Billings to date are $176,000 and earned revenue is $158,500. What is the overbilling amount?
Correct Answer
A) $17,500.
Overbilling is billings minus earned revenue: $176,000 - $158,500 = $17,500.
Why This Is the Correct Answer
Overbilling is billings minus earned revenue: $176,000 - $158,500 = $17,500.
Why the Other Options Are Wrong
Option B: $12,500.
$12,500. is below the supported result for overbilling calculation; it likely uses the wrong base, period, or account bucket.
Option C: $18,500.
$18,500. is above the supported result for overbilling calculation; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $334,500.
$334,500. is above the supported result for overbilling calculation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Billing position memory for overbilling: earned floor, billed tilt.
Reference Hint
Study anchor (closed-book): memorize Overbilling 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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