COSC 477 - Final Exam questions with
complete solutions A+ rated
Underbilling - correct answer ✔✔may indicate a problem with unapproved change orders
Underbilling - correct answer ✔✔change order work progressing without the appropriate
documentation
Underbilling - correct answer ✔✔may be caused by slow billing practices
Underbilling - correct answer ✔✔may lead to serious cash flow problems (GC becomes the bank)
Return on Revenue - correct answer ✔✔Profit/Revenue
the cash needed for all projects, plus the cash used by the home and regional offices for on-going
operations. - correct answer ✔✔The overall cash requirement for the company is the total of what?
Generally Accepted Accounting Principles - correct answer ✔✔GAAP
True - correct answer ✔✔T/F: Most construction companies are not incorporated as public corporations.
FLUOR - correct answer ✔✔The exception to public construction corporations is some of the larger
publicly traded construction companies like ___________.
False, they must report their earning per share every quarter. - correct answer ✔✔T/F: Public
corporations must report their earning per share (EPS) every month.
Revenue Realization Principle - correct answer ✔✔Revenue can be recorded when the sale takes place
and there is a reasonable expectation of collection the money.
, True - correct answer ✔✔T/F: If the company is considering borrowing money, its ROA provides a useful
control value.
True - correct answer ✔✔T/F: If the money can be borrowed at an interest rate below the company's
ROA then the company can profit from taking the loan.
No, the company should not take the loan because the company will pay more in interest than the profit
it can realize. - correct answer ✔✔If the loan requires paying a greater interest rate than the company's
ROA, should the company take the loan?
Fundamental Accounting Equation - correct answer ✔✔Everything the company owns = Everything the
company owes
Income Statement - correct answer ✔✔This shows how much money the company earned and spent
over a period of time
Return on Equity (ROE) - correct answer ✔✔Profit/ Owner's Equity
1.0 and 2.0 - correct answer ✔✔What is the recommended range for Quick Ratio?
Planning
Organizing
Controlling - correct answer ✔✔What are the three factors or management?
Earning per Share - correct answer ✔✔Corporations keep track of this.
Cash Basis Accounting
Accrual Basis of Accounting - correct answer ✔✔What are the two Construction Accounting Methods?
Setting Direction
complete solutions A+ rated
Underbilling - correct answer ✔✔may indicate a problem with unapproved change orders
Underbilling - correct answer ✔✔change order work progressing without the appropriate
documentation
Underbilling - correct answer ✔✔may be caused by slow billing practices
Underbilling - correct answer ✔✔may lead to serious cash flow problems (GC becomes the bank)
Return on Revenue - correct answer ✔✔Profit/Revenue
the cash needed for all projects, plus the cash used by the home and regional offices for on-going
operations. - correct answer ✔✔The overall cash requirement for the company is the total of what?
Generally Accepted Accounting Principles - correct answer ✔✔GAAP
True - correct answer ✔✔T/F: Most construction companies are not incorporated as public corporations.
FLUOR - correct answer ✔✔The exception to public construction corporations is some of the larger
publicly traded construction companies like ___________.
False, they must report their earning per share every quarter. - correct answer ✔✔T/F: Public
corporations must report their earning per share (EPS) every month.
Revenue Realization Principle - correct answer ✔✔Revenue can be recorded when the sale takes place
and there is a reasonable expectation of collection the money.
, True - correct answer ✔✔T/F: If the company is considering borrowing money, its ROA provides a useful
control value.
True - correct answer ✔✔T/F: If the money can be borrowed at an interest rate below the company's
ROA then the company can profit from taking the loan.
No, the company should not take the loan because the company will pay more in interest than the profit
it can realize. - correct answer ✔✔If the loan requires paying a greater interest rate than the company's
ROA, should the company take the loan?
Fundamental Accounting Equation - correct answer ✔✔Everything the company owns = Everything the
company owes
Income Statement - correct answer ✔✔This shows how much money the company earned and spent
over a period of time
Return on Equity (ROE) - correct answer ✔✔Profit/ Owner's Equity
1.0 and 2.0 - correct answer ✔✔What is the recommended range for Quick Ratio?
Planning
Organizing
Controlling - correct answer ✔✔What are the three factors or management?
Earning per Share - correct answer ✔✔Corporations keep track of this.
Cash Basis Accounting
Accrual Basis of Accounting - correct answer ✔✔What are the two Construction Accounting Methods?
Setting Direction
