CCIFP Accounting and Reporting 2026
Exam Questions With Correct Answers
Current Ratio - CORRECT ANSWER✔✔-Current Assets/Current Liabilities
| | | | | |
Return on Equity - CORRECT ANSWER✔✔-Net Income/Total Net Worth
| | | | | | | | |
(or Total Stockholders Equity)
| | |
Return on Assets - CORRECT ANSWER✔✔-Net Income/Total Assets
| | | | | | |
Debt to Equity Ratio - CORRECT ANSWER✔✔-Total
| | | | | |
Liabilities/Stockholders Equity
| |
Asset Turnover Ratio - CORRECT ANSWER✔✔-Net Sales/Total Assets
| | | | | | |
Days in Accounts Receivable (AR) - CORRECT ANSWER✔✔-(Accounts
| | | | | | | |
Receivable/Total Credit Sales) x Number of Days | | | | | |
Return on Sales - CORRECT ANSWER✔✔-Operating Profit
| | | | | |
(EBIT)/Revenue
|
,Months Revenue in Backlog - CORRECT ANSWER✔✔-Backlog Gross
| | | | | | | |
Revenue/(Annual Revenue/12) |
What are assets constructed and intended for sale or lease? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-Qualifying assets that warrant capitalization of interest. | | | | | |
Statement of Position on Scope applies to _________? - CORRECT
| | | | | | | | | |
ANSWER✔✔-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 - CORRECT ANSWER✔✔-Gross
| | | | |
Revenue/(Current Assets - Current Liabilities)
| | | | |
Fixed Asset Turnover Ratio - CORRECT ANSWER✔✔-Net Sales/Average
| | | | | | | |
Net Fixed Assets
| |
What are two (2) accepted methods of accounting - reporting for
| | | | | | | | | | |
construction? - CORRECT ANSWER✔✔-1) POC - Percentage of
| | | | | | | |
Completion Method 2) CCM - Completed Contract Method
| | | | | | |
,Cost Recovery - CORRECT ANSWER✔✔-The recovery of specific costs
| | | | | | | | |
(identified in the construction contract) throughout the life of a project.
| | | | | | | | | |
3 Risks Addressed with Internal Controls - CORRECT ANSWER✔✔-
| | | | | | | |
Financial Reporting, Regulatory Compliance, Operations
| | | |
What is the zero gross profit option for the completed contract method?
| | | | | | | | | | |
- CORRECT ANSWER✔✔-Recognizes revenue and cost for the period,
| | | | | | | | | |
but zero gross profit allows company to show costs for the period.
| | | | | | | | | | |
Why do Accountants use GAAP? - CORRECT ANSWER✔✔-Accountants
| | | | | | | |
adhere to GAAP for consistency, fairness, honesty and accuracy in
| | | | | | | | | |
measuring and disclosing financial information.
| | | |
What is financial reporting 4 components? - CORRECT ANSWER✔✔-
| | | | | | | |
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? - CORRECT ANSWER✔✔-Should be as additional costs not
| | | | | | | | |
reduction of revenue | |
, Gross Profit - CORRECT ANSWER✔✔-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 - CORRECT ANSWER✔✔-1)
| | | | | | | |
Profitability 2)Liquidity 3) Financial Reporting| | | |
Job Profitability - CORRECT ANSWER✔✔-The financial manager should
| | | | | | | |
ensure that margins on jobs are maximized through cost recovery.
| | | | | | | | |
Monetary Unit Assumption - CORRECT ANSWER✔✔-Part of the
| | | | | | |
"Monetary" unit assumption is that the U.S. dollar retains its purchasing
| | | | | | | | | | |
power over time
| | |
Matching Principle - CORRECT ANSWER✔✔-Adjusting entries help to
| | | | | | | |
achieve the "Matching" principle.
| | |
Original Cost Principle - CORRECT ANSWER✔✔-Under US GAAP, most
| | | | | | | | |
assets are held at their original costs (less depreciation or impairment)
| | | | | | | | | | |
as opposed to fair value.
| | | |
Industry Practice - CORRECT ANSWER✔✔-Allows the format of public
| | | | | | | | |
utility's balance sheet to be different from that of a manufacturer.
| | | | | | | | | |
Exam Questions With Correct Answers
Current Ratio - CORRECT ANSWER✔✔-Current Assets/Current Liabilities
| | | | | |
Return on Equity - CORRECT ANSWER✔✔-Net Income/Total Net Worth
| | | | | | | | |
(or Total Stockholders Equity)
| | |
Return on Assets - CORRECT ANSWER✔✔-Net Income/Total Assets
| | | | | | |
Debt to Equity Ratio - CORRECT ANSWER✔✔-Total
| | | | | |
Liabilities/Stockholders Equity
| |
Asset Turnover Ratio - CORRECT ANSWER✔✔-Net Sales/Total Assets
| | | | | | |
Days in Accounts Receivable (AR) - CORRECT ANSWER✔✔-(Accounts
| | | | | | | |
Receivable/Total Credit Sales) x Number of Days | | | | | |
Return on Sales - CORRECT ANSWER✔✔-Operating Profit
| | | | | |
(EBIT)/Revenue
|
,Months Revenue in Backlog - CORRECT ANSWER✔✔-Backlog Gross
| | | | | | | |
Revenue/(Annual Revenue/12) |
What are assets constructed and intended for sale or lease? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-Qualifying assets that warrant capitalization of interest. | | | | | |
Statement of Position on Scope applies to _________? - CORRECT
| | | | | | | | | |
ANSWER✔✔-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 - CORRECT ANSWER✔✔-Gross
| | | | |
Revenue/(Current Assets - Current Liabilities)
| | | | |
Fixed Asset Turnover Ratio - CORRECT ANSWER✔✔-Net Sales/Average
| | | | | | | |
Net Fixed Assets
| |
What are two (2) accepted methods of accounting - reporting for
| | | | | | | | | | |
construction? - CORRECT ANSWER✔✔-1) POC - Percentage of
| | | | | | | |
Completion Method 2) CCM - Completed Contract Method
| | | | | | |
,Cost Recovery - CORRECT ANSWER✔✔-The recovery of specific costs
| | | | | | | | |
(identified in the construction contract) throughout the life of a project.
| | | | | | | | | |
3 Risks Addressed with Internal Controls - CORRECT ANSWER✔✔-
| | | | | | | |
Financial Reporting, Regulatory Compliance, Operations
| | | |
What is the zero gross profit option for the completed contract method?
| | | | | | | | | | |
- CORRECT ANSWER✔✔-Recognizes revenue and cost for the period,
| | | | | | | | | |
but zero gross profit allows company to show costs for the period.
| | | | | | | | | | |
Why do Accountants use GAAP? - CORRECT ANSWER✔✔-Accountants
| | | | | | | |
adhere to GAAP for consistency, fairness, honesty and accuracy in
| | | | | | | | | |
measuring and disclosing financial information.
| | | |
What is financial reporting 4 components? - CORRECT ANSWER✔✔-
| | | | | | | |
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? - CORRECT ANSWER✔✔-Should be as additional costs not
| | | | | | | | |
reduction of revenue | |
, Gross Profit - CORRECT ANSWER✔✔-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 - CORRECT ANSWER✔✔-1)
| | | | | | | |
Profitability 2)Liquidity 3) Financial Reporting| | | |
Job Profitability - CORRECT ANSWER✔✔-The financial manager should
| | | | | | | |
ensure that margins on jobs are maximized through cost recovery.
| | | | | | | | |
Monetary Unit Assumption - CORRECT ANSWER✔✔-Part of the
| | | | | | |
"Monetary" unit assumption is that the U.S. dollar retains its purchasing
| | | | | | | | | | |
power over time
| | |
Matching Principle - CORRECT ANSWER✔✔-Adjusting entries help to
| | | | | | | |
achieve the "Matching" principle.
| | |
Original Cost Principle - CORRECT ANSWER✔✔-Under US GAAP, most
| | | | | | | | |
assets are held at their original costs (less depreciation or impairment)
| | | | | | | | | | |
as opposed to fair value.
| | | |
Industry Practice - CORRECT ANSWER✔✔-Allows the format of public
| | | | | | | | |
utility's balance sheet to be different from that of a manufacturer.
| | | | | | | | | |
