Business FinancesQuestion 50 of 1605
A contractor uses the percentage-of-completion method for revenue recognition. If a job is 40% complete and the total contract value is $200,000, recognized revenue to date is:
a.$40,000
b.$80,000
c.$120,000
d.$200,000
Explanation
Under percentage-of-completion, revenue = contract value × percentage complete = $200,000 × 40% = $80,000. This method matches revenue to the work actually performed.
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