CEM 100 Study Guide Questions with Correct
Answers
The method for calculating depreciation method is
straightline depreciation
Concerning "back-end loading" practices by owners, examples of "back-end loading"
would include all of the following except
billings in excess of actual costs
Concerning financial analysis, an example of a liquidity ratio would be
current ratio
A_____ is a right created by law to secure payment for work performed and materials
furnished in the improvement of real property, that is, land and improvement on
mechanics lien
In calculating the acid-test for a firm, the calculation would subtract
out_______determining the ratio.
cash
A____is defined as a schedule that summarizes the estimated cash receipts, estimated
distributed, and available cash balances for some defined period in the future
cash flow
A construction company's financial position as to assets, liabilities, and owners equity
would be calculated from information gathered from the_____.
balance sheet
, Concerning contractor payments on a lump-sum contract, line-item descriptions of the
major activities or items of work to be completed in the performance of contract
requirements on the project are shown in the_____.
schedule of values
The definition of a(an)_____ _asset is an asset that is expected to be sold, consumed or
realized in cash during the normal operating cycle of the construction business which, if
not otherwise defined, is constructed to be a 12-month cycle.
current assets
For a construction firm, the acid-test ratio is calculated from the ratio of______.
quick assets/current liabilities
Architect-engineers in order to minimize their liability regarding the shop, drawings,
many A-E's no longer use the word_______ when indicating that the shop drawings
have been reviewed and satisfactory.
approved
With worker's compensation insurance, the base rate says the same regardless of craft
(carpenter, ironworker, labor, equipment operator) but then the base rate per $100 of
payroll is then modified upwards or downwards based on the contractor's EMR.
Assume that the base worker's compensation rate for contractors (manual rate
premium) is $30.00 per $100 of wages. If the contractor's EMR is 1.5, the contractor
will pay_____per $100 of payroll for that craft.
Answers
The method for calculating depreciation method is
straightline depreciation
Concerning "back-end loading" practices by owners, examples of "back-end loading"
would include all of the following except
billings in excess of actual costs
Concerning financial analysis, an example of a liquidity ratio would be
current ratio
A_____ is a right created by law to secure payment for work performed and materials
furnished in the improvement of real property, that is, land and improvement on
mechanics lien
In calculating the acid-test for a firm, the calculation would subtract
out_______determining the ratio.
cash
A____is defined as a schedule that summarizes the estimated cash receipts, estimated
distributed, and available cash balances for some defined period in the future
cash flow
A construction company's financial position as to assets, liabilities, and owners equity
would be calculated from information gathered from the_____.
balance sheet
, Concerning contractor payments on a lump-sum contract, line-item descriptions of the
major activities or items of work to be completed in the performance of contract
requirements on the project are shown in the_____.
schedule of values
The definition of a(an)_____ _asset is an asset that is expected to be sold, consumed or
realized in cash during the normal operating cycle of the construction business which, if
not otherwise defined, is constructed to be a 12-month cycle.
current assets
For a construction firm, the acid-test ratio is calculated from the ratio of______.
quick assets/current liabilities
Architect-engineers in order to minimize their liability regarding the shop, drawings,
many A-E's no longer use the word_______ when indicating that the shop drawings
have been reviewed and satisfactory.
approved
With worker's compensation insurance, the base rate says the same regardless of craft
(carpenter, ironworker, labor, equipment operator) but then the base rate per $100 of
payroll is then modified upwards or downwards based on the contractor's EMR.
Assume that the base worker's compensation rate for contractors (manual rate
premium) is $30.00 per $100 of wages. If the contractor's EMR is 1.5, the contractor
will pay_____per $100 of payroll for that craft.
