49. A company uses the percentage-of-completion method to recognize revenue from its long
term construction contracts and estimates percent completion based on expenditures
incurred as a percentage of total estimated expenditures. A three-year contract for €10
million was undertaken with a 30% gross profit anticipated. The project is now at the
end of its second year, and the following end-of-year information is available:
Year 1 Year 2
Costs incurred during year €3,117,500 €2,582,500
Estimated total costs 7,250,000 7,600,000
The gross profit recognized in year 2 is closest to:
A. €617,500.
B. €880,000.
C. €960,000.
By accessing this mock exam, you agree to the following terms of use: This mock exam is provided to currently-
registered CFA candidates. Candidates may view and print the exam for personal exam preparation only. The
following activities are strictly prohibited and may result in disciplinary and/or legal action: accessing or permitting
access by anyone other than currently-registered CFA candidates; copying, posting to any website, emailing,
distributing and/or reprinting the mock exam for any purpose.
Bạn đang xem 49. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM MORNING 2011
