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CCIFP Accounting and Reporting 2026
Questions and Correct Answers/ Latest
Update / Already Graded
Current Ratio
Ans: Current Assets/Current Liabilities
Return on Equity
Ans: Net Income/Total Net Worth (or Total Stockholders
Equity)
Return on Assets
Ans: Net Income/Total Assets
Debt to Equity Ratio
Ans: Total Liabilities/Stockholders Equity
Asset Turnover Ratio
Ans: Net Sales/Total Assets
Days in Accounts Receivable (AR)
All rights reserved © 2025/ 2026 |
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Ans: (Accounts Receivable/Total Credit Sales) x Number of
Days
Return on Sales
Ans: Operating Profit (EBIT)/Revenue
Months Revenue in Backlog
Ans: Backlog Gross Revenue/(Annual Revenue/12)
What are assets constructed and intended for sale or lease?
Ans: Qualifying assets that warrant capitalization of interest.
Statement of Position on Scope applies to _________?
Ans: 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 conformity with generally accepted accounting
principles.
Working Capital Turnover
All rights reserved © 2025/ 2026 |
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Ans: Gross Revenue/(Current Assets - Current Liabilities)
Fixed Asset Turnover Ratio
Ans: Net Sales/Average Net Fixed Assets
What are two (2) accepted methods of accounting - reporting for
construction?
Ans: 1) POC - Percentage of Completion Method 2) CCM -
Completed Contract Method
Cost Recovery
Ans: The recovery of specific costs (identified in the
construction contract) throughout the life of a project.
3 Risks Addressed with Internal Controls
Ans: Financial Reporting, Regulatory Compliance, Operations
What is the zero gross profit option for the completed contract
method?
Ans: Recognizes revenue and cost for the period, but zero
gross profit allows company to show costs for the period.
All rights reserved © 2025/ 2026 |
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Why do Accountants use GAAP?
Ans: Accountants adhere to GAAP for consistency, fairness,
honesty and accuracy in measuring and disclosing financial
information.
What is financial reporting 4 components?
Ans: Financial reporting includes the following: the external
financial statements (balance sheet, income statement,
statement of cash flows and statement of stockholders.
When accounting for losses, what is recommended method of
recording?
Ans: Should be as additional costs not reduction of revenue
Gross Profit
Ans: Gross Profit is net sales minus the cost of goods sold.
(Sometimes referred to as GP or (GM) Gross margin.
Three objectives of Financial Managers
Ans: 1) Profitability 2)Liquidity 3) Financial Reporting
All rights reserved © 2025/ 2026 |
CCIFP Accounting and Reporting 2026
Questions and Correct Answers/ Latest
Update / Already Graded
Current Ratio
Ans: Current Assets/Current Liabilities
Return on Equity
Ans: Net Income/Total Net Worth (or Total Stockholders
Equity)
Return on Assets
Ans: Net Income/Total Assets
Debt to Equity Ratio
Ans: Total Liabilities/Stockholders Equity
Asset Turnover Ratio
Ans: Net Sales/Total Assets
Days in Accounts Receivable (AR)
All rights reserved © 2025/ 2026 |
, Page |2
Ans: (Accounts Receivable/Total Credit Sales) x Number of
Days
Return on Sales
Ans: Operating Profit (EBIT)/Revenue
Months Revenue in Backlog
Ans: Backlog Gross Revenue/(Annual Revenue/12)
What are assets constructed and intended for sale or lease?
Ans: Qualifying assets that warrant capitalization of interest.
Statement of Position on Scope applies to _________?
Ans: 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 conformity with generally accepted accounting
principles.
Working Capital Turnover
All rights reserved © 2025/ 2026 |
, Page |3
Ans: Gross Revenue/(Current Assets - Current Liabilities)
Fixed Asset Turnover Ratio
Ans: Net Sales/Average Net Fixed Assets
What are two (2) accepted methods of accounting - reporting for
construction?
Ans: 1) POC - Percentage of Completion Method 2) CCM -
Completed Contract Method
Cost Recovery
Ans: The recovery of specific costs (identified in the
construction contract) throughout the life of a project.
3 Risks Addressed with Internal Controls
Ans: Financial Reporting, Regulatory Compliance, Operations
What is the zero gross profit option for the completed contract
method?
Ans: Recognizes revenue and cost for the period, but zero
gross profit allows company to show costs for the period.
All rights reserved © 2025/ 2026 |
, Page |4
Why do Accountants use GAAP?
Ans: Accountants adhere to GAAP for consistency, fairness,
honesty and accuracy in measuring and disclosing financial
information.
What is financial reporting 4 components?
Ans: Financial reporting includes the following: the external
financial statements (balance sheet, income statement,
statement of cash flows and statement of stockholders.
When accounting for losses, what is recommended method of
recording?
Ans: Should be as additional costs not reduction of revenue
Gross Profit
Ans: Gross Profit is net sales minus the cost of goods sold.
(Sometimes referred to as GP or (GM) Gross margin.
Three objectives of Financial Managers
Ans: 1) Profitability 2)Liquidity 3) Financial Reporting
All rights reserved © 2025/ 2026 |
