For Cost Estimates,when Project Bidding Is Used,underestimating the Cost of a Job

question 61

Multiple Choice

For cost estimates,when project bidding is used,underestimating the cost of a job results in _____.

• A)bids that are too low
• B)probability of losing money
• C)higher probabilities of the bid being accepted
• D)both a and b
• E)all of the above

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Definitions:

Available-for-sale Securities

Financial assets that are bought with the intention of selling before their maturity date, but not classified as held-for-trading or held-to-maturity investments.

Stockholders' Equity

It represents the ownership interest of shareholders in the assets of a company, after deducting liabilities.

Income Statement

A financial statement that shows a company's revenue, expenses, and profits over a specific period of time.

Available-for-sale Securities

Financial assets that are neither held for trading nor intended to be held to maturity, and can be sold in response to needs for liquidity or changes in interest rates.