Under the Percentage-Of-Completion Method, a Company Has Recognized $40,000 of Profit

question 141

Multiple Choice

Under the percentage-of-completion method, a company has recognized $40,000 of profit through to the beginning of the current year on a contract, and total estimated contract cost is $500,000 at that time. The contract price is $800,000. What is the percent of completion at the beginning of the current year?

• A) 13.33%
• B) 15.8%
• C) 8%
• D) Insufficient data

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Definitions:

Psychological Thought

The theories, principles, and concepts that form the basis of psychology as a scientific discipline.

Functionalism

A theoretical framework in sociology and anthropology that explains social institutions and structures by the role they play in society.

Adapt to Environment

The process by which organisms adjust and change in response to their external environment.

Psychology

The scientific study of the mind and behavior, encompassing various aspects of conscious and unconscious experience.