On 1 January 2015,Romulus Ltd Signed a Contract Worth $21

question 24

Multiple Choice

On 1 January 2015,Romulus Ltd signed a contract worth $21 000 000 to construct a light rail from A to B.The light rail was to be built over three years,with progress payments of $7 000 000 to be made at the end of each year.Estimated costs were $15 000 000 and the following costs incurred and paid by Romulus Ltd were in accordance with estimates and represented the percentage completed in each year: The project was completed in December 2017.
-Using the percentage of completion method,what profit would Romulus Ltd report in 2017?

• A) $7 000 000
• B) $6 000 000
• C) $800 000
• D) $280 000

Comprehend how to use positive messaging as an opportunity for resale or reinforcing business relationships.

Know how to properly close routine replies or positive messages, including specifying any follow-up actions.

Grasp the importance of asking for permissions in professional contexts, such as using someone as a job reference or requesting recommendation letters.

Understand the effectiveness of direct and indirect communication approaches in business messages.

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Definitions:

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity (Assets = Liabilities + Owner's Equity).

Asset

Resources owned by a company that have economic value and can provide future benefits, such as cash, inventory, and equipment.

Liability

A liability refers to financial obligations or debts that a company owes and is required to repay in the future.

Accounting Equation

The fundamental equation of accounting, Assets = Liabilities + Shareholder's Equity, representing the relationship between a company's resources and claims against those resources.