If the contract is 50% complete, which of the following amount of profit is normally credited?

50% of the estimated profit
Estimated profit amount
Two-third of the profit earned multiplied by cash ratio
None of these

The correct answer is: A. 50% of the estimated profit.

The estimated profit is the amount of profit that a company expects to make on a project. The estimated profit is calculated by taking the total revenue that the company expects to generate from the project and subtracting the total costs that the company expects to incur.

When a contract is 50% complete, the company has already incurred 50% of the costs and has generated 50% of the revenue. Therefore, the company can expect to make 50% of the estimated profit.

Option B is incorrect because it does not take into account the costs that the company has already incurred. Option C is incorrect because it does not take into account the revenue that the company has already generated. Option D is incorrect because it is not a valid option.

Here is a more detailed explanation of each option:

Option A: 50% of the estimated profit. This is the correct answer because it takes into account both the costs that the company has already incurred and the revenue that the company has already generated.

Option B: Estimated profit amount. This is incorrect because it does not take into account the costs that the company has already incurred. The company may have incurred more or less costs than it expected, so the estimated profit amount may not be accurate.

Option C: Two-third of the profit earned multiplied by cash ratio. This is incorrect because it does not take into account the revenue that the company has already generated. The company may have generated more or less revenue than it expected, so the profit earned may not be accurate.

Option D: None of these. This is incorrect because it is not a valid option.

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