Exhibit 17-1 The Following Information Relates to a Project of the Cumberland

question 83

Multiple Choice

Exhibit 17-1
The following information relates to a project of the Cumberland Construction Company: The contract price was $1,200,000. Cumberland uses the cost-to-cost method of revenue recognition.
-Refer to Exhibit 17-1. Assume revenue in the amount of $200,000 was recognized in 2016. What amount of revenue would be recognized in 2017?

• A) $840,000
• B) $640,000
• C) $616,000
• D) $416,000

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Definitions:

Explanation Developed

A detailed account or interpretation of a concept, situation, or problem.

Routine Message

Regular, everyday communications that convey standard information or procedures.

Act Of Persuasion

The process of influencing someone's beliefs, attitudes, intentions, motivations, or behaviors through argument, reasoning, or appeal.

Explanation

The process of making something clear or understandable through detailed description or demonstration.