On 1 January 2014,Peter Ltd Signed a Contract Worth $64

question 32

Multiple Choice

On 1 January 2014,Peter Ltd signed a contract worth $64 000 000 to construct the Cycling Stadium.The stadium was to be built over three years,with progress payments as follows: Estimated costs were $50 000 000.The project was 35 per cent complete at the end of 2014,75 per cent complete at the end of 2015 and 100 per cent complete at the end of 2016.Revenues and costs were as estimated
-How much profit was earned during 2015 if the percentage of completion method was used?

• A) $5 600 000
• B) $4 375 000
• C) $3 500 000
• D) $10 500 000

Differentiate between temporary and permanent accounts and their roles in the financial statements.

Understand the impact of errors in extending account balances on financial statements.

Comprehend the use and effects of different types of inventory systems on accounting and reporting.

Distinguish between debit and credit balances in the adjusted trial balance and their implications for financial statements.

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Definitions:

Cardiac Pacemaker

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Long-Term Use

The extended usage of a product or medication over a significant period, which may lead to dependency or side effects.