Company x billed a client for 300000 for services

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Chapter 5 online quiz and CPAquestions.docx

Company X billed a client for $300,000 for services performed on a long-term construction contract in 2016. At the end of the year, Company X collected $200,000 in cash from the client. In 2017, Company X billed the client for $400,000, and received $200,000 in cash. In 2018, the final year of the contract, Company X billed the client for $300,000. How much cash should Company X collect fromthe client in 2018?A.$300,000B.$400,000C.$500,000D.$600,000
Company X recognized $1,200,000 in revenue under the percentage of completion method in 2016. Company X billed the client for $1,000,000, and collected $800,000. The cost of construction in 2016 was $700,000. What should Company X recognize as gross profit for 2016?
Which of the following is not a useful reference when analyzing financial ratios?
Company X sold a building for $1,200,000 on January 1, 2016. The client will make three equal payments of $400,000 plus interest on January 1 each year. The cost of the building was $800,000. What is the gross profit percentage that will be used in the installment sales method?
Which of the following ratios is not a component of the DuPont Framework?A.Receivables TurnoverB.Asset TurnoverC.Equity MultiplierD.Profit Margin
Which of the following accounts would be debited in the case of a periodic loss for a profitable project when revenue is recognized under the completed contract method?
Company X recognized $1,200,000 in revenue under the percentage of completion method in 2016. Company X billed the client for $1,000,000, and collected $800,000. The cost of construction in 2016 was $700,000. What should Company X recognize as gross profit for 2016?

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