Which of the Following Is the Type of Contract That

question 59

Multiple Choice

Which of the following is the type of contract that pays the provider an amount that covers the provider's actual costs plus an additional amount?

• A)Material contract
• B)Cost-reimbursable contract
• C)Fixed-price contract
• D)Time contract

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Definitions:

Available-For-Sale Security

A financial investment not classified as held-for-trading or held-to-maturity, which can be sold in the short term for cash.

Fair Value

An estimate of a security's worth on an open market, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller.

Adjusting Entry

These are journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Bonds Pay Interest

A statement indicating that bond issuers periodically make interest payments to bondholders.