Page 75 - Unanet GovCon Using Billing Revenue - Participant Guide ebook

c) Due to the Bill date on the billing schedule - This is an incorrect answer
because a billings schedule with a Bill date is used for Fixed Price
contracts

13. How is Deferred Revenue, for the Billing Type CP (Cost Plus) projects,
handled at the end of the year?
a) Deferred Revenue cannot exist for CP (Cost Plus) projects - This is an
incorrect answer because Deferred Revenue could exist if the indirect
rate used to calculate Billings and Revenue are not the same
b) Corrected through a “true-up” invoice or journal entry since
Actual rates are often unknown until after the year end close -
This is the correct answer because CP projects should be reconciled
once Actual rates are known
c) Not Corrected since Actual rates are often unknown until after the year
end close - This is an incorrect answer because CP projects should be
reconciled once Actual rates are known

14. What drives when a fixed price item is included in the Billing & Revenue
Post?
a) Bill date in the Project level Billing menu - This is the correct -
because the bill date drives when amounts are included in the B&R
Post
b) When timesheets are in a Lock/Extracted status - This is the incorrect
answer because this is the driver for TM/CP projects
c) When expense reports are in a Lock/Extracted status - This is the
incorrect answer because this is the driver for TM/CP projects

15. When setting up the Project level Billing for Fixed Price Projects (FP),
what are the Revenue Recognition Method choices available to be used to
determine when Revenue is recognized?
a) Custom Schedule is the only Revenue Recognition Method used for
FP projects - This is an incorrect answer because the revenue
recognition methods are Custom Schedule, % Complete, When Billed
selected for FP projects
b) Revenue recognition methods are not selected for FP projects - This is
an incorrect answer because revenue recognition methods are
selected for FP projects
c) Custom Schedule, % Complete, When Billed - This is the correct
answer because these are the selectable revenue recognition methods
for FP projects

APPENDIX A: CHECK YOUR UNDERSTANDING ANSWER KEY
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