Question

progress payment received by the contractor from the client are
a) debited to the contract account
b)credited to the contractor ac
c)debited to the client account
d) credited to client ac​

Answer 1

Answer:

a debited to the contract acc

......

Answer 2

The correct answer is OPTION D: Credited to Client Account.

• In the construction industry, a progress payment is a portion of a payment made to a company or contractor after a certain stage of construction is finished.
• Businesses can recoup a portion of their costs as the project progresses, helping them to maintain a continuous cash flow.
• They also safeguard businesses in the event of a client's nonpayment; a business can choose to cease a project until the problem is resolved and payment is collected.
• Clients, on the other hand, can verify that the billable work was completed satisfactorily before proceeding with the project.
• This method of gradual acceptance may assist in avoiding future difficulties.