Question

When work on a contract is 100% complete, the
entire profit is transferred to
a. Notional profit account
b. Work in progress account
c. Reserve for contingencies account
d. Profit and loss account
Question 3​

Answer 1

Answer:

Notional profit is an estimate of earnings primarily used in the building and construction industry. It is used to smooth out fluctuations in reported revenue due to contracts that take a long time to complete.

Answer 2

Answer:

The correct option is a. Notional profit account.

Explanation:

• Basic aggregate statistics for macroeconomic study are national income accounts (NIAs).
• One of the most significant advances in applied economics at the beginning of the 20th century was the revolutionary creation of national income and NIA systems.
• NIAs provide quantitative macroeconomic modeling and analysis while also offering a quantitative framework for selecting and evaluating economic policy.
• NIAs do give a basis for the objective statement and assessment of economic policies, but they cannot replace policymakers' judgment or allow them to avoid making decisions.
• National income accounts can provide a measure of well-being through per capita income and its rise over time when combined with population data.

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