VA Contractors Advanced (Class A) Exam Graded A+
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
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
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
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
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
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
