Earned revenue is $128,000 and billings to date are $118,000. What is the position?
Correct Answer
D) $10,000 underbilled.
Earned revenue exceeds billings by $10,000, so the job is underbilled.
Why This Is the Correct Answer
Earned revenue exceeds billings by $10,000, so the job is underbilled.
Why the Other Options Are Wrong
Option A: $10,000 overbilled.
$10,000 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: $118,000 earned.
$118,000 earned. is above the supported result for underbilling calculation; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $128,000 cash.
$128,000 cash. is above the supported result for underbilling calculation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Underbilling scale: compare earned side to billed side before naming 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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