Question

cash received is equal to
a)work certified- retention money
b)contract price- work certified
c)work certified + work uncertified
d)contract price​

Answer 1

Answer:

a) Work certified - retention money

Answer 2

Answer:

a) work certified- retention money

Cash received is equal to work certified- retention money.

Explanation:

Retention Money is a typical practice not to pay for everything for work certified. The contractee may pay a decent rate, say 80% or 90% of the work certified, contingent on the provisions of the contract. This is known as the Cash Ratio.

Work Certified- This is that piece of the work-in-progress that has been endorsed by the contractee's planner or specialist for instalment. Work certified is esteemed at contract cost (i.e, selling cost), and incorporates a component of the benefit.

• In the contract, the beneficiaries are equivalent to the work that is certified, the retention money is equivalent to the amount of the instalments in overabundance of the work that has been certified.
• Running against the norm, it is feasible to make a contract that doesn't ensure a specific measure of benefit. This should be possible through an expense sharing plan that requires the client to share the expense of the item. The actual item is generally sold at a reliable cost.
• Retention money isn't really a benefit however is the money the organization pays or saves a store for another client. In this model, $1000 retention money is equivalent to $1000 procured from another client.
• In Contract, the cash received from work certified isn't kept by the certified individual, as such the individual certifies work in Contract and gets a level of the money received as a retention charge; the certified individual then deducts this sum from the cash received.