VA Contractors: VA Advanced (Class
A) Questions with Verified 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... - ANSWERSMore 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... - ANSWERSBetween $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. - ANSWERSLess 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? - ANSWERSLoss 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... - ANSWERSA decrease of $3,780
Which of the following would typically be covered by a contractor's comprehensive
general liability insurance policy? - ANSWERSDamage 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
A) Questions with Verified 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... - ANSWERSMore 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... - ANSWERSBetween $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. - ANSWERSLess 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? - ANSWERSLoss 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... - ANSWERSA decrease of $3,780
Which of the following would typically be covered by a contractor's comprehensive
general liability insurance policy? - ANSWERSDamage 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
