Page 38 - CFA Lecture Day 8 Slides
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Session Unit 7:
                                                                   24. Understanding Income Statements (B/A/A/A/C/C/B)




















                                                         tanties














                                                                                     • $24,000 / $60,000 = 40% of the project completed.
                                                                                     • 40% of $100,000 = $40,000 revenue.
                                                                                     • $40,000 revenue – $24,000 cost = $16,000 profit for the period.
                                                                                     • No profit would be reported in the first year using the
                                                                                        completed contract method
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