If a contract is almost complete, the amount of profit generally transferred to profit and loss account is equal to —

CS Executive · Cost and Management Accounting · PYQS · December 2015
If a contract is almost complete, the amount of profit generally transferred to profit and loss account is equal to —
(A) Estimated profit × Work certified/Contract price
(B) Cash received/Work certified
(C) Notional profit × Estimated profit/Work certified
(D) Notional profit × Contract price/Work certified.

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Contract Costing

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