Beaver Dam Builders Inc

question 47

Multiple Choice

Beaver Dam Builders Inc.has collected the following information about a dam it is building: costs to date $300,000, estimated total costs $1,200,000, estimated total revenues $1,600,000.If Beaver Dam uses the percentage-of-completion method to recognize revenue, how much revenue related to the project have they recognized to date?

• A)$300,000
• B)$400,000
• C)$1,200,000
• D)$1,600,000

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Definitions:

Income Statement Columns

The sections or divisions in an income statement that segregate information, such as revenues, expenses, and net income, for analysis.

Revenue And Expense

Key components of a profit-oriented organization's income statement, where revenue represents the total income earned and expense represents the cost incurred to earn that income.

Adjusted Trial Balance

A listing of all company balances after adjustments have been made for accruals, deferrals, and other adjustments during the accounting period.

Statement Of Owner's Equity

A financial document detailing changes in the equity of a company due to earnings, withdrawals, and other factors over a period.