CCIFP Exam Tested Questions With
Revised Correct Detailed Answers
>Latest Update>>
1. Internal rate of return is - ANSWER the discount rate that makes the NPV
of an investment zero
2. Tools CFM uses to analyze capital expenditures - ANSWER net investment
cash flow, operating cash flow of investments, and determining payback period
3. Types of guarantees - ANSWER unlimited, joint and several, limited or
proportionate, time
4. Methods to determine payback - ANSWER payback period, IRR, NPV, and
Profitability index
5. Aspects of cash management unique to construction - ANSWER retainage,
project-oriented, multiple levels of contractor and subcontractor relationships
6. Most important index for construction industry - ANSWER backlog in
current year compared to backlog last year
7. Common guarantees encountered by contractors - ANSWER debt and
performance
, 8. Working capital turnover - ANSWER gross revenue / (current assets -
current liabilities)
9. Loss on sale of asset is considered to be - ANSWER tax deductible
10. months revenue in backlog formula - ANSWER backlog gross revenue /
(annual revenue /12)
11. 2 conditions required to defer indirect costs - ANSWER costs are related
to a specific contract in progress and costs are related to contracting activities
12. Debt to equity ratio formula - ANSWER total liabilities/stockholders
equity
13. Costs in excess of billing are indication of what problems - ANSWER job
borrow, billing issues, error in estimated costs, unexpected costs
14. AR and Retention disclosure components - ANSWER retention, unbilled,
billed and due
15. Qualifying assets that warrant capitalization of interest are - ANSWER
assets constructed and intended for sale or lease
16. Return on assets formula - ANSWER net income/total assets
,17. Return on sales formula - ANSWER operating profit (EBIT) / revenue
18. Retention on subcontractor payables is required to be - ANSWER
disclosed because it may not be paid out soon
19. Asset turnover formula - ANSWER net sales/total assets
20. Return on equity formula - ANSWER net income/total net worth (total
stockholders' equity)
fixed asset turnover ratio - ANSWER net sales/average net fixed assets
cost method is used for what percentage of ownership - ANSWER 20% and
lower
components of monitoring profitability - ANSWER job profitability, unapplied
costs, G&A expenses, financing expenses and investment income
days in AR formula - ANSWER (AR/Total Sales) x number of days
what is excluded in cost to cost calculation - ANSWER stored and uninstalled
materials
5 C's of surety - ANSWER cash, capital, character, credit, capacity
, professional liablity is for what type of projects - ANSWER design-build
types of construction insurance - ANSWER umbrella, professional liability,
workers' compensation, builders' risk, auto, equipment, general liability
surety cash flow projection formula - ANSWER beginning cash + sources of
revenue by job - direct job payroll - subcontractor payments = net cash
sureties like to see what in cash flow projections - ANSWER net cash, G&A
expenses direct and indirect PR, net borrowings, debt service
characteristics of general liability coverage - ANSWER occurence trigger,
claims made trigger, limits of liability, and aggregate amount
ISO stands for - ANSWER Insurance Services Office
labor and material payment bond - ANSWER guarantee that those who
perform services and provide material will be paid
payment bond - ANSWER guarantee that subcontractor will pay its bills
exclusions on commercial general liability - ANSWER any liability assumed,
pollution, property damage, professional liability
what are guaranteed cost rating plans - ANSWER premium is computed at
the beginning of the policy
Revised Correct Detailed Answers
>Latest Update>>
1. Internal rate of return is - ANSWER the discount rate that makes the NPV
of an investment zero
2. Tools CFM uses to analyze capital expenditures - ANSWER net investment
cash flow, operating cash flow of investments, and determining payback period
3. Types of guarantees - ANSWER unlimited, joint and several, limited or
proportionate, time
4. Methods to determine payback - ANSWER payback period, IRR, NPV, and
Profitability index
5. Aspects of cash management unique to construction - ANSWER retainage,
project-oriented, multiple levels of contractor and subcontractor relationships
6. Most important index for construction industry - ANSWER backlog in
current year compared to backlog last year
7. Common guarantees encountered by contractors - ANSWER debt and
performance
, 8. Working capital turnover - ANSWER gross revenue / (current assets -
current liabilities)
9. Loss on sale of asset is considered to be - ANSWER tax deductible
10. months revenue in backlog formula - ANSWER backlog gross revenue /
(annual revenue /12)
11. 2 conditions required to defer indirect costs - ANSWER costs are related
to a specific contract in progress and costs are related to contracting activities
12. Debt to equity ratio formula - ANSWER total liabilities/stockholders
equity
13. Costs in excess of billing are indication of what problems - ANSWER job
borrow, billing issues, error in estimated costs, unexpected costs
14. AR and Retention disclosure components - ANSWER retention, unbilled,
billed and due
15. Qualifying assets that warrant capitalization of interest are - ANSWER
assets constructed and intended for sale or lease
16. Return on assets formula - ANSWER net income/total assets
,17. Return on sales formula - ANSWER operating profit (EBIT) / revenue
18. Retention on subcontractor payables is required to be - ANSWER
disclosed because it may not be paid out soon
19. Asset turnover formula - ANSWER net sales/total assets
20. Return on equity formula - ANSWER net income/total net worth (total
stockholders' equity)
fixed asset turnover ratio - ANSWER net sales/average net fixed assets
cost method is used for what percentage of ownership - ANSWER 20% and
lower
components of monitoring profitability - ANSWER job profitability, unapplied
costs, G&A expenses, financing expenses and investment income
days in AR formula - ANSWER (AR/Total Sales) x number of days
what is excluded in cost to cost calculation - ANSWER stored and uninstalled
materials
5 C's of surety - ANSWER cash, capital, character, credit, capacity
, professional liablity is for what type of projects - ANSWER design-build
types of construction insurance - ANSWER umbrella, professional liability,
workers' compensation, builders' risk, auto, equipment, general liability
surety cash flow projection formula - ANSWER beginning cash + sources of
revenue by job - direct job payroll - subcontractor payments = net cash
sureties like to see what in cash flow projections - ANSWER net cash, G&A
expenses direct and indirect PR, net borrowings, debt service
characteristics of general liability coverage - ANSWER occurence trigger,
claims made trigger, limits of liability, and aggregate amount
ISO stands for - ANSWER Insurance Services Office
labor and material payment bond - ANSWER guarantee that those who
perform services and provide material will be paid
payment bond - ANSWER guarantee that subcontractor will pay its bills
exclusions on commercial general liability - ANSWER any liability assumed,
pollution, property damage, professional liability
what are guaranteed cost rating plans - ANSWER premium is computed at
the beginning of the policy
