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

Question

Quizplus · Accepted Answer

The correct formula for the amount of profit generally transferred to the profit and loss account when a contract is almost complete is C) Estimated profit*(Work certified/Contract price). This formula calculates the proportion of the estimated total profit that should be recognized based on the proportion of work certified (completed and approved) relative to the total contract price.

If the Contract Is Almost Complete, the Amount of Profit