In the deck repair file, earned revenue is $180,000, but billings to date are $150,000. What is the billing position?
Correct Answer
D) $30,000 underbilled.
Earned revenue exceeds billings by $30,000, so the job is underbilled by $30,000.
Why This Is the Correct Answer
Earned revenue exceeds billings by $30,000, so the job is underbilled by $30,000.
Why the Other Options Are Wrong
Option A: $30,000 overbilled.
$30,000 overbilled. is not aligned with the supported result for underbilling calculation; it has the wrong label or classification even if the number looks close.
Option B: $150,000 over cost.
$150,000 over cost. is above the supported result for underbilling calculation; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $180,000 cash collected.
$180,000 cash collected. is above the supported result for underbilling calculation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Billing position memory for underbilling: earned floor, billed tilt.
Reference Hint
Study anchor (closed-book): memorize Underbilling calculation 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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