In 2020, Pop Construction Corp Pop Uses the Percentage-Of-Completion Method

question 55

Multiple Choice

In 2020, Pop Construction Corp. began work on a contract for $ 3,700,000. Other details follow: $\begin{array}{llcc}&\underline{2020}\\ \text {Costs incurred during the year } &\$1,800,000 \\ \text { Estimated costs to complete as of December 31 } &1,200,000\\ \text {Billings during the year } &1,650,000\\ \text { Collections during the year } &975,000\\\end{array}$

Pop uses the percentage-of-completion method. For calendar 2020, Pop should report gross profit of

• A) $ 150,000.
• B) $ 420,000.
• C) $ 700,000.
• D) $ 2,220,000.

Distinguish between equity and debt securities and their impact on financial statements.

Describe the impact of investment activities on cash flows and financial ratios.

Know the accounting treatments for interest and dividends received from investments.

Recognize the effect of foreign exchange rates on international investments.

---

Definitions:

Tuning Fork Test

The Tuning Fork Test is a clinical test used to assess hearing and vibratory sensation, often used in diagnosing nerve injury or hearing loss.

Frequency Test

An analysis designed to determine the distribution of frequencies of different outcomes in a set of data.

Pure Tone Hearing Test

An audiological exam used to measure hearing sensitivity at various frequencies, helping diagnose the degree and type of hearing loss.

Tuning Fork Test

A diagnostic test utilized in audiology to assess hearing loss using the vibrations from a tuning fork.