A $250,000 contract is 40 percent complete using cost-to-cost. How much revenue is earned under that percentage?
Correct Answer
B) $100,000.
Earned revenue is contract price times percent complete: $250,000 x 40 percent = $100,000.
Why This Is the Correct Answer
Earned revenue is contract price times percent complete: $250,000 x 40 percent = $100,000.
Why the Other Options Are Wrong
Option A: $62,500.
$62,500. is below the supported result for percent complete; it likely uses the wrong base, period, or account bucket.
Option C: $150,000.
$150,000. is above the supported result for percent complete; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $210,000.
$210,000. is above the supported result for percent complete; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Updating Earned money test: bucket before math for percent complete.
Reference Hint
Study anchor (closed-book): memorize Percent complete from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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