AFSB 152 Practice Exam Part A

AFSB 152 Practice Exam Part A The two main types of construction are heavy and highway construction and - The general building trades Dramatic increase in project size, taking work in new geographical areas, moving into new types of construction, and lack of management maturity are all factors that can result in - Contractor failure The Miller Act requires a contractor on a federal construction project to post two bonds, a performance bond and a - Labor and material payment bond Contractors would typically be granted relief from bidding mistakes from errors in - Mathematical calculation Profitable construction can be achieved by careful estimating, good construction practices, and - Efficient job supervision Most sureties use the 10 percent rule when underwriting bonds. An explanation from the contractor is required when - There is a 10 percent or greater difference between the first and second bids. A contractor might finance or refinance equipment or real estate. This financing, secured by real estate and payable in monthly installments over five to fifteen years, is called - A term loan Which one of the following types of financial statements do sureties prefer with a bond application? - Audit The primary consideration that influences most contractors in electing a tax reporting method is - The deferral of income tax payments to the greatest extent possible. The analyst's notes taken during the review of the contract status report might include all of the following, EXCEPT: - Gross profit (loss) recognition A financial analyst might check for a management change such as that associated with a stockholder's death, retirement, resignation, or termination when signaled by - A treasury stock transaction From the analyst's viewpoint, accumulated depreciation or amortization on fixed assets represents - A calculated reduction of value from the cost or capitalized basis of the assets. The income statement line-item that is widely recognized as the best measure of the contractor's success in the principal business activity is - Income from operations. One of the principal areas included in a forecast of financial conditions and financial results is - Expected financial performance of construction contracts and backlogs. An essential step for trend analysis and forecasting is - Formulate an overall judgment of financial trends. Supply contracts that surety underwriters do not consider hazardous involve products that are easily replicated, can be purchased from a variety of sources, and - Are short in duration A claim representative needs the principal's cooperation when gathering information to process a claim. One problem that could result from an uncooperative principal is - Payment of additional attorneys' fees and expenses to enforce the surety's rights. A surety claim representative has many sources of information available. However, the logical starting point for the claim representative is the - Surety's underwriters and their tiles. The two main sources of construction work in the United States are the federal, state, and local governme1lts and - Private business and industry. In starting the design process, the design professional interviews the client and measures current and future needs and reviews existing facilities for potential renovation and ability to handle future growth needs. What is the next step? - Professional engineers, architects, and attorneys obtain required zoning approvals and ensure that plans and specifications comply with all government