Multi-Storey Builders Ltd Had a Large Three-Year Project with Total

question 31

Multiple Choice

Multi-Storey Builders Ltd had a large three-year project with total revenue of $8 000 000 and estimated total costs of $6 500 000.The project was 20 per cent complete at the end of the first year,70 per cent complete at the end of the second year and 100 per cent complete at the end of the third year.Revenues and costs were as estimated.
- How much profit was earned during the second year if the percentage of completion method was used?

• A) $300 000
• B) $750 000
• C) $1 050 000
• D) $0

Evaluate the legal remedies available for breaches of partnership duties.

Understand the conditions under which partners can be held liable for the actions of their co-partners.

Distinguish between the rights and obligations of partners within different types of partnerships.

Comprehend the role of partnership agreements in shaping partner obligations and liabilities.

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Definitions:

Effective Annual Rate

The interest rate on a loan or investment, adjusted for the effect of compounding over a one-year period.

Par

The face value of a bond or other financial instrument, which is the amount to be paid to the holder at maturity.

HPR

Holding Period Return, a measure of the total return received from holding an asset or portfolio of assets over a specified period of time.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash payments or additional shares.