VA CONTRACTORS: VA ADVANCED (CLASS A) QUESTIONS WITH COMPLETE SOLUTIONS
A lump sum contract on a project has a total contract price of $160,000. Retainage has been held back
at 10%. The contractor has received progress payments for 75% of the project. The contractor submits a
request for final payment for the new completed project. The final payment amount should be for... -
(ANSWER)More than $50,000
What is the total value of current assets for an accrual basis company that has the following? Checking
account cash balance is $4,800; materials inventory for work-in-progress is $4,200; a pick-up truck that
cost $12,460- paid for with $2,460 in cash and a note for $10,000- and is used 100% in the business;
accounts receivable is $5,700; suppliers' accounts payable is $6,300; other accounts payable is $2,200;
and quarterly income tax payment due is $1,180... - (ANSWER)Between $12,000 and $16,000
What is the total project overhead for a project that lasts 3 months and has the following costs? Labor is
$4,000; materials are $9,500; equipment rentals are $1,200; superintendent's annual salary is $36,000;
office rent is $800 per month; and office utilities are $375 per month. - (ANSWER)Less than $12,000
For 1 month a company bills out $38,000 in completed work, and receives $22,000 in payments plus
$8,000 from the previous month's billings. They pay their total bill of $26,000 to supply houses for this
month's purchases, and another $5,000 to supply houses for last month's purchases. Using a cash
accounting method and NOT considering any other revenue or expenses, what is the company's net
income for the month? - (ANSWER)Loss of $1,000
The owner requests for change which will cost the contractor $15,000 in labor and materials and $2,250
in overhead costs. With the change, the contractor would be relieved of $18,000 in labor and materials
costs, and $2,400 in overhead costs from the original contract. The original bid included profit of 20% of
all costs. The contractor wants to make a profit of 20% of all costs on the changes. The adjusted contract
price for the change order should be... - (ANSWER)A decrease of $3,780
Which of the following would typically be covered by a contractor's comprehensive general liability
insurance policy? - (ANSWER)Damage to adjoining property from a crane accident
What is the total gross compensation and employment status for a carpenter, given the following
information? A contractor hires a carpenter to do the finish work for a 10-home project. The carpenter
is to be paid $16 per hour. The contractor provides all materials and equipment, such as a table saw. The
carpenter provides all of his own hand tools. The contractor and the carpenter agree that all of the
homes are to be completed within 60 8-hour working days, without overtime. The contractor provides
the carpenter with a schedule of the order in which homes are to be worked on. The contractor provides
a helper to assist the carpenter. The contractor sets the work schedule each day. The carpenter spends
A lump sum contract on a project has a total contract price of $160,000. Retainage has been held back
at 10%. The contractor has received progress payments for 75% of the project. The contractor submits a
request for final payment for the new completed project. The final payment amount should be for... -
(ANSWER)More than $50,000
What is the total value of current assets for an accrual basis company that has the following? Checking
account cash balance is $4,800; materials inventory for work-in-progress is $4,200; a pick-up truck that
cost $12,460- paid for with $2,460 in cash and a note for $10,000- and is used 100% in the business;
accounts receivable is $5,700; suppliers' accounts payable is $6,300; other accounts payable is $2,200;
and quarterly income tax payment due is $1,180... - (ANSWER)Between $12,000 and $16,000
What is the total project overhead for a project that lasts 3 months and has the following costs? Labor is
$4,000; materials are $9,500; equipment rentals are $1,200; superintendent's annual salary is $36,000;
office rent is $800 per month; and office utilities are $375 per month. - (ANSWER)Less than $12,000
For 1 month a company bills out $38,000 in completed work, and receives $22,000 in payments plus
$8,000 from the previous month's billings. They pay their total bill of $26,000 to supply houses for this
month's purchases, and another $5,000 to supply houses for last month's purchases. Using a cash
accounting method and NOT considering any other revenue or expenses, what is the company's net
income for the month? - (ANSWER)Loss of $1,000
The owner requests for change which will cost the contractor $15,000 in labor and materials and $2,250
in overhead costs. With the change, the contractor would be relieved of $18,000 in labor and materials
costs, and $2,400 in overhead costs from the original contract. The original bid included profit of 20% of
all costs. The contractor wants to make a profit of 20% of all costs on the changes. The adjusted contract
price for the change order should be... - (ANSWER)A decrease of $3,780
Which of the following would typically be covered by a contractor's comprehensive general liability
insurance policy? - (ANSWER)Damage to adjoining property from a crane accident
What is the total gross compensation and employment status for a carpenter, given the following
information? A contractor hires a carpenter to do the finish work for a 10-home project. The carpenter
is to be paid $16 per hour. The contractor provides all materials and equipment, such as a table saw. The
carpenter provides all of his own hand tools. The contractor and the carpenter agree that all of the
homes are to be completed within 60 8-hour working days, without overtime. The contractor provides
the carpenter with a schedule of the order in which homes are to be worked on. The contractor provides
a helper to assist the carpenter. The contractor sets the work schedule each day. The carpenter spends
