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VA CONTRACTORS: VA ADVANCED
(CLASS A) QUESTIONS WITH
COMPLETE SOLUTIONS
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... -
correct answer-More 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... - correct answer-Between $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
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salary is $36,000; office rent is $800 per month; and office utilities
are $375 per month. - correct 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? - correct
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... - correct answer-A decrease of $3,780
Which of the following would typically be covered by a
contractor's comprehensive general liability insurance policy? -
correct answer-Damage to adjoining property from a crane
accident
VA CONTRACTORS: VA ADVANCED
(CLASS A) QUESTIONS WITH
COMPLETE SOLUTIONS
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... -
correct answer-More 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... - correct answer-Between $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
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salary is $36,000; office rent is $800 per month; and office utilities
are $375 per month. - correct 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? - correct
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... - correct answer-A decrease of $3,780
Which of the following would typically be covered by a
contractor's comprehensive general liability insurance policy? -
correct answer-Damage to adjoining property from a crane
accident
