Construction Accounting Exam 1 Questions
With Correct Answers
Lump /sum /contract /- /correct /answer(s) /✔✔ /non-reimbursable, /contractor /has /price /risk /(no
/contingencies /& /retains /buyout /savings), /profit /is /undefined /and /umlimited, /GCs /are
/included, /allowances /are /acceptable, /alternates /(if /applicable) /can /be /applied /as /a /change
/order, /amount /can /be /revised /by /change /order
Performance /bond /- /correct /answer(s) /✔✔ /Ensures /principle /performs /per /the /contract
/requirements
Supply /bond /- /correct /answer(s) /✔✔ /Ensures /principle /meets /contract /requirements /for
/material /provided
Warranty /bond /- /correct /answer(s) /✔✔ /Ensures /principle /meets /all /their /warranty /obligations
Payment /bond /- /correct /answer(s) /✔✔ /Ensures /principle /pays /all /their /project /related
/liabilities
What /are /the /4 /types /of /bonds? /- /correct /answer(s) /✔✔ /Payment, /performance, /supply,
/warranty
What /is /a /contingency? /- /correct /answer(s) /✔✔ /An /amount /included /for /general /purposes
/and /not /based /on /an /objective /quantity
What /is /an /allowance? /- /correct /answer(s) /✔✔ /An /amount /included /for /a /specific /purpose
/and /based /on /an /approximate /cost /estimate
With Correct Answers
Lump /sum /contract /- /correct /answer(s) /✔✔ /non-reimbursable, /contractor /has /price /risk /(no
/contingencies /& /retains /buyout /savings), /profit /is /undefined /and /umlimited, /GCs /are
/included, /allowances /are /acceptable, /alternates /(if /applicable) /can /be /applied /as /a /change
/order, /amount /can /be /revised /by /change /order
Performance /bond /- /correct /answer(s) /✔✔ /Ensures /principle /performs /per /the /contract
/requirements
Supply /bond /- /correct /answer(s) /✔✔ /Ensures /principle /meets /contract /requirements /for
/material /provided
Warranty /bond /- /correct /answer(s) /✔✔ /Ensures /principle /meets /all /their /warranty /obligations
Payment /bond /- /correct /answer(s) /✔✔ /Ensures /principle /pays /all /their /project /related
/liabilities
What /are /the /4 /types /of /bonds? /- /correct /answer(s) /✔✔ /Payment, /performance, /supply,
/warranty
What /is /a /contingency? /- /correct /answer(s) /✔✔ /An /amount /included /for /general /purposes
/and /not /based /on /an /objective /quantity
What /is /an /allowance? /- /correct /answer(s) /✔✔ /An /amount /included /for /a /specific /purpose
/and /based /on /an /approximate /cost /estimate