O'Reilly logo

Wiley GAAP 2008 by Colorado Steven M. Bragg Englewood, Ralph Nach American Express Tax and Business Inc., Barry J. Epstein

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Definitions of Terms

ContractorsIn the context of this discussion, contractors are enterprises that sell products or services to the US government pursuant to a formal contract. The relationship to the government can be direct (a prime contract between the enterprise and the government) or indirect (a subcontract between the enterprise and a prime contractor).
ContractA legal agreement obligating a contractor (referred to as the “general contractor” or “prime contractor”) to provide products or services to the US government. The term also refers to subcontracts obligating subcontractors to indirectly perform in a similar manner under the supervision and control of the prime contractor.
Cost‐plus‐fixed‐fee contractsAn agreement that provides for contractors to receive a specified fixed fee and to be reimbursed for their allowable costs. Because title passes to the government and the contractor obtains an unconditional right to partial payment prior to delivery, delivery of the finished product is not necessarily evidence of performance.
Disposal creditsDeductions from the termination claim receivable for approved retention or sale of inventory previously included in the claim.
No‐cost settlementsSettlements in which the contractor waives the right to make a claim. No sale is recorded and applicable costs retain their usual classification.
Service contractsContracts in which the contractor acts only as an agent.
Supply contractsContract in which the contractor's services extend beyond ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required