Choose the Correct Description of the Net Balance of Costs

question 74

Multiple Choice

Choose the correct description of the net balance of costs in excess of billings on long-term contracts. Assume only one current contract, and that contract price does not equal total estimated contract cost at the end of the current year.

• A) Under completed contract, the balance equals cost plus billings.
• B) Under completed contract, the balance equals total estimated profit less billings.
• C) Under percentage of completion, the balance equals cost to date less billings, if profit has been recognized.
• D) Under percentage of completion, the balance equals cost to date less billings, less total projected loss.

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Definitions:

Polling

Polling refers to the process of conducting surveys to collect information or opinions from a selected group of individuals, often used in market research, politics, and social science.

Bid Price

The highest price a buyer is willing to pay for a security or commodity.

Gross Trading Profit

The total profit from trading activities before deducting expenses and taxes.

Inside Quotes

The highest bid and lowest ask prices among all market makers in a particular stock, representing the most competitive prices at which you can buy or sell.