QUESTIONS 45 THROUGH 68 RELATE TO FINANCIAL STATEMENT ANALYSIS

45. - MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013
MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013
45. A company entered into a three-year construction project with a total contract price (all figures in ‘000s) of $5,300 and expected costs of $4,400. The company recognizes revenue using the percentage of completion method. The data below relate to the contract. (All figures in ‘000s) Year 1 Year 2 Year 3 Costs incurred and paid $1,200 $2,000 $1,200 Amounts billed and payments received $800 $3,000 $1,500 The amount of revenue (in $‘000s) the company will recognize in Year 2 is closest to: A. 1,766. B. 2,409. C. 3,000.