Superior Builders Has a Fixed -Price Contract Providing $120,000 of Revenue

question 60

Multiple Choice

Superior Builders has a fixed -price contract providing $120,000 of revenue. Construction on the contract was begun in 2010 and was completed in 2011. Information relating to the contract is as follows:

What amount of income should Superior recognize in 2011 assuming that the company appropriately uses the percentage-of-completion method of income recognition?

• A) $9,286
• B) $15,000
• C) $17,000
• D) $7,000

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Definitions:

Withdrawal Reflex

A rapid, automatic response to a painful stimulus that involves the immediate retraction of the body part encountering the pain to avoid damage or injury.

Sensory Receptor

The ending of an afferent neuron that is specialized to detect specific energy stimuli in its environment.

Sensory Neuron

A nerve cell that is directly involved in receiving and transmitting information from sensory stimuli to the central nervous system.

Synaptic Plasticity

The ability of synapses to change in response to certain types of stimuli. Synaptic changes occur during learning and memory storage.