Multi-Storey Builders Ltd Had a Large Three-Year Project with Total

question 1

Multiple Choice

Multi-Storey Builders Ltd had a large three-year project with total revenue of $8 000 000 and estimated total costs of $6 500 000.The project was 20 per cent complete at the end of the first year,70 per cent complete at the end of the second year and 100 per cent complete at the end of the third year.Revenues and costs were as estimated.
-How much profit was earned during the first year if the percentage of completion method was used?

• A) $300 000
• B) $750 000
• C) $1 500 000
• D) $1 600 000

Know the primary roles and responsibilities of key financial positions in a corporation.

Comprehend the taxation differences between corporate and non-corporate entities.

Distinguish between ethical and unethical investment practices.

Recognize the significance of shareholder wealth maximization as the primary financial goal.

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Definitions:

Interest Rate

The proportion, in percentage, charged by a lender to a borrower for the use of assets, usually expressed on an annual basis.

Annual Interest

The amount of interest paid or earned over a one-year period, typically expressed as a percentage of the principal.

Graduate

The act of completing a course of study at a college or university, culminating in the receipt of a degree.

Discount Rate

This is the interest rate utilized in discounted cash flow analysis to assess the current value of future anticipated cash flows.