When part of a progress payment for construction is withheld until final settlement of the contract, what account is credited?
A. Appropriations.
B. Contracts Payable-Retained Percentage.
C. Construction Expenditures.
D. Encumbrances.
Answer: B
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Which one of the following statements is true?
a. Accountants have developed methods which make assumptions concerning how costs should be assigned to inventory and cost of goods sold. b. Alternative inventory cost flow assumptions have the same effect on the amount of net income reported. c. Accounting standards require that merchandise costs be specifically traced to units left in inventory and to units that have been sold. d. The flow of inventory costs should match the physical flow of the merchandise.
The primary difference between ordinary and extraordinary repairs is that extraordinary repairs
a. are an expense of the current period. b. are periodic in nature. c. are necessary to maintain the asset in good operational condition. d. extend the useful life or increase the residual value of the asset.
During the 1992 Los Angeles urban uprising, many businesses in USC’s vicinity were devastated but the campus itself was spared. What may have contributed to USC’s campus being spared?
a. Many of the rioters attended the school and did not want to destroy it. b. USC had good relationships and a positive image in the local community. c. USC had extra security in place. d. Fortunately, the riot ended before it reached the campus.
Which of the following is assumed when considering the additivity feature of linear programming (LP) models?
a. The contribution of decision variables to the objective function is proportional. b. The contribution of decision variables to each resource is proportional. c. The contribution of each decision variable can be added to obtain the overall value of the objective function. d. All of the above are features of proportionality in LP.