Assume That Spark Uses the Percentage-Of-Completion Method of Accounting

question 37

Multiple Choice

Assume that Spark uses the percentage-of-completion method of accounting.Under the earnings approach, the portion of the total gross profit to be recognized as income in 2010 is

• A)$150,000.
• B)$200,000.
• C)$600,000.
• D)$800,000.

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Definitions:

Building Capacity

The process of developing an organization's skills, resources, and abilities to perform effectively and to ensure its sustainability and growth over time.

Mission Statement

A concise explanation of an organization's purpose, outlining its aims, values, and direction.

Strategic Management

The field of management that involves setting objectives, analyzing the competitive environment, assessing internal organization, evaluating strategies, and ensuring that management rolls out the strategies across the organization.

Strategies

Plans of action designed to achieve a long-term or overall aim.