CCIFP Study Flash Cards Questions with 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 of accounting involves, to a
greater or lesser extent, three key areas of estimates and uncertainties
The extent of progress towards completion, contract revenues and contract costs
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 method
Both of the two generally accepted methods of accounting for contracts
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 contractor have the opportunity to
influence the contract terms and conditions
Contract Award
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
What is financial reporting- 4 components
Financial reporting includes the following: the external financial statements (balance sheet,
income statement, statement of cash flows and statement of stockholders
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 of accounting involves, to a
greater or lesser extent, three key areas of estimates and uncertainties
The extent of progress towards completion, contract revenues and contract costs
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 method
Both of the two generally accepted methods of accounting for contracts
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 contractor have the opportunity to
influence the contract terms and conditions
Contract Award
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
What is financial reporting- 4 components
Financial reporting includes the following: the external financial statements (balance sheet,
income statement, statement of cash flows and statement of stockholders
