VA Contractors Advanced Class A Exam 2026/2027 |
Verified Questions & Correct Answers With Rationales
– Graded A+ | Comprehensive Virginia Contractor
License Exam Prep
THIS EXAM CONTAINS:
• Verified Virginia Advanced Class A Contractor exam questions
• Correct answers with detailed explanations
• Licensing regulations and industry best practices
• Exam-style multiple-choice practice questions
• High-yield study notes and review materials
• Updated 2026/2027 content
• A+ graded exam preparation resource
,Construction Financial Management & Contracting
Question 1
A lump sum contract has a total price of $160,000. Retainage has been held
back at 10%. The contractor has received progress payments for 75% of the
project. Upon final completion, the final payment amount should be:
a) $40,000
b) $48,000
c) $56,000
d) $64,000
Correct Answer: c) $56,000
Rationale: Total contract price is $160,000. The contractor has been paid
for 75% of the work, meaning 25% remains billed ($160,000 * 0.25 =
$40,000). However, the 10% retainage on all progress payments has been
withheld. The total retainage is $160,000 * 0.10 = $16,000. Therefore, the
final payment is the remaining 25% ($40,000) plus the accumulated
retainage ($16,000) = $56,000. This is more than $50,000.
Question 2
What is the total value of current assets for an accrual-basis company with
the following? Checking: $4,800; Materials inventory (WIP): $4,200; Pick-up
truck (cost $12,460, paid $2,460 cash + $10,000 note): used 100% in
business; Accounts receivable: $5,700; Accounts payable (suppliers): $6,300;
Other payables: $2,200; Quarterly income tax due: $1,180.
a) Less than $10,000
b) Between $10,000 and $12,000
,c) Between $12,000 and $16,000
d) More than $16,000
Correct Answer: c) Between $12,000 and $16,000
Rationale: Current assets are assets expected to be converted to cash
within one year. From the list: Checking ($4,800) + Materials inventory
($4,200) + Accounts receivable ($5,700) = $14,700. The pick-up truck is a
fixed (long-term) asset, not a current asset. Accounts payable, other
payables, and tax due are liabilities, not assets. The calculated total of
$14,700 falls between $12,000 and $16,000.
Question 3
What is the total project overhead for a 3-month project with these costs?
Labor: $4,000; Materials: $9,500; Equipment rentals: $1,200;
Superintendent's annual salary: $36,000; Office rent: $800/month; Office
utilities: $375/month.
a) Less than $12,000
b) Between $12,000 and $15,000
c) Between $15,000 and $18,000
d) More than $18,000
Correct Answer: a) Less than $12,000
Rationale: Project overhead includes costs directly for the project that are
not direct labor/materials. This includes the superintendent (for 3 months:
$36,000/12 * 3 = $9,000) and office utilities for the project ($375 * 3 =
$1,125). Office rent ($800/month) is typically company overhead, not
project overhead, unless specifically allocated. Even if rent is included, total
would be $9,000 + $1,125 = $10,125 (or $12,525 including rent, but the
, question asks for "project overhead" which usually excludes general office
rent). Based on standard practice, the answer is less than $12,000.
Question 4
Using cash accounting, for one month a company bills out $38,000 in
completed work, receives $22,000 in payments plus $8,000 from previous
month's billings. They pay $26,000 to supply houses for this month's
purchases and another $5,000 for last month's purchases. What is the net
income for the month?
a) Loss of $1,000
b) Profit of $1,000
c) Profit of $5,000
d) Loss of $5,000
Correct Answer: a) Loss of $1,000
Rationale: Under cash accounting, revenue is recorded when cash is
received, and expenses when cash is paid. Revenue = $22,000 (current) +
$8,000 (prior) = $30,000. Expenses = $26,000 (current) + $5,000 (prior) =
$31,000. Net income = $30,000 - $31,000 = -$1,000 (a loss of $1,000).
Question 5
A change order will cost the contractor $15,000 in labor/materials and
$2,250 in overhead. The change relieves the contractor of $18,000 in
labor/materials and $2,400 in overhead from the original contract. Original
bid included 20% profit on costs. The contractor wants 20% profit on the
change order costs. The adjusted contract price for the change order
Verified Questions & Correct Answers With Rationales
– Graded A+ | Comprehensive Virginia Contractor
License Exam Prep
THIS EXAM CONTAINS:
• Verified Virginia Advanced Class A Contractor exam questions
• Correct answers with detailed explanations
• Licensing regulations and industry best practices
• Exam-style multiple-choice practice questions
• High-yield study notes and review materials
• Updated 2026/2027 content
• A+ graded exam preparation resource
,Construction Financial Management & Contracting
Question 1
A lump sum contract has a total price of $160,000. Retainage has been held
back at 10%. The contractor has received progress payments for 75% of the
project. Upon final completion, the final payment amount should be:
a) $40,000
b) $48,000
c) $56,000
d) $64,000
Correct Answer: c) $56,000
Rationale: Total contract price is $160,000. The contractor has been paid
for 75% of the work, meaning 25% remains billed ($160,000 * 0.25 =
$40,000). However, the 10% retainage on all progress payments has been
withheld. The total retainage is $160,000 * 0.10 = $16,000. Therefore, the
final payment is the remaining 25% ($40,000) plus the accumulated
retainage ($16,000) = $56,000. This is more than $50,000.
Question 2
What is the total value of current assets for an accrual-basis company with
the following? Checking: $4,800; Materials inventory (WIP): $4,200; Pick-up
truck (cost $12,460, paid $2,460 cash + $10,000 note): used 100% in
business; Accounts receivable: $5,700; Accounts payable (suppliers): $6,300;
Other payables: $2,200; Quarterly income tax due: $1,180.
a) Less than $10,000
b) Between $10,000 and $12,000
,c) Between $12,000 and $16,000
d) More than $16,000
Correct Answer: c) Between $12,000 and $16,000
Rationale: Current assets are assets expected to be converted to cash
within one year. From the list: Checking ($4,800) + Materials inventory
($4,200) + Accounts receivable ($5,700) = $14,700. The pick-up truck is a
fixed (long-term) asset, not a current asset. Accounts payable, other
payables, and tax due are liabilities, not assets. The calculated total of
$14,700 falls between $12,000 and $16,000.
Question 3
What is the total project overhead for a 3-month project with these costs?
Labor: $4,000; Materials: $9,500; Equipment rentals: $1,200;
Superintendent's annual salary: $36,000; Office rent: $800/month; Office
utilities: $375/month.
a) Less than $12,000
b) Between $12,000 and $15,000
c) Between $15,000 and $18,000
d) More than $18,000
Correct Answer: a) Less than $12,000
Rationale: Project overhead includes costs directly for the project that are
not direct labor/materials. This includes the superintendent (for 3 months:
$36,000/12 * 3 = $9,000) and office utilities for the project ($375 * 3 =
$1,125). Office rent ($800/month) is typically company overhead, not
project overhead, unless specifically allocated. Even if rent is included, total
would be $9,000 + $1,125 = $10,125 (or $12,525 including rent, but the
, question asks for "project overhead" which usually excludes general office
rent). Based on standard practice, the answer is less than $12,000.
Question 4
Using cash accounting, for one month a company bills out $38,000 in
completed work, receives $22,000 in payments plus $8,000 from previous
month's billings. They pay $26,000 to supply houses for this month's
purchases and another $5,000 for last month's purchases. What is the net
income for the month?
a) Loss of $1,000
b) Profit of $1,000
c) Profit of $5,000
d) Loss of $5,000
Correct Answer: a) Loss of $1,000
Rationale: Under cash accounting, revenue is recorded when cash is
received, and expenses when cash is paid. Revenue = $22,000 (current) +
$8,000 (prior) = $30,000. Expenses = $26,000 (current) + $5,000 (prior) =
$31,000. Net income = $30,000 - $31,000 = -$1,000 (a loss of $1,000).
Question 5
A change order will cost the contractor $15,000 in labor/materials and
$2,250 in overhead. The change relieves the contractor of $18,000 in
labor/materials and $2,400 in overhead from the original contract. Original
bid included 20% profit on costs. The contractor wants 20% profit on the
change order costs. The adjusted contract price for the change order
