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

---

Definitions:

Society's Point of View

Society's Point of View considers the interests, needs, and values of the community or larger collective, often in the context of decision-making or assessing impacts.

Policy Change

Modifications or alterations made to existing rules, laws, or regulations.

Low-Income Families

Households earning significantly below the median income of a geographical area, often facing financial stress.

Equitable

Fair or impartial treatment, especially in the context of the distribution of wealth or opportunities.