When a Building Contractor Has Substantially Performed a Contract to Construct

question 32

True/False

When a building contractor has substantially performed a contract to construct a building, the contractor is entitled to recover the full contract price.

Understand the concepts of payroll taxes and employee net pay calculation, including FICA, FUTA, SUTA taxes, and payroll deductions.

Learn to record business transactions related to sales taxes collected and remitted to the state.

Distinguish between current and long-term liabilities on the balance sheet.

Recognize the use and importance of a payroll bank account in managing payroll transactions.

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Definitions:

LIFO Reserve

A contra-asset for the excess of FIFO over LIFO inventory.

FIFO Costing

An inventory valuation method stating that the oldest inventory items are sold first, with costs of the oldest items being used to calculate profit.

Ending Inventory

The value of goods available for sale at the end of an accounting period.

LIFO Reserve

The difference between the cost of inventory calculated using the Last-In, First-Out method and the First-In, First-Out method.