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:

Theory

A set of principles on which the practice of an activity is based.

Timeline

A visual representation or chronological sequence of events, used to track the progression and milestones within a particular period or project.

Depleted

Reduced in quantity, intensity, or strength; exhausted of resources or contents.

Gratitude

The quality of being thankful; readiness to show appreciation for and to return kindness.