Answer:
The correct answer is Less than the estimated costs.
Explanation:
The percentage method completed is an accounting practice used to recognize income in long-term contracts.
When long-term projects (greater than one year) are undertaken, the costs and revenues associated with it are incurred throughout its life.
This accounting method, as its name suggests, allows the company to account for part of the associated income and expenses incurred as the project phases are completed. Thus, the percentage complete method is understood as a method of recognition of recognition of income and expenses that is applied continuously without having to defer income and expenses at the end of the project.
Answer:
b) The cost of the building will include the cost of replacing the roof.
Explanation:
As for the information provided,
We know that the capital expenditure is capitalized and that the revenue expenditure is provided in income statement.
The capital expenditure is added in the cost of fixed assets and then depreciated as part of it.
The entire replacement of roof will be a huge part of consideration of building, and is capital in nature. Thus, it shall be part of cost of building.
Remaining all expenses are not capital in nature.
Answer:
A credit to Cash of $299
Explanation:
Journal Entry Debit Credit
Merchandise inventory $62
Delivery charges $46
Office supplies $30
Miscellaneous expenses $51
Cash over and short
$100
Cash $299
Cash to be reimbursed = Minimum cash balance required - Cash balance left
Cash to be reimbursed = $500 - $201
Cash to be reimbursed = $299
The real interest rate given the nominal and inflation rate is -2 percent
<h3>How to calculate the real interest</h3>
The formula for calculating real interest given the nominal and inflation rate is expressed as:
Real interest rate ≈ nominal interest rate − inflation rate
Given the following
Real interest = 4%
inflation rate = 6%
Substituting into the formula
Real interest rate = 4% - 6%
Real interest rate = -2%
Then the real interest rate given the nominal and inflation rate is -2 percent
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Answer:
c) removing barriers to trade
Explanation:
removing barriers to trade is a goal of the globalization movement.