CCIFP Practice Test – Questions With Accurate
Solutions
On a typical construction project whereby the owner has requested
performance and payment bonds from the general contractor, the owner is
referred to as the...... Correct Answer - obligee
When computing the taxable income for a proposed capital project, the
financial manager should use which tax rate?? Correct Answer -
marginal
What coverage trigger is used with commercial general liability policy when
the insurance policy in effect at the time the property damage loss occurs
respond to that loss, regardless of when the contractor learns about the loss
or when a claim is filed against the contractor Correct Answer -
Occurrence Trigger
Pursuant to GAAP, which of the following methods of recognizing revenue is
most frequently used in construction accounting? Correct Answer -
Percentage of Completion Method
Contractors can maximize controls over cash disbursements by implementing
some of the following..... 15.06 [2] Correct Answer - 1) Knowing vendor
systems
2) Using Controlled Disbursement bank Accounts
3) Implementing an open purchase order/contract commitment system
4) Soliciting Cooperation from Project Management to minimize early
Payments to subcontractors and suppliers
What role do Domain Controllers Serve within an Active Directory? Correct
Answer - To manage trust among the domains by granting access to users
from one domain to the other via a proper security authentication process.
A construction company should record interest rate swaps purchased for
business purposes using which method of valuation? 3.12 [1] Correct
Answer - Fair Market Value
,Which of the Following contract provisions is exculpatory? Correct Answer
- No damages for delay clause
Section 460 of the Internal Revenue Code defines the following? 29.03 [b]
Correct Answer - 29.03 [b]
ABC company hires a subcontractor to work on a project that will span over 5
years. the subcontract amount is $500,000 and is to be billed monthly by ABC.
Retention of 10% is to be held until the subcontract reaches 75% complete
and the owner of the project has approved the release of retention. how
should ABC company record the subcontractor retention on its records in the
first year of the project? 3.09[pgs. 3-27] Correct Answer - current-
liability
Under the completed contract method of accounting, how are general and
administrative cost realized on the income statement? Correct Answer -
Expensed and recognized in the year incurred.
The length of a contractors operation cycle determines what is considered a
current asset or liability for their classified balance sheet. it has become
common practice in the construction industry to classify all contract-related
assets and liabilities as current based on what measurement? Correct
Answer - average length of their contract.
Five steps of strategic planning are: develop an internal understanding of
existing businesses, identify new business opportunities, ______________, develop
a strategic plan, implement the plan. Correct Answer - analyze
alternatives
A- loss or claim under a surety bond is generally triggered by.... Correct
Answer - a default of the contract
when is it appropriate to recognize income from change order? Correct
Answer - when it's probable that the contract price will increase by more
than the costs incurred, and the revenue is "assured beyond a reasonable
doubt"
, what is the purpose of an IP Address? Correct Answer - identifies a
device on a network and its location, and allows devices to communicate with
each other over the internet
a contractor who performs design-build services with the design element
performed by in-house engineering staff may want to consider what type of
insurance. 27.11 [5] Correct Answer - professional liability insurance
the CFM should recognize __________________ as the entity satisfies a
performance obligation by transferring a promised good or service to a
customer. Correct Answer - when or as
a federal contractor uses the E-Verify program to determine whether its
workers are eligible to work in the united stats. which of the following is
allowed under the E-Verify program? 26b.03 [2] [f][ii] Correct Answer -
reaching out to the potential employee with documentation they consent to
info by signing a "further Action Notice" this starts a process to allow the
employer access to personal documentation in a face to face interaction.
insurance deductibles are an example of what risk management technique?
Correct Answer - risk retention (assumption of risk of loss by a contractor
through the use of deductibles
What is risk avoidance? Correct Answer - involves avoiding risk
associated with a particular operation or situation by not engaging in that
operation or allowing the situation to occur
what is safety/loss control risk management? Correct Answer -
decreases the chance of a loss occurring or to minimize the effect of a loss that
does occur.
what is contractual risk transfer? Correct Answer - transfer of risk
through hold harmless (or idemnity) clauses and other stipulations in
contracts
the components of "SWOT" or situation analysis include? Correct Answer -
Strengths, Weaknesses, Opportunities, Techniques
Solutions
On a typical construction project whereby the owner has requested
performance and payment bonds from the general contractor, the owner is
referred to as the...... Correct Answer - obligee
When computing the taxable income for a proposed capital project, the
financial manager should use which tax rate?? Correct Answer -
marginal
What coverage trigger is used with commercial general liability policy when
the insurance policy in effect at the time the property damage loss occurs
respond to that loss, regardless of when the contractor learns about the loss
or when a claim is filed against the contractor Correct Answer -
Occurrence Trigger
Pursuant to GAAP, which of the following methods of recognizing revenue is
most frequently used in construction accounting? Correct Answer -
Percentage of Completion Method
Contractors can maximize controls over cash disbursements by implementing
some of the following..... 15.06 [2] Correct Answer - 1) Knowing vendor
systems
2) Using Controlled Disbursement bank Accounts
3) Implementing an open purchase order/contract commitment system
4) Soliciting Cooperation from Project Management to minimize early
Payments to subcontractors and suppliers
What role do Domain Controllers Serve within an Active Directory? Correct
Answer - To manage trust among the domains by granting access to users
from one domain to the other via a proper security authentication process.
A construction company should record interest rate swaps purchased for
business purposes using which method of valuation? 3.12 [1] Correct
Answer - Fair Market Value
,Which of the Following contract provisions is exculpatory? Correct Answer
- No damages for delay clause
Section 460 of the Internal Revenue Code defines the following? 29.03 [b]
Correct Answer - 29.03 [b]
ABC company hires a subcontractor to work on a project that will span over 5
years. the subcontract amount is $500,000 and is to be billed monthly by ABC.
Retention of 10% is to be held until the subcontract reaches 75% complete
and the owner of the project has approved the release of retention. how
should ABC company record the subcontractor retention on its records in the
first year of the project? 3.09[pgs. 3-27] Correct Answer - current-
liability
Under the completed contract method of accounting, how are general and
administrative cost realized on the income statement? Correct Answer -
Expensed and recognized in the year incurred.
The length of a contractors operation cycle determines what is considered a
current asset or liability for their classified balance sheet. it has become
common practice in the construction industry to classify all contract-related
assets and liabilities as current based on what measurement? Correct
Answer - average length of their contract.
Five steps of strategic planning are: develop an internal understanding of
existing businesses, identify new business opportunities, ______________, develop
a strategic plan, implement the plan. Correct Answer - analyze
alternatives
A- loss or claim under a surety bond is generally triggered by.... Correct
Answer - a default of the contract
when is it appropriate to recognize income from change order? Correct
Answer - when it's probable that the contract price will increase by more
than the costs incurred, and the revenue is "assured beyond a reasonable
doubt"
, what is the purpose of an IP Address? Correct Answer - identifies a
device on a network and its location, and allows devices to communicate with
each other over the internet
a contractor who performs design-build services with the design element
performed by in-house engineering staff may want to consider what type of
insurance. 27.11 [5] Correct Answer - professional liability insurance
the CFM should recognize __________________ as the entity satisfies a
performance obligation by transferring a promised good or service to a
customer. Correct Answer - when or as
a federal contractor uses the E-Verify program to determine whether its
workers are eligible to work in the united stats. which of the following is
allowed under the E-Verify program? 26b.03 [2] [f][ii] Correct Answer -
reaching out to the potential employee with documentation they consent to
info by signing a "further Action Notice" this starts a process to allow the
employer access to personal documentation in a face to face interaction.
insurance deductibles are an example of what risk management technique?
Correct Answer - risk retention (assumption of risk of loss by a contractor
through the use of deductibles
What is risk avoidance? Correct Answer - involves avoiding risk
associated with a particular operation or situation by not engaging in that
operation or allowing the situation to occur
what is safety/loss control risk management? Correct Answer -
decreases the chance of a loss occurring or to minimize the effect of a loss that
does occur.
what is contractual risk transfer? Correct Answer - transfer of risk
through hold harmless (or idemnity) clauses and other stipulations in
contracts
the components of "SWOT" or situation analysis include? Correct Answer -
Strengths, Weaknesses, Opportunities, Techniques
