Va Contractors: Va Advanced
(Class A) / Va Contractors: Va
Advanced (Class A) Questions
With Correct Answers
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... - ✔✔✔ANSWER-
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... - ✔✔✔ANSWER-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. - ✔✔✔ANSWER-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? - ✔✔✔ANSWER-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... - ✔✔✔ANSWER-A decrease of
$3,780
Which of the following would typically be covered by a contractor's
comprehensive general liability insurance policy? - ✔✔✔ANSWER-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
(Class A) / Va Contractors: Va
Advanced (Class A) Questions
With Correct Answers
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... - ✔✔✔ANSWER-
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... - ✔✔✔ANSWER-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. - ✔✔✔ANSWER-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? - ✔✔✔ANSWER-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... - ✔✔✔ANSWER-A decrease of
$3,780
Which of the following would typically be covered by a contractor's
comprehensive general liability insurance policy? - ✔✔✔ANSWER-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
