CCIFP Study UPDATED ACTUAL Questions and CORRECT Answers
Percentage of Completion method: recognizes income as work on a contract progresses
Completed Contract method: Recognizes income only when the contract is completed
Units of delivery method: Recognizes as revenue the contract price of units of a basic production product
delivered during a period and as the cost of earned revenue the costs allocable
to the delivered units.
The units of delivery is a modification of the: percentage-of-completion method of accounting for contracts
The use of either of the two generally accepted methods The extent of progress towards completion, contract revenues and contract costs
of accounting involves, to a greater or lesser extent, three
key areas of estimates and uncertainties
Percentage of method is considered preferable when: Estimates of costs to complete and extent of progress toward completion of long
term contracts are reasonably dependable
Percentage of Completion and The completed contracts Both of the two generally accepted methods of accounting for contracts
method
Assets constructed and intended for sale or lease Qualifying assets that warrant capitalization of interest
Statement of Position, Scope of: applies to accounting for performance contracts for which specifications are
provided by the customer for the construction of facilities or the production of
goods or the provisions of related services that are reported in financial
statements prepared in comformity with generally accepted accounting
principles.
Performance Bond A guarantee that the contractor will perform the terms and conditions of the
contract and that the project will be built according to the plans and
specifications.
In which phase of the contract life cycle does a Contract Award
contractor have the opportunity to influence the contract
terms and conditions
The Primary goal of an incentive compensation plan is to Motivate group performance to achieve the company's identified goals
What is GAAP Generally Accepted Accounting Principles
Why Adhere to GAAP Accountants adhere to GAAP for consistency, fairness, honesty and accuracy in
measuring and disclosing financial information
Percentage of Completion method: recognizes income as work on a contract progresses
Completed Contract method: Recognizes income only when the contract is completed
Units of delivery method: Recognizes as revenue the contract price of units of a basic production product
delivered during a period and as the cost of earned revenue the costs allocable
to the delivered units.
The units of delivery is a modification of the: percentage-of-completion method of accounting for contracts
The use of either of the two generally accepted methods The extent of progress towards completion, contract revenues and contract costs
of accounting involves, to a greater or lesser extent, three
key areas of estimates and uncertainties
Percentage of method is considered preferable when: Estimates of costs to complete and extent of progress toward completion of long
term contracts are reasonably dependable
Percentage of Completion and The completed contracts Both of the two generally accepted methods of accounting for contracts
method
Assets constructed and intended for sale or lease Qualifying assets that warrant capitalization of interest
Statement of Position, Scope of: applies to accounting for performance contracts for which specifications are
provided by the customer for the construction of facilities or the production of
goods or the provisions of related services that are reported in financial
statements prepared in comformity with generally accepted accounting
principles.
Performance Bond A guarantee that the contractor will perform the terms and conditions of the
contract and that the project will be built according to the plans and
specifications.
In which phase of the contract life cycle does a Contract Award
contractor have the opportunity to influence the contract
terms and conditions
The Primary goal of an incentive compensation plan is to Motivate group performance to achieve the company's identified goals
What is GAAP Generally Accepted Accounting Principles
Why Adhere to GAAP Accountants adhere to GAAP for consistency, fairness, honesty and accuracy in
measuring and disclosing financial information
