Use the Information Below to Answer the Following Questions

question 42

Multiple Choice

Use the information below to answer the following questions:
The profit for a particular project of Blue Fin Ltd, using the percentage of completion method, was $470 000 for year 1 and $690 000 for year 2 (completion) .
-What difference would there be to the total profit for two years if the completion of production method were used?

• A) Profit would be $1 160 000 higher.
• B) Profit would be $690 000 higher.
• C) Profit would be $470 000 higher.
• D) There would be no difference.

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Definitions:

Internal Control

A system of policies, procedures, and measures designed to protect assets, ensure accurate financial reporting, compliance with laws and regulations, and achieve effective and efficient operations.

Safeguarded Assets

Assets that are protected against loss, theft, or unauthorized use through various security measures and controls.

Accurate Business Information

Reliable, precise, and up-to-date data or facts about a company's operations, financials, and strategy, crucial for decision-making.

Petty Cash Receipts

Documents that record cash payments from a petty cash fund, used to manage small and incidental expenses.