Given the Following Data for a Firm Which Uses the Percentage

question 137

Multiple Choice

Given the following data for a firm which uses the percentage of completion method on long-term construction contracts, determine the ending balance of the account which is the net of Construction- in-Process, and Billings on Contracts, at the end of Year 1, the first year of this project. Costs incurred = $20,000
Billings = $26,000
Cash collected = $15,000
Estimated remaining cost to complete, as of 12-31-2001 = $30,000
Contract price = $60,000

• A) Costs in excess of billings $5,000
• B) Billings in excess of costs $2,000
• C) Costs in excess of billings $14,000
• D) Billings in excess of costs $667

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Definitions:

Precontemplation Stage

A stage in behavior change models describing individuals not yet acknowledging a need for change.

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The process of achieving greater freedom or rights for a group within society, often related to overcoming oppression or discrimination.

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A return to substance use or problematic behavior after a period of abstinence or improvement.

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A cognitive-behavioral strategy aimed at teaching individuals who are recovering from addictive behaviors how to anticipate and cope with the potential for relapse.