Under the Percentage of Completion Method, a Company Has Recognized

question 96

Essay

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. Calculate the percent of completion at the beginning of the current year.

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Definitions:

Enzymatic Reaction

A chemical process catalyzed by enzymes, speeding up reactions in the cells.

Reactants

Reactants are substances initially present in a chemical reaction that are consumed during the reaction to form products.

Substrates

In biochemistry, substrates are the specific substances on which an enzyme acts to catalyze a chemical reaction, often converted into products.

Triglycerides

A type of fat found in your blood, used by the body for energy and considered an important measure of heart health.