CCIFP Study Questions With Correct
Answers
Percentage of Completion method: - CORRECT ANSWER✔✔-recognizes
| | | | | | |
income as work on a contract progresses
| | | | | |
Completed Contract method: - CORRECT ANSWER✔✔-Recognizes
| | | | | |
income only when the contract is completed
| | | | | |
Units of delivery method: - CORRECT ANSWER✔✔-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: - CORRECT ANSWER✔✔-
| | | | | | | | | | |
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 - CORRECT ANSWER✔✔-The extent of progress towards
| | | | | | | |
completion, contract revenues and contract costs
| | | | |
, Percentage of method is considered preferable when: - CORRECT
| | | | | | | | |
ANSWER✔✔-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 -
| | | | | | | | |
CORRECT ANSWER✔✔-Both of the two generally accepted methods of
| | | | | | | | |
accounting for contracts | |
Assets constructed and intended for sale or lease - CORRECT
| | | | | | | | | |
ANSWER✔✔-Qualifying assets that warrant capitalization of interest | | | | | |
Statement of Position, Scope of: - CORRECT ANSWER✔✔-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 - CORRECT ANSWER✔✔-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 - CORRECT
| | | | | | | | | |
ANSWER✔✔-Contract Award |
Answers
Percentage of Completion method: - CORRECT ANSWER✔✔-recognizes
| | | | | | |
income as work on a contract progresses
| | | | | |
Completed Contract method: - CORRECT ANSWER✔✔-Recognizes
| | | | | |
income only when the contract is completed
| | | | | |
Units of delivery method: - CORRECT ANSWER✔✔-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: - CORRECT ANSWER✔✔-
| | | | | | | | | | |
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 - CORRECT ANSWER✔✔-The extent of progress towards
| | | | | | | |
completion, contract revenues and contract costs
| | | | |
, Percentage of method is considered preferable when: - CORRECT
| | | | | | | | |
ANSWER✔✔-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 -
| | | | | | | | |
CORRECT ANSWER✔✔-Both of the two generally accepted methods of
| | | | | | | | |
accounting for contracts | |
Assets constructed and intended for sale or lease - CORRECT
| | | | | | | | | |
ANSWER✔✔-Qualifying assets that warrant capitalization of interest | | | | | |
Statement of Position, Scope of: - CORRECT ANSWER✔✔-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 - CORRECT ANSWER✔✔-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 - CORRECT
| | | | | | | | | |
ANSWER✔✔-Contract Award |
