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Problem 1: Which of the following shall be excluded in the contract costs of a construction contract?
a. Costs that directly relate to the specific contract
b. Selling costs such as advertisement expense or commissions of real estate agents or brokers
c. Costs that are directly attributable to contract activity in general and can be allocated to the contract
d. Such other costs as are specifically chargeable to the customer under the terms of the contract
Problem 2: Percentage of Completion is favored to be used under the following circumstances, except
a. Contract Price is assured
b. Contract Costs can be reliably estimated
c. Progress Billings is assured of collection
d. Performance obligation can be reliably measured
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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