Construction Accounting Exam Questions With Correct Answers

Construction Accounting Exam Questions
With Correct Answers

Construction /Accounting /- /correct /answer(s) /✔✔ /Effective /management /of /a /construction
/company /requires /proper /cost /accounting, /and /the /availability /of /current /and /accurate /cost


/information




Purpose /of /accounting /- /correct /answer(s) /✔✔ /Produces /a /picture /of /financial /health

Collect /and /classify /financial /data

Indicates /problem /areas, /trends, /and /inefficiencies /• /Helps /secure /financing /and /bonding

Used /for /earned /value

Required /by /the /IRS /(the /"books")

We're /using /the /GAAP /Accounting /method /- /Generally /Accepted /Accounting /Principals
/




Financial /Tools /- /correct /answer(s) /✔✔ /Income /statement

Balance /Sheet

Cash /Flow /Statement



An /income /statement /reports... /- /correct /answer(s) /✔✔ /if /a /business /is /profitable. /Income
/statements /report /profit /performance.




Income /statements /are /also /called /- /correct /answer(s) /✔✔ /an /earnings /or /profit /statement



Financial /Tools: /Income /statements /measures /- /correct /answer(s) /✔✔ /income /flows

, What's /the /income /flows /equation? /- /correct /answer(s) /✔✔ /Revenues /- /expenses /= /Income



Balance /Sheet /- /correct /answer(s) /✔✔ /Records /the /assets /and /liabilities /of /the /business.
/Assets /recorded /on /one /side, /liabilities /and /equities /on /the /other /side.




Liability /holders /have /the /_____ /claim /on /assets. /- /correct /answer(s) /✔✔ /First



A /"snap /shot" /in /time /is /a /- /correct /answer(s) /✔✔ /Balance /Sheet



Balance /Sheet /equation /for /Assets /is /- /correct /answer(s) /✔✔ /Liabilities /+ /Equity /= /Assets



Cash /Flow /records /the /- /correct /answer(s) /✔✔ /in /flows /and /outflows /of /cash. /Referred /to /as
/the /"heartbeat" /of /a /business. /Without /it, /business /will /fail.




Cash /flow /statements /or /Measures /of /cash /flows /identify /- /correct /answer(s) /✔✔ /sources /and
/uses /of /cash




Income /statement /- /correct /answer(s) /✔✔ /Shows /a /company's /source /of /income, /production
/costs, /and /other /expenses /for /a /given /time /period




Income /Statement /- /correct /answer(s) /✔✔ /Tells /whether /the /business /is /profitable /or /not



Income /Statement /- /correct /answer(s) /✔✔ /Records /Revenues /(+) /and /Expenses /(-)



In /an /Income /Statement, /Net /income /= /- /correct /answer(s) /✔✔ /the /"bottom /line"