VA CONTRACTORS ADVANCED QUESTIONS
AND CORRECT VERIFIED ANSWERS WITH
ALREADY RATED A+
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?
AND CORRECT VERIFIED ANSWERS WITH
ALREADY RATED A+
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?
