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Supplementary objective test questions

10.3 A construction contract is in its early stages and the overall outcome is
uncertain. Surveyors estimate that the work is 5% complete. Costs incurred to
date are $100,000 and 50% of the costs are deemed to be recoverable from the
customers. The total contract price is $3,000,000.

Which of the following statements is true regarding the accounting
treatment of this contract as per IAS 11?

A Revenue of $150,000 will be recorded in the SOPL

B Revenue of $100,000 will be recorded in the SOPL

C Revenue of $50,000 will be recorded in the SOPL

D No revenue should be recorded for this contract

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