QUESTIONS AND ANSWERS GRADED A+
◉ A company has estimated income of $360,000 for the past year. To
achieve a gross profit ratio of 46%, what should be the cost of sales?
Answer: 194,400 is the cost of sales
◉ A HVAC company's Sales tax in 2017 were $300,000. In order to
show a profit of 45%, the cost of goods sold would be? Answer:
$135,000
◉ Using the percentage of completion method, what is the gross
profit to date of a construction project that has a contract amount of
$130,000, cost to date is $99,970, and cost to complete the project is
$11,760. Answer: $16,341
◉ Based on the following statement:
-Subcontractor $62,000
-Contract Income $87,560
-Misc. Income $26,344
-Construct. Materials $29,340
-Sale&Overhead $19,670
WHAT IS THE GROSS PROFIT? Answer: $22,164
,◉ The categories under assets, liabilities, equity, revenues, and
expenses are called? Answer: Accounts
Contractor's Manual 2017 Pg 3-18
◉ The total principal and interest that will be due at the end of a
term loan is the ______. Answer: Maturity Value
Contractor's Manual 2017 Pg 3-73
◉ In what way can a employee not pay overtime for a employee
working hourly and working over 40hrs in a week? Answer:
Overtime must be paid to any employee working hourly rates of at
least 1 and a 1/2 pay.
Contractor's Manual 2017 Pg 129
◉ Which insurance will cover materials while in transit or at
temporary storage? Answer: Builder's Risk coverage
Contractors Manual 2017 Pg 4-7
◉ The contractor as soon as practicable after award of the contract
shall notify The Owner and Architect of the name and qualifications
of a superintendent. Within ____ days the Architect or owner may
object to the proposed superintendent. Answer: 14 days
AIA-A201 Pg 15 Article 3.9.2
, ◉ What is the only way to enforce a lien for period longer than 1
year? Answer: Filing a suit
Contractors Manual 2017 Pg 9-30
◉ A ___ is a book that list by date all the transactions recorded in the
financial statement. Answer: Journal or General Journal
Contractor's Manual 2017 Pg 3-25
◉ When a lienor records a claim of lien, the lienor should serve a
copy of the lien to the Owner not later than ____ days from recording.
Answer: 15 days
Contractors Manual Pg 9-30
◉ What is OSHA maximum penalty amount? Answer: $124,471
Contractors Manual 2017 Pg 7-31
◉ What is the cash method system? Answer: Under the cash method
system you only record in the books and records when the money
change hands.
Builder's Accounting Pg 32