At the End of Year 2, the Accounting Records for a Multi-Year

question 25

Multiple Choice

At the end of year 2, the accounting records for a multi-year construction project indicate actual costs incurred to-date, and most recent estimate of total cost of $3.2 Mill and $9.5 Mill respectively.Assuming the percentage-of completion method is used, at the end of year 2 the project is

• A)33.7% complete
• B)31.2% complete
• C)26.1% complete
• D)none of these

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Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Outstanding Common Shares

The total number of shares of common stock that are currently owned by investors, including shares held by institutional investors and restricted shares held by insiders and company officers.

Noncontrolling Interest

The portion of equity in a subsidiary not attributable, directly or indirectly, to a parent company, which reflects the interests of minority shareholders in the consolidated financial statements.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from the total revenue.