VA CONTRACTORS: VA ADVANCED
(CLASS A) WITH COMPLETE
SOLUTIONS
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... - ANSWER-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... - ANSWER-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. - ANSWER-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? - ANSWER-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... - ANSWER-A decrease of $3,780
Which of the following would typically be covered by a contractor's comprehensive
general liability insurance policy? - ANSWER-Damage to adjoining property from a
crane accident
A non-exempt employee of a contractor covered by the Fair Labor Standards Act
works 60 hours during a workweek. The agreement is to pay the employee $400
each week regardless of the numbers of hours worked. What should be the
employee's gross pay for the worksheet? - ANSWER-$700.50
(CLASS A) WITH COMPLETE
SOLUTIONS
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... - ANSWER-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... - ANSWER-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. - ANSWER-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? - ANSWER-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... - ANSWER-A decrease of $3,780
Which of the following would typically be covered by a contractor's comprehensive
general liability insurance policy? - ANSWER-Damage to adjoining property from a
crane accident
A non-exempt employee of a contractor covered by the Fair Labor Standards Act
works 60 hours during a workweek. The agreement is to pay the employee $400
each week regardless of the numbers of hours worked. What should be the
employee's gross pay for the worksheet? - ANSWER-$700.50
