Assuming BCC Uses the Percentage-Of-Completion Method of Recognition the Gross

question 171

Multiple Choice

Assuming BCC uses the percentage-of-completion method of recognition the gross profit recognized in 2013 would be (rounded to the nearest thousand) :

• A)$6,000.
• B)$39,000.
• C)$42,000.
• D)$45,000.

---

Definitions:

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Interest

The cost of borrowing money, often expressed as a percentage of the amount borrowed, paid to the lender over a specified period.

Time-Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Money

Any item that is generally acceptable to sellers in exchange for goods and services.