{"id":43550,"date":"2024-04-15T21:31:03","date_gmt":"2024-04-15T21:31:03","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=43550"},"modified":"2024-04-15T21:31:03","modified_gmt":"2024-04-15T21:31:03","slug":"when-the-completion-stage-of-the-contract-is-more-than-half-the-profit-to-be-credited-to-profit-and-loss-account-will-be-equal-to","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/when-the-completion-stage-of-the-contract-is-more-than-half-the-profit-to-be-credited-to-profit-and-loss-account-will-be-equal-to\/","title":{"rendered":"When the completion stage of the contract is more than half, the profit to be credited to Profit and Loss account will be equal to . . . . . . . ."},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a96ee6a16b89\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    $${\frac{1}{3}^{{\text{rd}}}}{\text{of Notional Profit}} \times \frac{{{\text{Cash received}}}}{{{\text{Work certified}}}}$$                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    $${\frac{1}{2}^{{\text{nd}}}}{\text{of Notional Profit}} \times \frac{{{\text{Cash received}}}}{{{\text{Work certified}}}}$$                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    $${\frac{2}{3}^{{\text{rd}}}}{\text{of Notional Profit}} \times \frac{{{\text{Cash received}}}}{{{\text{Work certified}}}}$$                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    $${\text{Full Notional Profit}}$$                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>B. $\\frac{1}{2}^{{\\text{nd}}}{\\text{of Notional Profit}} \\times \\frac{{{\\text{Cash received}}}}{{{\\text{Work certified}}}}$<\/strong><\/p>\n<p>The percentage of profit to be recognized on a construction contract is based on the percentage of work completed. When the completion stage of the contract is more than half, <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> the profit to be credited to Profit and Loss account will be equal to one-half of the notional profit, multiplied by the ratio of cash received to work certified.<\/p>\n<p>Notional profit is the estimated profit on the contract, based on the contract price and the estimated costs to complete the contract. Cash received is the amount of money that has been paid to the contractor for work that has been completed. Work certified is the amount of work that has been completed and certified by the owner.<\/p>\n<p>The percentage of profit to be recognized is calculated as follows:<\/p>\n<p>Percentage of profit to be recognized = (Percentage of work completed) x (Notional profit) \/ (Estimated costs to complete)<\/p>\n<p>When the completion stage of the contract is more than half, the percentage of work completed is greater than 50%. Therefore, the percentage of profit to be recognized is equal to one-half of the notional profit, multiplied by the ratio of cash received to work certified.<\/p>\n<p>For example, if the notional profit is $100, the estimated costs to complete are $80, the cash received is $60, and the work certified is $70, then the percentage of profit to be recognized is equal to:<\/p>\n<p>Percentage of profit to be recognized = (Percentage of work completed) x (Notional profit) \/ (Estimated costs to complete)<\/p>\n<p>= (100\/100) x ($100) \/ ($80)<\/p>\n<p>= $12.50<\/p>\n<p>The profit to be credited to Profit and Loss account is equal to the percentage of profit to be recognized, multiplied by the cash received. In this example, the profit to be credited to Profit and Loss account is equal to:<\/p>\n<p>Profit to be credited to Profit and Loss account = Percentage of profit to be recognized x Cash received<\/p>\n<p>= $12.50 x $60<\/p>\n<p>= $75.00<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>When the completion stage of the contract is more than half, the profit to be credited to Profit and Loss account will be equal to . . . . . . . .<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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