Use the Following Information for Questions

question 30

Multiple Choice

Use the following information for questions:
Dudeck Construction Co.agreed to build a bridge for Genoa City.The contract specifies that construction will take three years and Dudeck will receive $12,500,000.The company expects annual costs to be $3,500,000; $2,750,000; and $1,800,000.
-Assume Dudeck uses the percentage of completion method.Revenue recognized in year three will be:

• A)$1,800,000
• B)$2,795,030
• C)$4,166,667
• D)$12,500,000

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Definitions:

Interest Rates

The cost of borrowing money, often expressed as a percentage of the amount borrowed.

National Debt

The complete figure representing the debt a national government holds from borrowing, which is still outstanding.

Recessionary Gap

The difference between the actual level of GDP and the potential GDP that could be produced if all resources were fully employed, indicating an economy is not reaching its full output potential.

Fiscal Policy

Government decisions on taxation and spending to influence the economy, aiming to manipulate demand, inflation, and economic activity.