A Project Was Correctly Accounted for Under the Percentage-Of-Completion Method

question 112

Multiple Choice

A project was correctly accounted for under the percentage-of-completion method. At the end of the project, the Construction-in-Process account includes total debits and credits of $ 3,500,000. Assuming that total gross profit of $ 1,200,000 was recognized throughout the contract, total construction costs were

• A) $ 4,600,000.
• B) $ 3,500,000.
• C) $ 2,300,000.
• D) $ 2,100,000.

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Definitions:

Crisis Intervention

Immediate and short-term psychological care aimed at assisting individuals in a crisis situation to restore equilibrium to their biopsychosocial functioning and to minimize potential psychological trauma.

Traumatic Events

Incidents that cause psychological, physical, or emotional harm or distress, often overwhelming an individual’s ability to cope.

Subjective Distress

The personal experience of discomfort, suffering, or pain, which can vary greatly between individuals and is not always visible or measurable by others.

Trauma Reactions

The emotional, psychological, and physical responses that occur after experiencing or witnessing a distressing event.