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CCIFP - PRACTICE EXAM 140
QUESTIONS WITH DETAILED
VERIFIED ANSWERS
(100% CORRECT ANSWERS)
/ALREADY GRADED A+
Under ASC 606-10-32-21 through 32-24 the CFM should measure the
non-cash consideration ___________. - CORRECT ANSWER ✔✔- At
Fair Value
The CFM should recognize revenue ________________ the entity
satisfies a performance obligation by transferring a promised good or
service to a customer. - CORRECT ANSWER ✔✔- when or as
The two methods the CFM can use to implement ASC 606 in the
financial statements are __________ and ______________. -
CORRECT ANSWER ✔✔- the full retrospective transition method,
and
the modified retrospective transition method
The CFM may elect for the entity to apply ASC 606 and related GAAP
changes retrospectively either to all contracts at the date of initial
application or only to contracts not complete at the initial application
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date under the ____________________ method. - CORRECT
ANSWER ✔✔- Modified Retrospective
XYZ Company recently completed their monthly project reviews. The
Project Manager identified the following information about ABC
Project:
Contract amount: $560,000
Estimated total costs: $600,000
Costs incurred to date: $456,000
Previous month's revenue recognition: $352,000
Previous month's costs incurred: $258,000
What will this month's impact on net income for this particular project? -
CORRECT ANSWER ✔✔- -134,000
When is it appropriate to recognize income from change order? -
CORRECT ANSWER ✔✔- When the change order is initiated
Which protocol will allow auto configuration across the network of IP
addresses? - CORRECT ANSWER ✔✔- Dynamic Host Configuration
Protocol
DNS is an acronym for _____. - CORRECT ANSWER ✔✔- Domain
Name Server
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What role do Domain Controllers serve within an Active Directory? -
CORRECT ANSWER ✔✔- They store the database, maintain the
policies and provide authentication for domain logons, receive and relay
domain commands, and control granular settings in the domain
environment.
What is the purpose of an IP Address? - CORRECT ANSWER ✔✔- A
unique identifier for a device on the network
What are the warning signs of a spear phishing email? - CORRECT
ANSWER ✔✔- Spelling and grammatical errors, a specific target, and a
sense of urgency
Which are examples of a public cloud? - CORRECT ANSWER ✔✔-
Amazon Web Services, Microsoft Azure, Google Cloud Platform
What does the acronym CRM stand for? - CORRECT ANSWER ✔✔-
Customer Relationship Management
In addition to an accounting system, what are three other functional
areas that construction companies use software for? - CORRECT
ANSWER ✔✔- General Office Automation, Specialized Construction
Software, Construction Management
The Internal Revenue Service defines a long-term contract as: -
CORRECT ANSWER ✔✔- A contract for the manufacture, building,
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installation, or construction of property if such contract is not completed
within the taxable year in which such contract is entered into.
What is the IRS's preferred method of accounting for long-term
contracts? - CORRECT ANSWER ✔✔- Percentage of Completion
At what three year average gross receipts amount does a company have
to account for long term contracts on the percentage of completion
method? - CORRECT ANSWER ✔✔- $26 million
The IRS defines "entered into" as entered into a contract as
________________________. - CORRECT ANSWER ✔✔- The date
the contract binds both the taxpayer and customer under applicable law
Section 460 of the Internal Revenue Code defines the following terms
except: ____________________. - CORRECT ANSWER ✔✔- property
The common law definition of property includes: ______. - CORRECT
ANSWER ✔✔- the right to possess
A home construction contract is one that ___% or more of the contract is
for the construction of ___ or fewer dwelling units. - CORRECT
ANSWER ✔✔- 80, 4
The Project Management Team of ABC Company has informed the
CFO that a project is running into trouble with respects to the budgeted
CCIFP - PRACTICE EXAM 140
QUESTIONS WITH DETAILED
VERIFIED ANSWERS
(100% CORRECT ANSWERS)
/ALREADY GRADED A+
Under ASC 606-10-32-21 through 32-24 the CFM should measure the
non-cash consideration ___________. - CORRECT ANSWER ✔✔- At
Fair Value
The CFM should recognize revenue ________________ the entity
satisfies a performance obligation by transferring a promised good or
service to a customer. - CORRECT ANSWER ✔✔- when or as
The two methods the CFM can use to implement ASC 606 in the
financial statements are __________ and ______________. -
CORRECT ANSWER ✔✔- the full retrospective transition method,
and
the modified retrospective transition method
The CFM may elect for the entity to apply ASC 606 and related GAAP
changes retrospectively either to all contracts at the date of initial
application or only to contracts not complete at the initial application
,2|Page
date under the ____________________ method. - CORRECT
ANSWER ✔✔- Modified Retrospective
XYZ Company recently completed their monthly project reviews. The
Project Manager identified the following information about ABC
Project:
Contract amount: $560,000
Estimated total costs: $600,000
Costs incurred to date: $456,000
Previous month's revenue recognition: $352,000
Previous month's costs incurred: $258,000
What will this month's impact on net income for this particular project? -
CORRECT ANSWER ✔✔- -134,000
When is it appropriate to recognize income from change order? -
CORRECT ANSWER ✔✔- When the change order is initiated
Which protocol will allow auto configuration across the network of IP
addresses? - CORRECT ANSWER ✔✔- Dynamic Host Configuration
Protocol
DNS is an acronym for _____. - CORRECT ANSWER ✔✔- Domain
Name Server
,3|Page
What role do Domain Controllers serve within an Active Directory? -
CORRECT ANSWER ✔✔- They store the database, maintain the
policies and provide authentication for domain logons, receive and relay
domain commands, and control granular settings in the domain
environment.
What is the purpose of an IP Address? - CORRECT ANSWER ✔✔- A
unique identifier for a device on the network
What are the warning signs of a spear phishing email? - CORRECT
ANSWER ✔✔- Spelling and grammatical errors, a specific target, and a
sense of urgency
Which are examples of a public cloud? - CORRECT ANSWER ✔✔-
Amazon Web Services, Microsoft Azure, Google Cloud Platform
What does the acronym CRM stand for? - CORRECT ANSWER ✔✔-
Customer Relationship Management
In addition to an accounting system, what are three other functional
areas that construction companies use software for? - CORRECT
ANSWER ✔✔- General Office Automation, Specialized Construction
Software, Construction Management
The Internal Revenue Service defines a long-term contract as: -
CORRECT ANSWER ✔✔- A contract for the manufacture, building,
, 4|Page
installation, or construction of property if such contract is not completed
within the taxable year in which such contract is entered into.
What is the IRS's preferred method of accounting for long-term
contracts? - CORRECT ANSWER ✔✔- Percentage of Completion
At what three year average gross receipts amount does a company have
to account for long term contracts on the percentage of completion
method? - CORRECT ANSWER ✔✔- $26 million
The IRS defines "entered into" as entered into a contract as
________________________. - CORRECT ANSWER ✔✔- The date
the contract binds both the taxpayer and customer under applicable law
Section 460 of the Internal Revenue Code defines the following terms
except: ____________________. - CORRECT ANSWER ✔✔- property
The common law definition of property includes: ______. - CORRECT
ANSWER ✔✔- the right to possess
A home construction contract is one that ___% or more of the contract is
for the construction of ___ or fewer dwelling units. - CORRECT
ANSWER ✔✔- 80, 4
The Project Management Team of ABC Company has informed the
CFO that a project is running into trouble with respects to the budgeted
