A construction company has the following data concerning one of its contracts. £m Contract price 2.00 Value certified 1.30 Cash received 1.20 Costs incurred 1.05 Cost of work certified 1.00 The company estimates the attributable profit on contracts based on the proportion of the value of work certified that has been paid by the client. The profit to be attributed to the contract is A £272,485 B £274,586 C £276,923 D £280,410
A construction company has the following data concerning one of its contracts. £m Contract price 2.00 Value certified 1.30 Cash received 1.20 Costs incurred 1.05 Cost of work certified 1.00 The company estimates the attributable profit on contracts based on the proportion of the value of work certified that has been paid by the client. The profit to be attributed to the contract is A £272,485 B £274,586 C £276,923 D £280,410
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A construction company has the following data concerning one of its contracts.
£m
Contract price 2.00
Value certified 1.30
Cash received 1.20
Costs incurred 1.05
Cost of work certified 1.00
The company estimates the attributable profit on contracts based on the proportion
of the value of work certified that has been paid by the client.
The profit to be attributed to the contract is
A £272,485
B £274,586
C £276,923
D £280,410
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education