VA CONTRACTORS: VA ADVANCED
(CLASS A) QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS 100%
CORRECT!!!!
Question 1: 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 newly completed project. The final payment amount
should be for...
Answer:
More than $50,000 ✔✔
Question 2: What is the total value of current assets for an accrual basis
company that has the following?
Checking account cash balance: $4,800
Materials inventory for work-in-progress: $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: $5,700
Suppliers' accounts payable: $6,300
Other accounts payable: $2,200
Quarterly income tax payment due: $1,180
Answer:
Between $12,000 and $16,000 ✔✔
Question 3: What is the total project overhead for a project that lasts 3
months and has the following costs?
Labor: $4,000
, Materials: $9,500
Equipment rentals: $1,200
Superintendent's annual salary: $36,000
Office rent: $800 per month
Office utilities: $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
(CLASS A) QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS 100%
CORRECT!!!!
Question 1: 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 newly completed project. The final payment amount
should be for...
Answer:
More than $50,000 ✔✔
Question 2: What is the total value of current assets for an accrual basis
company that has the following?
Checking account cash balance: $4,800
Materials inventory for work-in-progress: $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: $5,700
Suppliers' accounts payable: $6,300
Other accounts payable: $2,200
Quarterly income tax payment due: $1,180
Answer:
Between $12,000 and $16,000 ✔✔
Question 3: What is the total project overhead for a project that lasts 3
months and has the following costs?
Labor: $4,000
, Materials: $9,500
Equipment rentals: $1,200
Superintendent's annual salary: $36,000
Office rent: $800 per month
Office utilities: $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
