Camey Construction Enters into a Long-Term Fixed Price Contract to Build

question 88

Multiple Choice

Camey Construction enters into a long-term fixed price contract to build an office building for $9,000,000. In the first year of the contract Camey incurs $1,000,000 of cost and the engineers determined that the remaining costs to complete are $2,100,000. Camey billed $1,700,000 and collected $1,300,000 in Year 1. Refer to Camey Construction. How much should Camey recognize as Accounts Receivable at the end of Year 1 assuming the use of the percentage-of-completion method?

• A) $700,000
• B) $400,000
• C) $1,000,000
• D) $1,700,000

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Definitions:

Cultural Differences

The variation in the norms, values, beliefs, and practices that exist among groups of people from different backgrounds.

Causes Of Conflict

Factors or situations that lead to disagreements, disputes, or clashes between individuals or groups.

Group Cohesiveness

the extent to which members of a group are attracted to each other and motivated to stay in the group, affecting the group's overall performance.

Intergroup Conflicts

Disputes or disagreements that occur between different groups or teams, often resulting from competition for resources or differences in objectives.