. BILLINGS on CIP or “Progress Billings” is a contra-inventory (contra-asset) account.

[Anonymous]

Gotcha – that makes sense to me now. Thanks baseball! You got a great score on FAR – do you mind sharing your study strategy?

[Megan]

CIP is generally a fixed asset account (not inventory), but not depreciated.

BEC 52, 61, 74, 77
AUD 80
REG 75
FAR 50, 60, 70, 74, 83...DONE!!
..Texas.. Baby #2 born 4/11/11

[Minimorty]

CIP on like a building would be considered a fixed asset account, but CIP on goods for resale would be an inventory account. Pretty sure Baseball is right with his characterization. However, like I said, it just depends on WHAT the CIP is referring to.

Here is a decent explanation:

https://wiki.answers.com/Q/How_are_the_balances_of_progress_billings_and_construction_in_progress_be_shown_at_reporting_dates_prior_to_the_completion_for_a_long_term_contract

[Minimorty]

@Jeff – Any idea why the links go off the screen instead of wrap like normal text? Not a big deal, just wondering.

[Megan]

Oohh okay, my bad. I've got CIP for fixed assets on the brain while auditing this fixed asset rollforward I guess 🙂

BEC 52, 61, 74, 77
AUD 80
REG 75
FAR 50, 60, 70, 74, 83...DONE!!
..Texas.. Baby #2 born 4/11/11

[Anonymous]

@apbandj — Sure, I studied FAR for about a month using Becker. I did about 3 topics (F1 being one topic, for example) a week at a rate of about 1 every two days. I would listen to a subtopic within the topic I was studying while hilighting and taking notes (mostly what Pete and Tim commanded I take notes on), then I would immediately do the questions for each subtopic I finished. Finally, I would do the supplemental questions at the end of the topic and re-do any sets of questions on areas that I may have found difficult. After getting through all 9 topics, the first thing I did was take the first of Becker's Final Exams to gauge where my understanding of FAR was prior to my review. Then I would review my notes and hammer out questions on areas I was unsure about while taking many progress tests. When I completed my review, I took Becker's second Final Exam and noted any final areas that I may have wanted to brush up on before the exam. I pretty much followed the same methodology for each of the exams.

[Author]

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