Use the Information Below to Answer the Following Questions

question 51

Multiple Choice

Use the information below to answer the following questions:
Multi-Storey Builders Ltd had a large 3-year project with total revenue of $8 000 000 and estimated total costs of $6 500 000. The project was 20% complete at the end of the first year, 70% complete at the end of the second year, and 100% complete at the end of the third year. Revenues and costs were as estimated.
-What profit was earned during the third year if the percentage of completion method was used?

• A) $450 000
• B) $750 000
• C) $1 500 000
• D) $240 000.

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Definitions:

Active Learning

A teaching method that involves engaging students in the learning process directly through activities and/or discussion in class, rather than passively listening to an expert.

Cognitive Objectives

Goals related to the development of intellectual skills and knowledge.

Teaching-Learning Activity

Any task or project designed to facilitate the acquisition of knowledge, skills, or competencies through instruction, study, or experience.

Application of Knowledge

The use of acquired information and insights in practical situations to solve problems or create value.