VA CONTRACTORS- VA ADVANCED
(CLASS A) EXAM QUESTIONS &
VERIFIED CORRECT ANSWERS 100%
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... - correct 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... - correct
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. - correct
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? - correct answer ✔✔Loss of $1,000
The owner requests for change which will cost the contractor $15,000 in labor and materials
and $2,250 in overhead costs. With the change, the contractor would be relieved of $18,000 in
labor and materials costs, and $2,400 in overhead costs from the original contract. The original
bid included profit of 20% of all costs. The contractor wants to make a profit of 20% of all costs
(CLASS A) EXAM QUESTIONS &
VERIFIED CORRECT ANSWERS 100%
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... - correct 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... - correct
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. - correct
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? - correct answer ✔✔Loss of $1,000
The owner requests for change which will cost the contractor $15,000 in labor and materials
and $2,250 in overhead costs. With the change, the contractor would be relieved of $18,000 in
labor and materials costs, and $2,400 in overhead costs from the original contract. The original
bid included profit of 20% of all costs. The contractor wants to make a profit of 20% of all costs
