ACT191 Quiz 6 on Long-term construction contracts PDF

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ACT191 Quiz 6 on Long-Term ConstructionContracts3rd term, AY 20- 2111,Which of the following accounting changes shall be treated retrospectively insteadprospectively by the long-construction contractor?Required to answer. Single choice.(1/1 Point)Change from percentage of completion to cost recovery...

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ACT191 Quiz 6 on Long-Term Construction Contracts 3rd term, AY 20-21 11,

Which of the following accounting changes shall be treated retrospectively instead prospectively by the long-construction contractor?Required to answer. Single choice. (1/1 Point) Change from percentage of completion to cost recovery method or vice versa Change in the estimate of the outcome of the contract Change in construction revenue Change in the estimated costs to complete the contract Correct answers: Change from percentage of completion to cost recovery method or vice versa 22,

Calculate the gross profit to be reported in 2016 using the percentage of completion method.Required to answer. Single line text. (1/1 Point)

Correct Answer: 97,800 33,

How much is the Construction In Progress (CIP) account balance at December 31, 2018 using the percentage of completion method?Required to answer. Single line text. (1/1 Point)

Correct Answer: 575,000

44,

How much is the realized gross profit(loss) in 2018?Required to answer. Single line text.

(1/1 Point)

Correct Answer: (95,000) 55,

Determine the estimated cost to complete in 2016?Required to answer. Single line text. (1/1 Point)

Correct Answer: 1,700,000 66,

The amount collected from the client in 2018 amounted to:Required to answer. Single line text. (0/1 Point)

Correct answers: 6,650,000

77,

What is the percentage of completion in 2017 of this construction contract? (Round off 2 decimal places and insert % symbol to your answer, eg 25%)Required to answer. Single line text. (1/1 Point)

Correct Answer: 20% 88,

The recognized profit in 2018 using the POC Method is:Required to answer. Single line text. (1/1 Point)

Correct Answer: 62,500 99,

Revenue from Long Term Construction Contract is calculated or recognizedRequired to answer. Single choice. (1/1 Point) In reference to the billings made to the customer. By multiplying the contract price by the ratio of cost over the contract price. Dividing the contract price by the number of years of construction. After the facility was constructed and delivered to the customer because construction will qualify as revenue recognized “point in time” per IFRS 15. By multiplying the contract price by the percentage of completion using the expert estimates. Correct answers: By multiplying the contract price by the percentage of completion using the expert estimates. 1010,

The following costs shall be capitalized as part of construction in progress or contract costs, exceptRequired to answer. Single choice. (1/1 Point) Costs that re specifically chargeable to the customer under the terms of the contract may include some general administration costs and development costs for which reimbursement is specified in the terms of the contract. General and research and development costs for which reimbursement is not specified in the contract. Costs of hiring and moving of plant and equipment to and from the contract site Systematically, rationally and consistently allocated construction overheads and borrowing costs. Correct answers: General and research and development costs for which reimbursement is not specified in the contract. 1111,

A contract specifically negotiated for the construction of an asset or a combination of assets

that are closely interrelated or interdependent in terms of their design, technology and function or their ultimate purpose or use.Required to answer. Single choice....