Recognizes profit on a long-term construction contract as it is earned gradually during the construction period. This approach is referred over the completed contract method because it does a better job of matching revenue and expense in the period of benefit. It should be used when reliable estimates of the degree of completion are possible. It is more realistic and levels out the earnings.
Percentage of monthly gross income rule
Rule stating that the monthly mortgage payment, property taxes and insurance should not exceed 25% of a family's monthly gross income, or about 35% for a Federal Housing Administration (FHA) or Veterans Administration (VA) mortgage.
Percentage rent
Rent payable under a percentage lease. Typically the percentage applies to sales in excess of a pre-established base amount of the dollar sales volume.
Perch
(1) Land surveying measurement that is 16.5 feet in length, or 51Ú2 yards. A perch is also called a rod or a pole. Today the term perch is seldom used: however, it is found in old deeds, surveys, and contracts. (2) Stone measurement equal to 16 1Ú2 x 1 1Ú2 x 1 ft, which is 24 3Ú4 cubic feet, used for stone stair steps.
Percolate
To pass a liquid gradually through small spaces or a porous substance.
Percolation test
Test which is used to determine how well soil will accommodate a septic system, by judging how well liquid passes through the soil. Commonly referred to as a "perc test".
Percussion welding
Electric resistance welding, usable on small flat surfaces, where the electrical current is passed, rapidly between the pieces to be welded, to heat them to the needed temperature, with the rapid force being applied during or directly after the electrical current to bond the surface with only a thin layer of bond.
Perennial
Plant that blooms actively throughout the entire year or blooms year after year.
Perfboard
Sheet of compressed fiberboard that has small, evenly spaced holes for pegs, hooks or hangers and is used to store tools, etc.
Perfluorocarbon tracer gas technique (pft)
An air infiltration measurement technique developed by the Brookhaven National Laboratory to measure changes over time (one week to five months) when determining a building's air infiltration rate. This test cannot locate exact points of infiltration, but it does reveal long-term infiltration problems.
