PRACTICE EXAM- CCIFP QUESTIONS
AND ANSWERS 2026 VERIFIED.
On a typical construction project whereby the owner has requested performance and payment
bonds from the general contractor, the owner is referred to as the...... - ANS obligee
when computing the taxable income for a proposed capital project, the financial manager
should use which tax rate?? - ANS marginal
what coverage trigger is used with commercial general liability policy when the insurance policy
in effect at the time the property damage loss occurs respond to that loss, regardless of when
the contractor learns about the loss or when a claim is filed against the contractor -
ANS Occurrence Trigger
Pursuant to GAAP, which of the following methods of recognizing revenue is most frequently
used in construction accounting? - ANS Percentage of Completion Method
Contractors can maximize controls over cash disbursements by implementing some of the
following..... 15.06 [2] - ANS 1) Knowing vendor systems
2) Using Controlled Disbursement bank Accounts
3) Implementing an open purchase order/contract commitment system
4) Soliciting Cooperation from Project Management to minimize early Payments to
subcontractors and suppliers
What role do Domain Controllers Serve within an Active Directory? - ANS To manage trust
among the domains by granting access to users from one domain to the other via a proper
security authentication process.
@2026/2027 ALLRIGHTS RESERVED.
,a construction company should record interest rate swaps purchased for business purposes
using which method of valuation? 3.12 [1] - ANS Fair Market Value
Which of the Following contract provisions is exculpatory? - ANS No damages for delay clause
Section 460 of the Internal Revenue Code defines the following? 29.03 [b] - ANS 29.03 [b]
ABC company hires a subcontractor to work on a project that will span over 5 years. the
subcontract amount is $500,000 and is to be billed monthly by ABC. Retention of 10% is to be
held until the subcontract reaches 75% complete and the owner of the project has approved
the release of retention. how should ABC company record the subcontractor retention on its
records in the first year of the project? 3.09[pgs. 3-27] - ANS current-liability
under the completed contract method of accounting, how are general and administrative cost
realized on the income statement? - ANS Expensed and recognized in the year incurred.
The length of a contractors operation cycle determines what is considered a current asset or
liability for their classified balance sheet. it has become common practice in the construction
industry to classify all contract-related assets and liabilities as current based on what
measurement? - ANS average length of their contract.
five steps of strategic planning are: develop an internal understanding of existing businesses,
identify new business opportunities, ______________, develop a strategic plan, implement the
plan. - ANS analyze alternatives
a loss or claim under a surety bond is generally triggered by.... - ANS a default of the contract
when is it appropriate to recognize income from change order? - ANS when it's probable that
the contract price will increase by more than the costs incurred, and the revenue is "assured
beyond a reasonable doubt"
@2026/2027 ALLRIGHTS RESERVED.
, what is the purpose of an IP Address? - ANS identifies a device on a network and its location,
and allows devices to communicate with each other over the internet
a contractor who performs design-build services with the design element performed by in-
house engineering staff may want to consider what type of insurance. 27.11 [5] -
ANS professional liability insurance
the CFM should recognize __________________ as the entity satisfies a performance obligation
by transferring a promised good or service to a customer. - ANS when or as
a federal contractor uses the E-Verify program to determine whether its workers are eligible to
work in the united stats. which of the following is allowed under the E-Verify program? 26b.03
[2] [f][ii] - ANS reaching out to the potential employee with documentation they consent to
info by signing a "further Action Notice" this starts a process to allow the employer access to
personal documentation in a face to face interaction.
insurance deductibles are an example of what risk management technique? - ANS risk
retention (assumption of risk of loss by a contractor through the use of deductibles
What is risk avoidance? - ANS involves avoiding risk associated with a particular operation or
situation by not engaging in that operation or allowing the situation to occur
what is safety/loss control risk management? - ANS decreases the chance of a loss occurring
or to minimize the effect of a loss that does occur.
what is contractual risk transfer? - ANS transfer of risk through hold harmless (or idemnity)
clauses and other stipulations in contracts
the components of "SWOT" or situation analysis include? - ANS Strengths, Weaknesses,
Opportunities, Techniques
@2026/2027 ALLRIGHTS RESERVED.
AND ANSWERS 2026 VERIFIED.
On a typical construction project whereby the owner has requested performance and payment
bonds from the general contractor, the owner is referred to as the...... - ANS obligee
when computing the taxable income for a proposed capital project, the financial manager
should use which tax rate?? - ANS marginal
what coverage trigger is used with commercial general liability policy when the insurance policy
in effect at the time the property damage loss occurs respond to that loss, regardless of when
the contractor learns about the loss or when a claim is filed against the contractor -
ANS Occurrence Trigger
Pursuant to GAAP, which of the following methods of recognizing revenue is most frequently
used in construction accounting? - ANS Percentage of Completion Method
Contractors can maximize controls over cash disbursements by implementing some of the
following..... 15.06 [2] - ANS 1) Knowing vendor systems
2) Using Controlled Disbursement bank Accounts
3) Implementing an open purchase order/contract commitment system
4) Soliciting Cooperation from Project Management to minimize early Payments to
subcontractors and suppliers
What role do Domain Controllers Serve within an Active Directory? - ANS To manage trust
among the domains by granting access to users from one domain to the other via a proper
security authentication process.
@2026/2027 ALLRIGHTS RESERVED.
,a construction company should record interest rate swaps purchased for business purposes
using which method of valuation? 3.12 [1] - ANS Fair Market Value
Which of the Following contract provisions is exculpatory? - ANS No damages for delay clause
Section 460 of the Internal Revenue Code defines the following? 29.03 [b] - ANS 29.03 [b]
ABC company hires a subcontractor to work on a project that will span over 5 years. the
subcontract amount is $500,000 and is to be billed monthly by ABC. Retention of 10% is to be
held until the subcontract reaches 75% complete and the owner of the project has approved
the release of retention. how should ABC company record the subcontractor retention on its
records in the first year of the project? 3.09[pgs. 3-27] - ANS current-liability
under the completed contract method of accounting, how are general and administrative cost
realized on the income statement? - ANS Expensed and recognized in the year incurred.
The length of a contractors operation cycle determines what is considered a current asset or
liability for their classified balance sheet. it has become common practice in the construction
industry to classify all contract-related assets and liabilities as current based on what
measurement? - ANS average length of their contract.
five steps of strategic planning are: develop an internal understanding of existing businesses,
identify new business opportunities, ______________, develop a strategic plan, implement the
plan. - ANS analyze alternatives
a loss or claim under a surety bond is generally triggered by.... - ANS a default of the contract
when is it appropriate to recognize income from change order? - ANS when it's probable that
the contract price will increase by more than the costs incurred, and the revenue is "assured
beyond a reasonable doubt"
@2026/2027 ALLRIGHTS RESERVED.
, what is the purpose of an IP Address? - ANS identifies a device on a network and its location,
and allows devices to communicate with each other over the internet
a contractor who performs design-build services with the design element performed by in-
house engineering staff may want to consider what type of insurance. 27.11 [5] -
ANS professional liability insurance
the CFM should recognize __________________ as the entity satisfies a performance obligation
by transferring a promised good or service to a customer. - ANS when or as
a federal contractor uses the E-Verify program to determine whether its workers are eligible to
work in the united stats. which of the following is allowed under the E-Verify program? 26b.03
[2] [f][ii] - ANS reaching out to the potential employee with documentation they consent to
info by signing a "further Action Notice" this starts a process to allow the employer access to
personal documentation in a face to face interaction.
insurance deductibles are an example of what risk management technique? - ANS risk
retention (assumption of risk of loss by a contractor through the use of deductibles
What is risk avoidance? - ANS involves avoiding risk associated with a particular operation or
situation by not engaging in that operation or allowing the situation to occur
what is safety/loss control risk management? - ANS decreases the chance of a loss occurring
or to minimize the effect of a loss that does occur.
what is contractual risk transfer? - ANS transfer of risk through hold harmless (or idemnity)
clauses and other stipulations in contracts
the components of "SWOT" or situation analysis include? - ANS Strengths, Weaknesses,
Opportunities, Techniques
@2026/2027 ALLRIGHTS RESERVED.
