VA Contractor (Advance) Exam 2025
Questions and Answers
A contractor has completed and been paid for three miles out of ten on a
$7,500,000 highway repaving contract. The company is invoicing upon completion
of each mile under the percentage of completion method, with 10 percent
retainage. What is the net billing for the fourth mile?
2925000
2700000
675000
525000 - --CORRECT ANSWER--675000
The function of the balance sheet is to ___.
Provide an annual analysis of profit and loss
Summarize the business' investing, operating, and financing activities for a specific
accounting period
Show the financial condition of the business on a specific point in time
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,Compare general and administrative expenses to direct and indirect costs - --
CORRECT ANSWER--Show the financial condition of the business on a specific
point in time
Which of the following is considered an indirect cost on the income statement?
Equipment rental
Payroll taxes
Company vehicles and their operation
Employee benefits - --CORRECT ANSWER--Company vehicles and their
operation
Under Virginia ____ no employer shall require an employee to abstain or refrain
from membership or participation in any labor union or labor organization.
Labor Union Act
Right-to-Work Law
Labor Law
Employee Rights Act - --CORRECT ANSWER--Right-to-Work Law
Which ratio is used to indicate how well the company's assets are being used?
Total asset utilization
Return on Total Assets
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, Debt to equity ratio
Average collection period (ACP) - --CORRECT ANSWER--Return on Total
Assets
Refer to Pages 14-4 and 14-6 of the NASCLA Contractor's Guide: If the company
has an inventory of $7,750, What is the acid-test ratio based on the financial
statements? Round to the nearest tenth.
4.1
1.7
1.1
2.3 - --CORRECT ANSWER--2.3
Analysis of a project contracted for $23,400 shows the following costs. What is the
contractor's gross profit?
Insurance - $820 Materials - $3,850Advertising - $ 2,800 Office supplies -
$3,550Labor - $11,600 Subcontractors - $3,750
$2,970 loss
650
7550
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
Questions and Answers
A contractor has completed and been paid for three miles out of ten on a
$7,500,000 highway repaving contract. The company is invoicing upon completion
of each mile under the percentage of completion method, with 10 percent
retainage. What is the net billing for the fourth mile?
2925000
2700000
675000
525000 - --CORRECT ANSWER--675000
The function of the balance sheet is to ___.
Provide an annual analysis of profit and loss
Summarize the business' investing, operating, and financing activities for a specific
accounting period
Show the financial condition of the business on a specific point in time
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Compare general and administrative expenses to direct and indirect costs - --
CORRECT ANSWER--Show the financial condition of the business on a specific
point in time
Which of the following is considered an indirect cost on the income statement?
Equipment rental
Payroll taxes
Company vehicles and their operation
Employee benefits - --CORRECT ANSWER--Company vehicles and their
operation
Under Virginia ____ no employer shall require an employee to abstain or refrain
from membership or participation in any labor union or labor organization.
Labor Union Act
Right-to-Work Law
Labor Law
Employee Rights Act - --CORRECT ANSWER--Right-to-Work Law
Which ratio is used to indicate how well the company's assets are being used?
Total asset utilization
Return on Total Assets
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Debt to equity ratio
Average collection period (ACP) - --CORRECT ANSWER--Return on Total
Assets
Refer to Pages 14-4 and 14-6 of the NASCLA Contractor's Guide: If the company
has an inventory of $7,750, What is the acid-test ratio based on the financial
statements? Round to the nearest tenth.
4.1
1.7
1.1
2.3 - --CORRECT ANSWER--2.3
Analysis of a project contracted for $23,400 shows the following costs. What is the
contractor's gross profit?
Insurance - $820 Materials - $3,850Advertising - $ 2,800 Office supplies -
$3,550Labor - $11,600 Subcontractors - $3,750
$2,970 loss
650
7550
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
