VA Contractors VA Advanced (Class A)
Questions and Answers
1.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
2.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
3.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
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, 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
4.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
5.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
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Questions and Answers
1.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
2.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
3.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
1/
8
, 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
4.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
5.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
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