VA CONTRACTORS: VA ADVANCED
(CLASS A)
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...---ans-✔✔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...---ans-✔✔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.---ans-✔✔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?---ans-✔✔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-on-the-changes.-The-adjusted-contract-price-for-the-
change-order-should-be...---ans-✔✔A-decrease-of-$3,780
(CLASS A)
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...---ans-✔✔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...---ans-✔✔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.---ans-✔✔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?---ans-✔✔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-on-the-changes.-The-adjusted-contract-price-for-the-
change-order-should-be...---ans-✔✔A-decrease-of-$3,780
