The Following Data Relate to a Construction Job Started by Worthington

question 19

Multiple Choice

The following data relate to a construction job started by Worthington Co. during 2011:

See Worthington Co. information above. Under the percentage-of-completion method, how much should Worthington recognize as gross profit for 2011?

• A) $0
• B) $40,000
• C) $80,000
• D) $100,000

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Definitions:

Adverse Selection

A situation in economics where the seller possesses more information about the product or service than the buyer, leading to imbalanced and unfavorable transactions.

Affected Individuals

Persons who directly experience the impact or consequences of a specific event or condition, particularly in contexts of disaster, policy, or health.

Concentration of Effect

The degree to which a particular intervention or action yields significant impact within a focused area or group.

Affected by Decision

Entities or individuals who are impacted by the outcomes or consequences of a particular decision-making process.