VA Contractors: VA Advanced (Class A) questions with
correct answers 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... - -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... - -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. - -
Less than $12,000
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... - -A decrease of $3,780
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? - -Loss of $1,000
Which of the following would typically be covered by a contractor's comprehensive general liability
insurance policy? - -Damage to adjoining property from a crane accident
What is the total gross compensation and employment status for a carpenter, given the following
information? A contractor hires a carpenter to do the finish work for a 10-home project. The
carpenter is to be paid $16 per hour. The contractor provides all materials and equipment, such as
a table saw. The carpenter provides all of his own hand tools. The contractor and the carpenter
agree that all of the homes are to be completed within 60 8-hour working days, without overtime.
The contractor provides the carpenter with a schedule of the order in which homes are to be worked
on. The contractor provides a helper to assist the carpenter. The contractor sets the work schedule
each day. The carpenter spends 600 hours to complete this project, including 120 hours of
overtime. - -The carpenter is an employee and is owed $10,560 for the project
What is the average collection period ratio for a firm that has $365,000 in annual revenues, $6,600
in current receivables, and net income of $32,000? - -6.6
What is the name of the process when a facilitator meets with the major participants in a project,
prior to the commencement of the project, to identify the shared goals of all participants? - -
Partnering
Who oversees compliance with Material Safety Data Sheets? - -OSHA
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
correct answers 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... - -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... - -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. - -
Less than $12,000
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... - -A decrease of $3,780
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? - -Loss of $1,000
Which of the following would typically be covered by a contractor's comprehensive general liability
insurance policy? - -Damage to adjoining property from a crane accident
What is the total gross compensation and employment status for a carpenter, given the following
information? A contractor hires a carpenter to do the finish work for a 10-home project. The
carpenter is to be paid $16 per hour. The contractor provides all materials and equipment, such as
a table saw. The carpenter provides all of his own hand tools. The contractor and the carpenter
agree that all of the homes are to be completed within 60 8-hour working days, without overtime.
The contractor provides the carpenter with a schedule of the order in which homes are to be worked
on. The contractor provides a helper to assist the carpenter. The contractor sets the work schedule
each day. The carpenter spends 600 hours to complete this project, including 120 hours of
overtime. - -The carpenter is an employee and is owed $10,560 for the project
What is the average collection period ratio for a firm that has $365,000 in annual revenues, $6,600
in current receivables, and net income of $32,000? - -6.6
What is the name of the process when a facilitator meets with the major participants in a project,
prior to the commencement of the project, to identify the shared goals of all participants? - -
Partnering
Who oversees compliance with Material Safety Data Sheets? - -OSHA
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
