34、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. A company entered into a three-year construction project with a total contract price of $5.3 million and expected cost of $4.4 million. The following table provides cash flow information relating to the contract: Year 1 Year 2 Year 3 Costs incurred and paid $600,000 $3,000,000 $800,000 Amounts billed and payments received $1,200,000 $2,800,000 $1,300,000 What is the cumulative effect of the contract on the cash balance that would have been recorded on the company's balance sheet at the end of Year 2 using the: percentage-of-completion method? completed contract method? A. $400,000 $0 B. $400,000 $400,000 C. $2,800,000 $0 D. $2,800,000 $400,000 A. Answer A B. Answer B C. Answer C D. Answer D
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发表于 2008-11-5 16:59
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