CCIFP ACTUAL EXAM BANK AND
PRACTICE QUESTIONS EXAM
COMPLETE 520 QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) /ALREADY
GRADED A+
What is IRC 460 definition of long term contract? - CORRECT ANSWER ✔✔-
Any construction of property not completed within the taxable year contract began
What does the AICPA recognize as the authoritative standards? When was it
formed? - CORRECT ANSWER ✔✔- FASB - financial Accounting Standards
Board
Formed 1973
What is suretyship? - CORRECT ANSWER ✔✔- Guarantee of one party (the
surety) for the performance of the principal (the contractor)
What are the 3 components and what are the differences on the statement of cash
flows? - CORRECT ANSWER ✔✔- 1) Investing activities - generally involve
anything considered in non-current assets
2) Financing activities - generally involves non-current liabilities and equity
3) Operating activities - current assets and liabilities
What is SWOT in strategic planning? - CORRECT ANSWER ✔✔- Strength
(internal)
1|Page
,Weakness (internal)
Opportunities (external i.e. regulatory issues)
Threats (external i.e. regulatory issues)
Why is strategic planning important? - CORRECT ANSWER ✔✔- Encourages:
1) Commitment to a set of goals
2) Momentum to carry out plan
What are acceptable measurement standards when using percentage of completion
method? Describe each measurement. - CORRECT ANSWER ✔✔- 1) Cost to cost
- costs incurred
2) Efforts method - labor hours incurred
3) Output method - completed miles of highway "as a example" used when
uniformity of output
When does the look back requirement not apply? - CORRECT ANSWER ✔✔- 1)
Contract completed within 2 years
2) Gross contract price lesser of 1 million or 1% of annual gross receipts for prior 3
years
What is the IRS definition of a "residential construction contract"? - CORRECT
ANSWER ✔✔- More than 4 dwellings, excluding row houses and townhouses as
they considered separate dwellings. Excluded from IRC 460
List 6 external users of finacials - CORRECT ANSWER ✔✔- 1) Owners
2) Sureties
3) Banks
2|Page
,4) Vendors
5) Customers
6) Licening
What is the deductibility of a per diet paid to an employee? - CORRECT
ANSWER ✔✔- Treasury takes the position that 40% of per diet is meal expense
and only 50% deductible to employer
Who bears the risk in unit price contracts - CORRECT ANSWER ✔✔- contractor
What is the legal definition of a contract? What is the IRS definition? - CORRECT
ANSWER ✔✔- An agreement between 2 parties that is legally binding &
enforceable under applicable law.
Strategic planning must consider external factors. These factors change rapidly and
are outside the contractor control. - CORRECT ANSWER ✔✔- 1. Political
2. Regulatory
3. Market Outlook
4. Social
5. Technology
6. Economic
Strategic planning must consider internal factors. These factors the contractor can
control. - CORRECT ANSWER ✔✔- 1. Culture, related to financial discipline,
risk tolerance, growth, and change
2. Life cycle stage
3. Comprehensive marketing strategy
3|Page
, 4. Core competencies
5. Talent acquisition and retention programs
6. Commitment to technology
Major cause of contractor failure is - CORRECT ANSWER ✔✔- The failure to
plan and set specific objectives
Strategic Planning - CORRECT ANSWER ✔✔- A logical and systematic process
by which a contractor determines the strategic direction for the contractor's future
Strategic Planning - CORRECT ANSWER ✔✔- Requires knowledge of the risks
inherent in the construction industry and of available new business opportunities
Strategic Planning Process encourages - CORRECT ANSWER ✔✔- 1.
Assessment of your company's current condition
2. Examination of current business model and the way you would like to do
business in future
3. Development of new future operating methods in estimating, preconstruction,
marketing and sales
4. Commitment to set strategic goals and plans to meet them
5. Creation of momentum necessary to start and carry out the implementation of
strategic plan
What are the 2 coverage triggers for CGL? - CORRECT ANSWER ✔✔- 1.
Occurrence Trigger - Whatever policy in place a the time of the claim happening is
policy used.
2. Claims Trigger - (Not used much) Made trigger policy in place, Policy extended
4|Page
PRACTICE QUESTIONS EXAM
COMPLETE 520 QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) /ALREADY
GRADED A+
What is IRC 460 definition of long term contract? - CORRECT ANSWER ✔✔-
Any construction of property not completed within the taxable year contract began
What does the AICPA recognize as the authoritative standards? When was it
formed? - CORRECT ANSWER ✔✔- FASB - financial Accounting Standards
Board
Formed 1973
What is suretyship? - CORRECT ANSWER ✔✔- Guarantee of one party (the
surety) for the performance of the principal (the contractor)
What are the 3 components and what are the differences on the statement of cash
flows? - CORRECT ANSWER ✔✔- 1) Investing activities - generally involve
anything considered in non-current assets
2) Financing activities - generally involves non-current liabilities and equity
3) Operating activities - current assets and liabilities
What is SWOT in strategic planning? - CORRECT ANSWER ✔✔- Strength
(internal)
1|Page
,Weakness (internal)
Opportunities (external i.e. regulatory issues)
Threats (external i.e. regulatory issues)
Why is strategic planning important? - CORRECT ANSWER ✔✔- Encourages:
1) Commitment to a set of goals
2) Momentum to carry out plan
What are acceptable measurement standards when using percentage of completion
method? Describe each measurement. - CORRECT ANSWER ✔✔- 1) Cost to cost
- costs incurred
2) Efforts method - labor hours incurred
3) Output method - completed miles of highway "as a example" used when
uniformity of output
When does the look back requirement not apply? - CORRECT ANSWER ✔✔- 1)
Contract completed within 2 years
2) Gross contract price lesser of 1 million or 1% of annual gross receipts for prior 3
years
What is the IRS definition of a "residential construction contract"? - CORRECT
ANSWER ✔✔- More than 4 dwellings, excluding row houses and townhouses as
they considered separate dwellings. Excluded from IRC 460
List 6 external users of finacials - CORRECT ANSWER ✔✔- 1) Owners
2) Sureties
3) Banks
2|Page
,4) Vendors
5) Customers
6) Licening
What is the deductibility of a per diet paid to an employee? - CORRECT
ANSWER ✔✔- Treasury takes the position that 40% of per diet is meal expense
and only 50% deductible to employer
Who bears the risk in unit price contracts - CORRECT ANSWER ✔✔- contractor
What is the legal definition of a contract? What is the IRS definition? - CORRECT
ANSWER ✔✔- An agreement between 2 parties that is legally binding &
enforceable under applicable law.
Strategic planning must consider external factors. These factors change rapidly and
are outside the contractor control. - CORRECT ANSWER ✔✔- 1. Political
2. Regulatory
3. Market Outlook
4. Social
5. Technology
6. Economic
Strategic planning must consider internal factors. These factors the contractor can
control. - CORRECT ANSWER ✔✔- 1. Culture, related to financial discipline,
risk tolerance, growth, and change
2. Life cycle stage
3. Comprehensive marketing strategy
3|Page
, 4. Core competencies
5. Talent acquisition and retention programs
6. Commitment to technology
Major cause of contractor failure is - CORRECT ANSWER ✔✔- The failure to
plan and set specific objectives
Strategic Planning - CORRECT ANSWER ✔✔- A logical and systematic process
by which a contractor determines the strategic direction for the contractor's future
Strategic Planning - CORRECT ANSWER ✔✔- Requires knowledge of the risks
inherent in the construction industry and of available new business opportunities
Strategic Planning Process encourages - CORRECT ANSWER ✔✔- 1.
Assessment of your company's current condition
2. Examination of current business model and the way you would like to do
business in future
3. Development of new future operating methods in estimating, preconstruction,
marketing and sales
4. Commitment to set strategic goals and plans to meet them
5. Creation of momentum necessary to start and carry out the implementation of
strategic plan
What are the 2 coverage triggers for CGL? - CORRECT ANSWER ✔✔- 1.
Occurrence Trigger - Whatever policy in place a the time of the claim happening is
policy used.
2. Claims Trigger - (Not used much) Made trigger policy in place, Policy extended
4|Page
