Algae Builds Large Ships and Uses the Percentage of Completion

question 57

Multiple Choice

Algae builds large ships and uses the percentage of completion method of revenue recognition. The following information pertains to the construction contracts it had in place as of its December 31, 2012 year-end. How much revenue will Algae recognize in 2011?

• A)$260 million
• B)$325 million
• C)$433 million
• D)$1,300 million

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Definitions:

Sternberg

Refers to Robert Sternberg, a psychologist known for his theory on the triarchic theory of intelligence which includes analytical, creative, and practical components.

Practical Intelligence

The ability to solve everyday problems through the application of knowledge acquired from experience.

Analytical Intelligence

Part of Sternberg’s Triarchic Theory of Intelligence, focusing on the ability to analyze, evaluate, judge, compare, and contrast.

Creative Intelligence

The aspect of intelligence that involves the capacity to be flexible, innovative, and inventive in thinking.