Quizlet 2 created by Queencarcar

Current Assets without inventories divided by Current Liabilities equals which of the following? a. Quick assets ratio b. Quick ratio c. Current r d. Assets to liabilities ratio

a (BGA Ch. 23, Pg. 269)

A depreciation reserve, listed as an asset on the balance sheet will appear as what? a. Debit b. Credit c. Charge off d. Disbursement

b (BGA Pg. 15)

A business organization which changes its address has how many days to report this change to the CILB? a. 30 b. 45 c. 60 d. 90

b (CM Pg. 2-22)

A vehicle with no salvage value was being depreciated over 10 years. If the first year's depreciation amount was $4,500, what is the total basis (value) of the vehicle? a. $45,000 b. $50,000 c. $40,000 d. $30,000

a (BGA ch. 13, Pg. 166)

Which of the following terms describes when you receive cash for a portion of the work and separate out the unearned portion? a. Percentage completion b. Completed contract c. Capitalized cost accrual method d. Accrual method

a (BGA Ch. 2, Pg. 23)

A construction crew had a standard to actual production rate of 1.14-to-1. If the actual time it took to complete a job was 137 hours, what would be the standard rate of time for the same job? a. 156 b. 120 c. 142 d. 161

a (BGA Ch. 15, Pg. 190)

According to the builder's guide to accounting, what is the best place to do a weekly labor cost analysis? a) payroll register b) general ledger c) balance sheet d) income statement

a (BGA Ch. 16, Pg. 198)

What is the best way to allocate overhead? a. Total labor hours b. Total payroll c. Total salaries d. Total subcontract expenses

a (BGA Ch. 16, Pg. 201)

A company reviewed its income statement for the prior year and discovered that it had a gross margin of profit of 18% above total costs. If the gross income for the year was $324,000, what was the cost of goods sold for the period? a. $265,680 b. $58,320 c. $55,320 d. $262,680

a (BGA Ch. 21, Pg. 249)

A construction company's past financial performance shows that gross profits have been decreasing in relation to sales. What factor would not cause this? a. Increase in mark-up over cost b. Lack of control of material costs c. Increase in idle time d. Inventory losses

a (BGA Ch. 21, Pg. 249)

Based on the following information, what is the Gross Profit? - Subcontractor "A"= $62,400 - Contract Income= $87,560 - Miscellaneous Income= $26,344 - Construction Materials= $29,340 - Sales and Overhead= $19,670 a. $22,164 b. $91,740 c. $113,904 d. $26,344

a (BGA Ch. 21, Pg. 249)

Which of the following items would NOT be a part of the break-even point formula? a. Net worth b. Sales c. Gross profit d. Fixed overhead

a (BGA Ch. 21, Pg. 249)

ABC Construction has current assets of $250,000, total assets of $300,000, total liabilities of $65,000, and short-term liabilities of $50,000. What is the value of its long term (other) assets? a. $50,000 b. $100,000 c. $150,000 d. $200,000

a (BGA Ch. 21, Pg. 252, 253)

If a company has current assets of $150,000 which includes inventories of $40,000 and total liabilities of $100,000 which includes $80,000 of current liabilities, what is its quick asset ratio? a. 1.375 to 1 b. 1 to 1.375 c. 1.36 to 1 d. 1.0 to 1.36

a (BGA Ch. 23, Pg. 269)

TCI was evaluating its bad debt losses for different periods during the year. In calculating the bad debt ratio, it found that the year to date bad debt ratio was 1 to 6. If its actual bad debt losses during the period were $2,000, what were its total credit sales for the same period? a. $12,000 b. $10,000 c. $8,000 d. $6,000

a (BGA Ch. 23, Pg. 269)

Based on the following information, what is TCI's net worth to assets ratio? - Net Income= $150,000 - Net Worth= $100,000 - Total Assets= $75,000 - Short Term Assets= $50,000 - Total Sales= $300,000 a. 1.33 to 1 Net Worth to Assets b. 1 to 1.33, Net Worth to Assets c. 2.3 to 1, Net Worth to Assets d. 2.3 to 1, Assets to Net Worth

a (BGA Ch. 23, Pg. 270)

Based on the following information, what is the gross profit margin percentage of the company? - Gross sales= $1,275,000 - Total assets= $875,000 - Contingent liabilities= $50,000 - Cost of goods sold= $1,000,000 - Selling expenses= $65,000 - Net income= $150,000 a. 21.6% b. 68.6% c. 27.5% d. 11.7%

a (BGA Ch. 23, Pg. 272)

If a company has total sales of $650,000 and direct costs of $350,000, what is its percentage gross profit? a. 46% b. 53% c. 21% d. 2.1%

a (BGA Ch. 23, Pg. 272)

According to the Builder's Guide to Accounting, a bank which lends money seeks a return on its investment. What is this called? a. Yield b. Interest c. Points d. Discount

a (BGA Ch. 28, Pg. 316)

Which of the following is the document used to track receivables and list the time of outstanding receivables? a. Aging list b. General ledger c. Bad debts study d. Chart of accounts

a (BGA Ch. 3, Pg. 46)

A reserve for bad debts can do which of the following? a) save you taxes b) save you expenses c) save you deferred expenses d) save you accrued expenses

a (BGA Ch. 5, Pg 64)

A bad debt ratio is figured by which of the following? a. Credit sales divided by bad debt losses b. Credit sales times estimated bad debts c. Both A and B d. None of the above

a (BGA Ch. 5, Pg. 65)

According to The Contractor's Manual, which of the following equals the estimated earnings in excess of billings? a. The difference between earned and billed income b. The difference between unearned and collected funds c. The difference between collected and billed funds d. The difference between contract value and estimated cost to date

a (CM Pg. 3-82)

Of the two types of bid bonds, which one states that if a contractor is the low bidder and he does not enter into a contract according to the bid documents, then he will forfeit the bid amount stated on the bid bond? a. Forfeiture obligation b. Difference in bid c. Bid bond #1 d. A payment bid bond

a (CM Pg. 4-13)

The contractor who specializes in plumbing, heating, air conditioning, or electrical equipment may find which of the following is more suited to his/her needs? a. Installation floater b. General liability policy c. Builders' Risk Insurance Form d. Workers' Compensation Policy

a (CM Pg. 4-7)

Business income insurance is available to cover losses to property which cause a decrease in expense. This is often referred to as which of the following? a. Business Interruption Insurance b. Liability Insurance c. Builder's Risk Insurance d. Crime Insurance

a (CM Pg. 4-8)

In Florida, where is a 17-year-old NOT allowed to perform work? a. On a scaffold b. In a construction office c. In a corporate office d. In a restaurant that serves beer

a (CM Pg. 5-31)

Under the Civil Rights Act of 1964, an employee who believes he has been discriminated against may file a complaint with his nearest EEOC office within how many days? a. 300 days b. 45 days c. 10 days d. 90 days

a (CM Pg. 5-34)

Which of the following is the only method of extending a lien beyond the one-year deadline? a. An action is filed in court to enforce the lien b. An extension of lien is requested c. The lien is re-recorded d. A notice of lien has been sent to the owner

a (CM Pg. 9-30)

According to the Contractor's Manual, which of the following elements of compensation are NOT reportable as income for Income tax purposes? a. Workers' Compensation Benefits paid to a worker b. Wages paid as tips, where a minimum wage is also paid to the employee c. Wages paid by a son to a father d. Wages paid by a father to son

a (CM circular e 3-188)

According to AIA 401. after entering into a contract, what should a subcontractor submit to the contractor? a. A CPM schedule b. A schedule of values c. A schedule of float time d. A schedule of builder's risk insurance

b (AIA 401)

A contractor purchased a new pickup truck on September 1, 2018, for $13,940. The useful life of the vehicle is estimated at 7 years and the annual depreciation, per the builder's guide to accounting, what would be the book value of the truck that would appear on the contractor's balance sheet as of August 31, 2024? a) $1,603 b) $4,321 c) $9,618 d) $2,718

b (BCG Ch, 13, Pg. 163)

Based on the following financial information available for TCI Construction for the past year, what is the company's gross profit? - Direct costs= 40% - Fixed overhead= $20,000 - Selling expenses= 10% - Sales= $100,000 a. $30,000 b. $60,000 c. $50,000 d. $40,000

b (BFA Ch. 21, Pg. 249)

ABC Construction was using its historical information to determine which type of activity would yield the greatest net profit for the company. In the past year the following information was available: - Remodeling sales= $300,000 - New Construction sales= $400,000 - Total sales (all activities)= $700,000 - Cost of sales for all activities= 12% - Fixed costs for all activities= $27,000 Assuming the total sales remained at $700,000 with all costs remaining the same, if ABC Construction dropped its remodeling activities and focused exclusively on its new construction activities, what would be its net profit? a. $29, ,000 b. $99,000 c. $82,000 d. $27,000

b (BGA 248)

In reviewing its debit and credit accounts for the reporting period, a company was evaluating its internal procedures. With respect to its checking account, what is the recommended frequency for reconciliation? a. Weekly b. Monthly c. Quarterly d. Semi-Monthly

b (BGA Ch. 1, Pg. 10)

According to the Builder's Guide to Accounting, what is the easiest way to maintain a perpetual inventory? a. FIFO b. LIFO c. Unit by Unit d. Average

b (BGA Ch. 10, Pg. 120)

According to the Builder's Guide to Accounting, which of the following is NOT regarded as a fixed expense? a. Advertising b. Hard Costs c. Office Utility Costs d. Office Phone Costs

b (BGA Ch. 12, Pg. 143)

Which of the following cannot be depreciated? a. Office Equipment b. Land for Lumber Yard c. Motor Vehicles d. Office Bldg.

b (BGA Ch. 13, Pg. 162)

According to the Builder's Guide to Accounting, which of the following would be strictly a General Journal Entry Category? a. Assets b. Depreciation c. Income d. Liabilities

b (BGA Ch. 13, Pg. 163)

TCI construction used the straight-line method of depreciation to calculate the book a truck. Based on the following information, what is the number of years the vehicle had been depreciated? - Acquisition Cost= $27,500 - Years of Useful Life= 10 - Salvage Value= $3,500 - Accumulated Depreciation= $14,400 a. 5 years b. 6 years c. 7 years d. 8 years

b (BGA Ch. 13, Pg. 163)

What is a financial ratio, such as the quick asset ratio, which can be used as an indicator for the ability of the company to raise cash? a. Profitability Ratio b. Liquidity Ratio c. Net Worth Ratio d. Margin of Profit Ratio

b (BGA Ch. 14, Pg. 174)

A construction company recognizes income only on the portion of money received or charges billed for work completed. What is this called? a. Cash basis for accounting b. Percentage of completion accounting c. Completed contracts method of accounting d. None of the above

b (BGA Ch. 2, Pg. 23)

In the completed contractor method of accounting, what are all monies received the period prior to the 65% of completion level? a. Total Earnings b. Unearned Income c. Advance Payments d. Deferred Payments

b (BGA Ch. 2, Pg. 24 & 25)

Using the percentage of completion method for recognizing income, what is the gross profit to date of a construction project that has: - a contract amount of $130,000 - cost to date of $99,970; and - cost to complete the project of $11,760? (Select the closest answer) a. $12,641 b. $16,380 c. $17,481 d. $17,971

b (BGA Ch. 2, Pg. 24)

A job which is 65% complete and for which 0 earnings have been credited is using which method of accrual? a. The % of completion b. Completed contracts c. Hybrid d. Cash

b (BGA Ch. 2, Pg. 25)

What method of accounting is normally used if you have only very small jobs? a. Percentage Completion b. Completed Contract c. Capitalized Cost d. Accrual Method

b (BGA Ch. 2, Pg. 25)

What ratio is favored by loan officers as a good indicator of financial health? a. Quick ratio b. Current ratio c. Quick assets ratio d. Net worth to assets ratio

b (BGa Ch. 23, Pg. 269)

Which type of contract is NOT recommended when using the square foot method of estimating? a. Cost plus b. Lump sum c. Unit price d. None of the above

b (CM 10-12)

Under the Completed Contract method, when is a project recognized as complete? a. When architect says, it is completed b. Contract in excess of 98% or 99% completed c. Contract in excess of 50% complete d. Contract in excess of 40%

b (CM Pg. 3-80)

Given current assets of $120,000 and current liabilities of $100,000, the current ratio is 1.2 to 1. This means which of the following? a. For every $1 of asset there is $1.2 of liabilities b. For every $1.2 of assets there is $1 of liabilities c. For every $1 of liabilities there is $0.70 of assets d. For every $1 of assets there is $0.70 of liabilities

b (CM Pg. 3-89 & BGA Ch. 23 268)

An unfair labor practice charge must be received by the regional office where the unfair practice is alleged to have occurred within how many months of the alleged violation? a. 3 months b. 6 months c. 9 months d. 12 months

b (CM Pg. 5-14)

According to the Fair Labor Standards Act, how long should purchase orders and sales records be kept? a. 2 years b. 3 years c. 4 years d. 5 years

b (CM Pg. 5-30)

How many years should the Form I-9, eligibility requirement, be retained by the employer? a) 1 year b) 3 years c) 5 years d) 7 years

b (CM Pg. 5058)

An employer not having a drug testing program shall ensure that at least how many days' elapse between a general one-time notice to all employees that a drug-testing program is being implemented and the beginning of actual drug testing? a. 30 days b. 60 days c. 40 days d. 45 days

b (CM Pg. 6-98)

For general rigging and hoisting of materials, a factor of 5 is acceptable; however, when the rope is to be used for hoisting or supporting personnel, which of the following safety factors must be used? a. 5 b. 10 c. 20 d. 50

b (CM Pg. 7-53)

When does common law, indemnity apply? a. When the benefit party is guilty b. When the benefit party is not guilty c. When the benefit party nolo contendere d. When the benefit party is absent

b (CM Pg. 8-16)

After signing an AIA 401 contract, a subcontractor who was not in privity began working on a project. The official start date of the subcontractor's work was February 20, 2006. The notice of commencement was filed on January 2, 2006. If the subcontractor is forced to file a lien in accordance with F.S. 713, how many days after filing the lien does he have to notify the owner of his action? a. 3 b. 15 c. 45 d. 9

b (CM Pg. 9-30)

What type of bond is not defined by any statutes? a. Performance Statutory bonds b. Common Law bonds c. Bonds d. Liability bonds

b (CM Pg. 9-47)

Which of the following is NOT true with respect to the Lien Law (F.S. 713)? a. A not in privity contractor must file a notice to owner within 45 days of furnishing materials to establish a lien right b. A notice of commencement must be filed if the work is valued at over $3,500 c. A lien is good for 1 year d. A contest of lien shrinks the lien time from 1 year to 60 days

b (CM Pg. 9-92)

According to Circular E, the W-2 form is to be furnished to each employee by no later than what date of each year? a. January 1st b. January 31s C. February 1st d. March 31st

b (CM circular e 3-155)

According to the circular-e, form W-2 is to be furnished to each employee each year no later than which date? a) January 1st b) January 31st c) February 1st d) March 31st

b (CM circular-e 3-155)

According to the Circular E, an employer takes NO credit against his Federal Unemployment Tax (FUTA). For each employee earning over $7,000 per year, what is the total amount of the tax? a.$42 b. $420 c. $217 d. Based on employee's earnings

b (circular e 3-182)

If a company has a margin of profit of 27%, what are its direct costs? a. 27% b. 73% c. 16% d. 22%

b( BGA Ch. 21, Pg. 249)

A contractor was evaluating his company's profitability ratio. Total sales for last year, for all operations combined, totaled $200,000. 60% of his sales consisted of punch out work and the remainder (40%) was kitchen remodeling. If his gross profit margin for the punch out work was 83% and his cost of goods sold for his kitchen remodeling was 42%, what was his total gross operating profit for all operations? a. $80,000 b. $99,600 c. $116,000 d. $146,000

d

Based on the following information, what is the correct balance for TCl's checkbook and bank statement as of December 31st? - Balance showing in checkbook= $10,000 - Bank statement monthly service fee= $25 - Incorrect deposit amount in check book= $2,000 (correct amount of $200) - Outstanding check amount= $5,0000 -Deposit made on December 29 was not shown in the bank statement a. $10,000 b. $4,175 c. $4,025 d. $8,175

d

Jones Construction is building a building that they will own. They currently have a certified general contractor's construction license. They must subcontract out all trades EXCEPT for which of the following? a. Air conditioning b. Electrical c. Roofing d. Plumbing

c (CM Pg. 2-7)

A business organization which loses its qualifying agent shall have how many days to secure another qualifying agent? a. 30 b. 45 c. 60 d. 90

c (CM Pg. 2-87)

The American with disabilities act applies to employers with ______ or more employees for each working day in each of 20 or more calendar weeks in the current or preceding calendar year. a) 10 b) 12 c) 15 d) 20

c (CM Pg. 5-41)

To comply with the Drug-Free Workplace Act of 1988, which one of these statements is true? a. Drug testing must be done to new employees before they start working b. Drug testing is randomly requested c. A drug test is never required d. A drug test is mandatory every sixty days

c (CM Pg. 5-49)

Unemployment compensation records must be maintained for a period of how many years? a. 3 years b. 4 years c. 5 years d. 6 years

c (CM Pg. 5-53)

A laborer begins employment with your company in September of 2017 and quits in July of 2018. To which of the following dates must your company retain the form I-9 for this employee? a) September 2019 b) September 2020 c) September 2021 d) September 2022

c (CM Pg. 5-58)

When an injury is caused by the refusal of an employee to use a safety device or to observe a safety rule or statute, which of the following happens? a. No compensation shall be paid b. Compensation may be reduced by 10% c. Compensation may be reduced by 25% d. Compensation may be reduced by 50%

c (CM Pg. 6-11)

Under F.S. 440, "casual" refers only to employment for work that is anticipated to be completed in which of the following? a. Five working days b. Seven working days c. Ten working days d. Fifteen working days

c (CM Pg. 6-70)

Which of the following is true with respect to the Lien Law (F.S.713)? a. A release of lien must be notarized to be valid b. A notice to owner must be notarized to be valid c. A notice of commencement must be recorded by the owner before the work is begun d. A lien, to be valid, must be filed with the local building department

c (CM Pg. 9-11)

A company has the following financial information available: (Method of revenue recognition is Percentage of Completion). Which of the following statements is true? - Contract Value= $1,250,000 - Cost to Date= $240,000 - Cost to Complete= $800,000 - Billings= $297,000 a. The total cost of the project is $1,250,000 b. The percentage of completion is 5.2% c. The project has uncollected earnings of $8,250 d. The project has unearned income of $8,250

d (CM Pg. 3-79)

ABC Construction determined that a work crew accomplished a 124% standard ratio. If the next iob they complete takes them 398 hours of production time, what is standard estimate for the same task? (The amount of time a task takes as estimated by an industry reference) a. 398 b. 493 c. 302 d. 321

d (BGA Ch. 15, Pg. 190)

A bond is a three-party agreement between the contractor, guarantor, and the owner. Which of the following is true? a) contractor is the principal b) guarantor is the surety c) owner is the obligee d) all of the above

d (CM Pg. 4-13)

Which of the following is not representative of insurance? a. Completed operations rider b. Comprehensive crime and dishonesty policy c. Named perils policy d. Surety bond

d (CM Pg. 4-13)

Which of the following is the type of insurance rider that is typically placed on a commercial liability policy, which covers the contractor in the event of damages after the performance of a contract? a. Completed aggregate b. Damage liability c. Completed performance d. Completed operations

d (CM Pg. 4-9)

A subcontractor wishes to file a lien within 90 days of furnishing materials. The subcontractor began his work on January 1st. The notice of commencement was dated December 25th. In order to have a lien right, the subcontractor would have had to file his Notice to Owner no later than which date? a. March 1st b. February 14th c. February 15th d. February 16th

c (CM Pg. 9-21)

A not in privity subcontractor filed a notice to owner on February 2, 2018, on a job that he had begun on February 1, 2018. If this subcontractor files a lien on April 3, 2018, how many days would he have to enforce the lien once the court clerk had certified and served a contest of lien? a) 30 b) 45 c) 60 d) 365

c (CM Pg. 9-30)

The time within which to file suit on the bond is limited to how many days from the date that the clerk of court certifies that a copy of the Notice of Contest of Claim against Payment Bond was mailed to the bond claimant at the address shown in the notice of non-payment or most recent amendment thereto? a. 30 days b. 45 days c. 60 days d. 120 days

c (CM Pg. 9-52)

In the case of a deceased worker, with wages paid to a beneficiary or estate in the same calendar year as the worker's death, said wages are which of the following? a. Exempt from social security b. Exempt from FUTA c. Exempt from income tax withholding d. Taxable from income tax withholding

c (CM circular e 3-184)

A General Contractor must have a minimum amount of Liability Insurance. Of the stated limits, what is the amount of property coverage required? a. $300,000 b. $100,000 c. $50,000 d. $75,000

c (CM pg. 2-157)

Under the WC Law, if any compensation, payable under the terms of an award, Is no paid within 7 days after it becomes due, it shall be added to such unpaid compensation an amount equal to _____%, in addition to interest thereon at the rate of ____% per year from the date the installment was due until paid. a. 5 &6 b. 10 &8 c. 15 & 10 d. 20 & 12

d (CM 6-173)

In setting up the proper business structure, a sole proprietor working under his own name is exempt from a number of requirements which would be common to a corporation or partnership. Two of these exemptions involve identification items. A sole proprietor does NOT need to make a separate business application for which two items? a. Fictitious Name and Fictitious Registration Number b. Federal Tax I.D. Number (FEIN) and Net Worth Amount c. Qualified Business Organization Number and Fictitious Registration Number d. Federal Tax I.D. Number (FEIN) and Fictitious Name

d (CM Pg. 1-14 & 20)

Which of the following would not require registration as a fictitious name? a) a sole proprietor operating in his or her own name b) a sole proprietor operating in the name of ABC construction c) ABC construction corporation, a subchapter S corporation d) both A and C

d (CM Pg. 1-14, 15)

A secretary is hired on a salary basis of $450.00 per week for a work schedule that fluctuates from week to week. Her salary is intended to compensate her hours worked, whether few or many. In Week #1 she works 30 hours. In Week #2 she works 50 hours. What is her gross pay for Week #2? a. $618.75 b. $281.25 c. $312.50 d. $495.00

d (CM Pg. 5-22)

According to the fair labor act (FLSA), employers are required to keep payroll records for _______ years. All other required records must be kept for ________ years. a) 4,4 b) 4,3 c) 3,3 d) 3,2

d (CM Pg. 5-30)

Under the Williams-Steiger Act, also known as the ________ Act, what is the maximum civil penalty allowed? a. FLSA, $7,000 b. ADA, $17,000 c. DBA, $5,000 d. OSH, $124,709

d (CM Pg. 5-47 & 7-31)

XYZ Construction hired Mr. Smith on January 1, 2009. He was employed until January 1, 2015. Until what date must the required I-9 form be kept by XYZ? a. January 1, 2012 b. January 1, 2013 c. January 1, 2015 d. January 1,2016

d (CM Pg. 5-58)

Who is entitled to receive workers' compensation from a deceased parent benefit? a. A non-dependent stepchild b. An 18-year-old married child c. A 20-year-old single child d. A 21-year-old full-time student child

d (CM Pg. 6-69)

Your company is constructing a 400,000 sq ft warehouse in Boca Raton, Florida under the AIA A201 document. During the course of construction, the owner fails to perform which causes a breach of contract prior to the contract reaching substantial completion. Which of the following is a proper way to calculate the damages to be recovered? a) unreimbursed costs and lost profits b) reasonable value of work performed c) consequential damages d) all of the above

d (CM Pg. 8-24)

In a Construction Management Contract, which of the following is NOT true about the Construction Manager? a. Is a Licensed contractor b. Acts as the owner's agent when entering contracts c. Advised on the design offering advice as to constructibility and costing d. When signing a contract, he is liable for all financial matters

d (CM Pg. 8-8)

Which document is filed as part of the permit process that lists the owner contact information and establishes the legal parameters for subcontractor claims against the project? a. Notice to Owner b. Application for Permit c. Bond c. Notice of Commencement

d (CM Pg. 9-11)

Which of the following is NOT TRUE regarding F.S.713? a. Lien rights cannot be waived b. Any supplier or material man providing materials to another material man does not have a lien right c. No lien may be enforced by a lienor who is not properly licensed at the time of the lien d. An in-privity contractor must file a notice to owner within 45 days of first starting the work

d (CM Pg. 9-21)

Which of the following is not true regarding F.S.713? a) lien rights cannot be waived b) any supplier or material man providing materials to another material-man does not have a lien right c) no lien may be enforced by a lienor who is not properly licensed at the time of the lien d) an in-privity contractor must file a notice to owner within 45 days of first starting the work

d (CM Pg. 9-21)

According to the AlA documents, if the primary General Contractor defaults and the owner files an affidavit to take over the project, how much time do the subcontractors and material suppliers have to file liens if the Notice to Owner is filed property? a. 45 days b. 60 days C. 30 days d. 90 days

d (CM Pg. 9-27)

Which of the following is one way an owner can minimize the risk of having a lien filed on his or her property by non-privity entities? a. Have the contractor submit an affidavit that all persons are paid b. Stay active on the project and talk to the subcontractors c. Have the contractor obtain a performance bond d. Have the contractor obtain a payment bond

d (CM Pg. 9-72)

According to the Circular E, which of the following is the form used to claim credit for overpayments? a. 940 b. 941 c. 944 d. 944 or 941

d (CM circular e 3-179)

What is the filling deadline for a payroll tax return for the 2nd quarter for an employer who has deposited all taxes on time? a) July 1st b) July 31st c) August 1st d) August 10th

d (CM circular-e 3-156)

What type of ratio is the computation of gross profit margin ratio? a) liquidity b) leverage c) activity d) profitability

d (CMPg 3-90)

According to the Drug Free Workplace Act of 1988, where an employer is covered by the act, upon how many days after receiving notification of conviction of a drug violation must an employer take "appropriate action"? a. 15 days b. 20 days c. 25 days d. 30 days

d (Cm Pg. 5-49)

A contract for construction of an office complex was underway. The application for the first draw was made for 34% of completion. In reviewing the application, the architect denied one line item for a total of $2,400. There was a 5% retainage and the contract value was $876,000. What is the amount due the contractor? a. $295,440 b. $297,840 c. $280,548 d. $280,668

d

A Contractor was offered the following terms on a purchase invoice dated March 15, 2008, totaling $20,000: 5% in 10, net 30. The contractor had $10,000 available to apply towards this invoice and had the following additional monies coming in: March 18th- $8,000 due March 19th- $800 due March 21st- $200 due March 22nd- $1,400 due March 26th- $2,000 due Based on the above information only, what is the earliest the contractor can pay the invoice? a. March 21st b. March 23rd C. March 24th d. March 25th

a

Jim, John, and Jane formed a partnership which earned $100,000 during the year. Based on the following original contribution amounts, what is Jane's share of the profits? - Jim= $20,000 - John= $30,000 - Jane= $40,000 a. $44,440 b. $40,000 c. $33,333 d. $30,000

a

All of the following affect the Productivity of Equipment, EXCEPT which one? a. Manufacturer b. Safety c. Experience of operator d. Weather condition

a (CM Pg. 10-27)

Form A701 (Instruction to Bidders Document) states that Contract Sums shall be expressed in both words and figures. In case of discrepancies, what shall govern? a. Figure amount takes precedence b. Amount written in words takes precedence c. Words and figures take precedence d. An architect will dictate

b (A701, 4.1.3)

Which form is used to report Federal Unemployment Taxes? a. 941 b. 940 c. 8109 d. 508

b (BGA Ch. 11, Pg. 138)

What is the correct formula for the delinquent ratio? a. Total sales divided by total credit sales b. Total receivables, divided by delinquent receivables C. Total assets, divided by delinquent receivables d. Total liabilities, divided by credit sales

b (BGA Pg. 66)

A manufacturer offers a 2% 10, net 30 discount arrangement for payments made in cash. If a contractor gets a discount of $484 within 10 days of initial purchase of a material order from this supplier, what would be the actual invoice amount of order? a. $2,420 b. $10,484 c. $24,200 d. $1,484

c (CM 3-73)

A construction job is 40% completed and has a total value of work in place of $240,000. What is the total value of the complete job? a. $240,000 b. $96,000 c. $600,000 d. $800,000

c (CM Pg. 3-79)

The current ratio compares the current assets to the current liabilities. What is the correct math expression of this expression? a. Current liabilities/ Current assets b. Current assets x Current liabilities c. Current assets/ Current liabilities d. None of the above

c (CM Pg. 3-89 & BGA Ch. 23 268)

Which of the following is NOT a typical form of insurance? a. Completed operations b. General Liability c. Forfeiture obligation d. Employee dishonesty & theft

c (CM Pg. 4-13)

According to the Circular E, the Employers tax guide, which of the following is NOT TRUE regarding FUTA payments? a. The base FUTA tax rate is 6.0% b. The FUTA tax rate applies up to the first $7,000 of payments in any given year c. The FUTA tax rate can be adjusted up to a minimum .6% d. The FUTA tax is part of the total withholding amount

d (CM Pg. 3-55)

When does ownership of inventory assets pass to the company? a. When the purchase order is approved by vendor b. When the goods are paid c. When the goods are in transit d. When the goods arrive at the point of deliver

d (CM Pg. 3-58)

ABC Construction negotiated a loan from a local bank. The face value of the loan was $10,000 and the points were discounted. ABC drew down $5,000 for its own use fora 12- month period. The stated interest rate on any monies borrowed was 10%. At the end of the 12-month period, ABC returned the $5,000 it had received, and all interest charged during the period which amounted to $530. It also had to repay the points which had been discounted. What was the total cost of the points (excluding any interest on the points)? a. $500 b. $30 c. $470 d. $300

d (CM Pg. 3-73)

Based on the following information, what is the breakeven point for this company? - direct cost= 85% - fixed expense= $15,000 - variable expense 10% a) $150,000 b) $850,000 c) $100,000 d) $300,000

d (BGA Ch. 14, Pg. 178)

Cost of Goods sold is another name for what? a. Direct costs b. Indirect costs c. Overhead costs d. Fixed costs

a (BGA Pg. 249-333)

A Subchapter S Corporation has a par value of $50,000 with 100,000 shares of stock outstanding. Of the 15 stockholders, Mr. Johns owns 27,500 shares of stock. Under the IRS regulations regarding a Subchapter S Corporation, NO taxes are deducted from the corporate proceeds; instead, profits are calculated and then distributed back to the stockholders in the form of income. If the company earned $75,000 last year, after considering all expenses, what is the total income that Mr. Johns must report from this corporation? a. $20,625 b. $13,750 c. $5,000 d. $50,000

a

A plumbing contractor died before the contract was completed. The amount of work remaining was $1,035. The GC was granted a 7-day extension by the Architect because of the death. The contract with the owner calls for liquidated damages of $40 per day. The GC held $300 in retainage from the original plumber. A new subcontractor was hired at a cost of $1,400. It will take him 3 weeks to complete the job, which results in a 20-day delay in the schedule. What is the additional cost to the contractor? a. $585 b. 1,400 c. $1,035 d. $0

a

In reconciling the company's books with the bank statement for the period ending December 31, 2012, and beginning on January 1, 2013, ABC Construction noted the opening balance for the period as reflected in the company books and confirmed by the prior month's reconciliation of the bank statement was $10,000. The following items were noted: - Bank service charge for the period was $50. - $2,875.50 worth of checks had not yet cleared the bank. - A $4,000 deposit was made on December 30, but not reflected in the bank statement. - A 1,000 deduction from the company checking account was incorrectly made by the bookkeeper. Based on the above information only, what is the correct balance in the company checkbook on January 1st, as verified by the reconciled balance of the bank statement? a. $10,950 b. $11,000 c. $10,074.50 d. $5,050

a

The Contract value is $122,000.00; the percentage of completion is 46%. In the Application for Payment, $22,000 was NOT approved by the Architect because it was NOT COMPLETE. If 5% was retained, what did the contractor receive? a. $32,414 b. $31,314 c. $53,314 d. $21,700

a

A subcontractor may terminate a subcontract for non-payment of outstanding amounts due under the subcontract for how many days? a. 60 days b. 30 days c. 21 days d. 7 days

a (AIA 401, 7.1)

A contractor issues an Application for Payment in compliance with the terms of the AIA A-201 contract signed between the contractor and owner on March 20, 2015. The architect approves and issues a Certificate of Payment to the owner on March 25, 2015. What is the deadline for the owner to pay the contractor? a. March 28, 2015 b. March 30, 2015 c. March 31, 2015 d. April 10, 2015

a (AIA A201, 9.31)

What is the monthly depreciation amount of a vehicle with a total yearly depreciation of $6,000? a. $500 b. $600 c. $700 d. $800

a (BGA 166)

What is the term used to describe the method of determining cost of goods sold, where the cost of material used and inventory available is based on the earliest units purchased? a. FIFO b. LIFO c. Unit by Unit d. Average

a (BGA Ch. 10, Pg. 120)

ABC Construction purchases a new truck for $60,000 which it intends to depreciate over a 10-year period. Considering all methods of depreciation, which depreciation method will yield the MOST depreciation in the 6 year? a. Straight Line b. 150% Declining Balance c. 175% Declining Balance d. 200% Declining Balance

a (BGA Ch. 13, Pg. 166, fig. 13-9)

What is the loss/gain on sales using straight line depreciation of a piece of $25,000 equipment with a useful life of 10 years that is sold after 5 years for $9,000? a. Loss - $3,500 b. Gain - $4,500 c. Gain - $9,000 d. Loss- $12,500

a (BGA Ch. 13, Pg. 170)

In reconciling the company checking and cash accounts for the past quarter, TCI Construction was attempting to find the appropriate method for anticipating cash flow needs for the upcoming quarter. According to the Builder's Guide to Accounting, what is the more precise method for Cash Budgeting? a. Source and Application b. Cash Movement c. Cash Flow Projection d. Sources Flow Projection

a (BGA Ch. 14, Pg. 176)

The breakeven point is that level of sales where a company neither makes nor loses money on its operations. What is the breakeven point of a company with direct costs of $49,400; fixed expenses of $100,000; and selling expenses (variable) of $97,600? a. $247,000 b. $197,600 c. $100,000 d. $97,600

a (BGA Ch. 14, Pg. 178)

An area of a business that produces profits can be referred to as which of the following? a. Cost center b. Net profit center c. Job progress center d. Direct expense center

a (BGA Ch. 15, Pg. 187)

A company is reviewing its bad debts. In the month of January, it had $75,000 in total credit sales and $12,000 in actual bad debt losses. What is its bad debt ratio? a. 1 to 6.25, which means it loses one dollar for every $6.25 sold on credit. b. 1 to 6.25, which means one dollar is on credit for every $6.25 cents it loses c. 16 to 1, which means for every $16.00 dollar sold on credit, it loses one dollar. d. 16 to 1, which means for every $16.00 it loses, one dollar is on credit

a (BGA Ch. 5, Pg. 65)

A company was comparing its credit sales results for two periods of time. In the first- time period, a calculation comparing credit sales to credit losses (bad debt ratio) resulted in a 1 to 48 ratio. In the second period, the same calculation resulted in a 1 to 432 ratio. In which period did the analysis yield a better collection result? a. First Period b. Second Period C .Neither d. Both

a (BGA Ch. 5, Pg. 67)

A reserve for bad debts is listed as a ________ of current assets on a balance sheet. a. Reduction b. Increase c. Enhancement d. Reserve Account

a (BGA Ch. 5, Pg. 68)

The December bank statement is to be reconciled to the cash in bank amount on your December 31st Balance Sheet. As of the beginning of December, your "cash in bank" company account showed an opening balance of $36,425. The bank charges the firm on 12/19 a $25 service charge which the bookkeeper failed to enter. A check mailed out in the amount of $565 on 12/31 was not posted to the cash account. A bank deposit totaling $1,900 made on 12/31 was not posted by the bank until the next calendar year. After reconciling the checking account, it is determined that the correct cash in bank balance that should be shown December 31st is what? a. $35,835 b. $31,488 c. $37,775 d. Not enough information

a (BGA Pg. 218)

If a company has $24,000 in past due accounts receivable and $145,000 in total accounts receivables, what is its delinquent ratio? a. 1 to 6.04 b. 2 to 6.04 c. 6.04 to 1 d. 6.04 to 2

a (BGA-67)

Which of the following would NOT be considered Financial Mismanagement by F.S 489? a. The contractor has stopped a customer's job and the percentage of completion is more or the percentage of the total contract price paid to the contractor at the time of the abandonment b. Valid liens have been recorded against the property of a contractor's customer for supplies or services ordered by the contractor and the contractor had received funds for the customer for these materials and services c. The customer's job was completed, and it was shown that the customer paid more than the contract price as adjusted for change orders d. None of the above

a (CM 2-24)

A company has $900,000 in current assets which includes a $10,000 write off for a bad debt, and a $400,000 in long term assets. Its most recent balance sheet shows short term liabilities of $250,000. Long term liabilities are $375,000. Based on the information above, what is the company's Net Worth? a. $675,000 b. $725,000 C. $660,000 d. $735,000

a (CM 3-12)

Jim Jones starts a business and takes the following steps: Sets up proper filings with the State and Local authorities. Opens a business checking account and deposits $50,000 of his own personal monies as start-up capital, for which he receives the corporate stock. Then Jim Jones takes out a bank loan for $50,000. He also buys a truck for $16,000 and office equipment for $4,750 on account. He bills out $9,250 in accounts receivables and pays invoices for $3,600. Assuming $0 depreciation, what is the company's shareholder equity after the first month? a. $55,650 b. $50,000 c. $66,000 d. $120,750

a (CM 3-13)

According to the Contractor's Manual, in a standard subcontract performance bond, no suit or action shall be commenced on the bond by any claimant: a. After the expiration of two years after the Contractor Default or within two years after Contractor ceased working or within two years after the Surety refuses or fails to perform its obligation, whichever occurs first b. If the claimant gave written notice within 90 days of last furnishing services to the owner or surety c. Inside a proper competent jurisdiction d. B and C

a (CM 4-57)

Which of the following might result in the loss of lien rights? a. Failure of a non-Privity lienor to timely or properly serve the notice to owner b. Failure of an in Privity lienor to timely or properly serve the notice to owner c. Failure of a subcontractor to file a notice of commencement d. Failure of a prime contractor to file a notice of commencement

a (CM 9-21)

Which one of the following is not a Superintendent's task? a. Conduct regular progress meetings with owner/architect b. Prepare and control payroll functions c. Conduct safety meetings and prepare minutes d. Field procurement

a (CM Pg. 10-71 and 10-72)

What is the primary application agency for permits to work in Wetlands in the State of Florida? a. The Florida Department of Environmental Protection b. The US Army Corps of Engineers c. Federal Department of Environmental Protection d. Environmental Protection Agency (EPA)

a (CM Pg. 10-98)

According to F.S. 489, which of the following items would require the posting of the contractor's license number? a. Business proposals b. Promotional items such as pens c. T-shirts d. Give away calendars

a (CM Pg. 2-149)

A contractor who combines and conspires with an unlicensed person or entity to evade a provision of the F.S. Chapter 489 may be fined up to how much? a. $10,000 b. $9,000 c. $5,000 d. $3,000

a (CM Pg. 2-184)

At the beginning of the year, the following information was available concerning TCl's balance sheet: - Current Assets= $10,000 - Current Liabilities= $5,000 - Long Term Assets= $5,000 - Long Term Liabilities= $7,000 During the year, the following transactions occurred: - Current Assets Amount Increased to= $12,000 - Long term Asset Amount Increased By= $2,000 - Long term Liabilities Amount Increased Another= $1,000 Based on the above information only, which of the following statement is correct? a. TCI's net worth increased by $3,000 b. TCI's net worth decreased by $3,000 c. TCI's net worth stayed the same d. TCI's net worth became $3,000

a (CM Pg. 3-12)

TCI construction borrows $15,500 for two years within the following terms: - interest= 10% - points= 5 - loan term= 2 years No payments are made until the end of the term, at which time the loan is to be repaid in full including any principal, interest, and points. At the time of the end of the loan term, what is the total amount that TCI will need to pay off the loan? a. $18,755 b. $19,375 c. $16,500 d. $16,692

a (CM Pg. 3-73)

A job has a current completion value of $64,750. The total cost of the job is $2,870,000. What is the job's percentage of completion? a. .0225 b. .225 c. .225% d. 2.225%

a (CM Pg. 3-79)

TCI Construction is 33% complete on a job. Based on the following information, what is the Cost-to-Date? - Total Cost= $60,000 - Contract Value= $80,000 a. $19,800 b. $30,000 c. $24,000 d. $26,000

a (CM Pg. 3-79)

Which of the following would NOT be a part of a percentage of completion revenue recognition calculation? a. Cash received b. Cost to Date c. Earned or Unearned income d. Cost to Complete

a (CM Pg. 3-79)

A Subcontractor fails to correct a default after being notified in writing by the GC. A Notice of Termination was sent to the Subcontractor and its bonding company. What should the GC do with the subcontractor's equipment and material? a. Equipment and material should remain on site until work is completed b. The GC should take away the Sub's equipment and material c. The subcontractor's equipment and material can be used and subtracted from the outstanding balance d. The subcontractor's equipment and material can be auctioned off after 3 days' notice

a (CM pg. 10-69)

According to a regulatory requirement, a certain document must be filed within 15 days before a deadline. Ignoring any weekends or holidays, if the deadline is the 18th of the month, what day is the earliest the document can be filed? a. 2nd b. 3rd c. 4th d. 5th

b

TCI Construction is tracking its cash movement for the last two quarters. The cash at the beginning of the first period was $2,775. During this period, the company counted $8,600 in trade collections, $2,000 in retainages and $2,400 in cash sales. Payments made include $200 material, $1,200 labor, $1,000 in subcontractors, and $800 in fixed overhead and $200 in selling expenses. During the 2nd quarter, receipts included $1,400 in trade collections and $2,200 in cash sales while payments included $1,500 in labor, $600 in selling expenses, $100 in fixed overhead and $450 in notes and interest. What is the total cash available at the end of the last quarter? a. $1475 b. $13,325 c. $3,900 d. $1,050

b

An allowance shall cover the cost to the Contractor for Materials and Equipment delivered to the site and all required Taxes less applicable Trade Discount. Cost of Uploading and Handling at the site, Labor, Installation costs, Overhead, Profits and other expenses should NOT be included in Allowance. - Material cost= $3,500 - Tax= 6% - Trade discount= 3% - Uploading & handling= $150 - Storage= $50 Based on the information listed above, what will be the total cost difference for this allowance? a. $3,605 b. $3,599 c. $3,500 d. $3,697

b (AIA 201 3.8.2.1)

TCI construction was remodeling a warehouse in which an unknown condition was discovered during the work. The company calculates the additional work necessary to remedy the condition. According to AIA 201 what is the total cost of the remedy? - additional labor= $3,000 - additional material= $2,000 - small hand tool= $500 - overhead= 10% a. $5,000 b. $5,500 c. $6,000 d. $6,600

b (AIA 201, 7.3.4.3)

You were trying to reconcile your bank statement for the month of January. Your checkbook was unavailable, but your bank statement had just been received in the mail. It showed a balance as of the end of the month of January of $15,000. The following facts were brought to your attention: - Bank service charge (regular monthly charge) = $50 - Your bookkeeper failed to enter a deposit into your checkbook for = $500 - Checks which had not yet cleared the bank totaled = $5,000 - A deposit you made on January 31s for $1,500 was not included in the bank statement Based on only the information above, what is the correct amount of money in the books as of the end of January? a. $9,950 b. $11,500 c. $14,450 d. $10,500

b (BGA Ch. 20, Pg. 245)

ABC Construction was evaluating its income statement for the prior year. Using the FIFO method of valuing inventory, the total cost of goods sold (hard Costs, including all labor, material, subcontractors, and related expenses) was 87.5% of total sales (after adjusting for refunds). If these total sales were $2,476,321, what would be the total gross profit amount? a. $2,166,780 b. $309,540 c. $216,678 d. $30,954

b (BGA Ch. 21, Pg. 249)

Based on the information below for a newly formed company, what is the net worth at the end of the 6-month period? - Total number of shares of stock: 100 - Initial Capital Contribution: $100,000 - Initial Net worth: $100,000 By the end of the first 6 months of operations, the following transactions had occurred: - Materials purchased on credit: $20,000 - Outstanding Invoices paid: $10,000 - Outstanding Receivables collected: $10,000 - Ongoing work billed out: $55,000 - Cost of goods sold: $43,000 a. $100,000 b. $112,000 c. $110,000 d. $120,000

b (BGA Ch. 21, Pg. 249)

A company has reviewed its income statement for the past year. If hard costs represented 63% of gross income, what was the gross profit margin for the company, if total revenue were $473,265? a. $298,156 b. $175,108 c. $473,265 d. $222,434

b (BGA Ch. 21,, Pg. 249)

What is the correct term for earned interest on a loan after considering the amount borrowed against the stated interest rate? a. Discount b. Yield c. APR d. Face Value

b (BGA Ch. 28, Pg. 316)

According to the Builder's Guide to Accounting, in an accrual accounting system which records accounts receivables, what is the name of the document which tracks the length of time a receivable is outstanding? a. Days of outstanding receivables b. Aging list c. Imprest list d. Chat of accounts

b (BGA Ch. 3, Pg. 46)

The determination of a bad debt ratio allows for the provision of a reserve for bad debts. Such a reserve represents a(n) ______ in total assets. a. Increase b. Decrease c. No effect d. None of the above

b (BGA Ch. 5, Pg. 64)

TCI is evaluating expansion plans which call for the marketing of single-family homes in a subdivision known as Great Lakes. The typical house will be a 2500 sq. ft., 4 bedrooms, 2 baths on a 150 x 300' lot. In setting up the marketing plan, TCI decides that it will treat the effort as a separate division within its overall operation and will establish separate offices for this purpose. TCI has projected that the first year's sales will be between $200,000 and $700,000 and that the estimated margin after direct costs will be 19% of sales. Variable selling costs, including advertising and sales commissions, excluding overhead, are estimated at 7% while office operations, and all other fixed expenses will be approximately $69,000. At what level of sales will the new operation break even? a. $675,000 b. $575,000 c. $475,000 d. $375,000

b (BGA Pg. 178)

The completed contracts method of accounting can only be used on jobs lasting for how many years or less? a. 1 b. 2 c. 3 d. 4

b (BGA Pg. 25)

A reserve for bad debts is: a. An increase in current assets b. A reduction of current assets c. An increase of current liabilities d. A reduction of current liabilities

b (BGA Pg. 68)

Comparing total net profit to total investment, a company revealed a ratio of 1.5-to-1. Which of the following is the equivalent of this expression? a. 1.5% b. 150% c. 15.0% d. .150%

b (BGA ch. 23, Pg 272)

Gross Profit divided by Sales equals which of the following? a. Current ratio b. Percentage of gross profit c. Present ratio d. Quick ratio

b (BGA ch. 23, Pg. 272)

In 2018, a contractor borrowed $40,000 for operations. The stated interest rate was 10% per year. The loan was made for one year and then paid back in its entirety. The points, as fees, had been discounted from the face value of the loan, which was $50,000. The total cost for all interest for the year was $4,300. Based on the above information only, what were the points on the an? a. $3,000 b. 6 c. 3 d. $6,000

b (CM 3-73)

According to the Contractor's Manual, which of the following would calculate the cost of a permit bond to cover a job which is estimated to take 18 months? a. The contractor, in accordance with the table in the Contractor's Manual b. The Surety c. The local building department d. The small business administration

b (CM 4-17)

Which of the following insurance policies would protect a company against employee embezzlement? a. Blanket crime policy b. Fidelity bond c. Comprehensive theft d. Comprehensive liability

b (CM 4-8)

Under the worker compensation law, a casual employee is one who meets several criteria. One of these criteria must do with the number of days someone has worked. In this context, a casual employee is one who has worked fewer than how many days? a. 5 b. 10 c. 15 d. 30

b (CM 6-70)

According to the Circular E, supplemental wages can be subject to a flat withholding amount of what percent? a. 20% b. 25% c. 28% d. 32%

b (CM Circular e 3-166)

Why is a Surety Bond not considered insurance? a. Insurance is a three-party agreement; Bonds are a two-party agreement b. Insurance is a two-party agreement; Bonds are a three-party agreement c. Insurance involves an element of risk; Bonds involve an element of reward d. There is no effective difference

b (CM Pg, 4-13)

After a contract is awarded to a company, what is one of the first tasks for the project manager to accomplish? a. Project Planning b. Project Schedule c. List of long lead items d. Ordering of long lead items

b (CM Pg. 10-63)

Who issues the permit to work in the Wetlands in the State of Florida? a. Florida Department of Environmental Protection b. The US Army Corps of Engineers c. Federal Department of Environmental Protection d. Environmental Protection Agency (EPA)

b (CM Pg. 10-98)

Which of the following individuals are exempt from licensure under F.S. 4892? a. A handyman, performing work on residential construction b. A water conditioner installer c. A water closet installer d. A drywall installer

b (CM Pg. 2-67)

TCI Construction had the following information available from its balance sheet. What are the total assets? - Current assets= $50,000 - Retained earnings= $75,000 - Current liabilities= $45,000 - Total liabilities= $70,000 - Net worth= $80,000 a. $50,000 b. $150,000 c. $110,000 d. $125,000

b (CM Pg. 3-12)

Which of the following is a book, which lists by date all the transactions a company makes which will later be translated into the financial statements? a. General account b. Journal c. Balance sheet d. Income statement

b (CM Pg. 3-25)

What types of assets are generally not turned into cash in the ordinary course of business? a. Current assets b. Fixed assets c. Semi-fixed assets d. Equity

b (CM Pg. 3-29)

Based on the credit line characteristics above, if TCI Construction borrowed the full amount for one year, what is the actual total cost of this loan expressed as a percentage of the face value? a. 10% b. 12% c. 12.5% d. 13%

b (CM Pg. 3-73)

TCI Construction is looking to borrow funds for its operations for a period of one year. No points are involved. If the loan costs $4,680 and the total amount borrowed is $52,000, what was the interest rate on the loan? a. 10% b. 9% c. 11.11% d. 12.0%

b (CM Pg. 3-73)

What is the annual effective interest rate of a one year, $100,000 loan which has a stated interest rate of 10% and points of "2 points discounted"? a. 10% b. 10.2% c. 11.2% d. 12.2%

b (CM Pg. 3-73)

A construction job is bid at $350,500. If it is 60% finished, what is the total value of the work in place? a. $140,200 b. $210,300 c. $350,500 d. $175,250

b (CM Pg. 3-79)

Based on the following information, what is the cost to complete this project? - Contract Value= $250,000 - Total Cost= $200,000 - Cost to date= $50,000 - Billings= $75,000 a. $200,000 b. $150,000 c. $250,000 d. $125,000

b (CM Pg. 3-79)

According to the Contractor's Manual in the completed contracts method of accounting, a contract should be considered complete, if it has reached what percentage or more? a. 100% b. 98% c. 97% d. 95%

b (CM Pg. 3-80)

When a project is completed, who gets the plans and drawings? a. The Contractor b. Architect c. Owner d. County library

c (AIA 201, 3.11)

The subcontractor shall report within how many days to the contractor any injury to any of the subcontractor's employees at the site. a. 1 day b. 2 days c. 3 days d. 4 days

c (AIA 401 4.4.1)

The owner must prove financial capability no later than how many days prior to the expiration of time for withdrawal of bids? a. 3 days b. 5 days c. 7 days d. 10 days

c (AIA 701, 6.2)

A GC has applied for Payment for work performed by him and the plumbing subcontractor. However, the Architect has not approved the subcontractor's amount, for no fault of the sub. Per the AlA A-401, what is the course of action the GC must take in regard to this subcontractor? a. Demand payment from owner b. Ask the sub for additional time c. Shall pay the subcontractor, on demand d. Resubmit the application for payment

c (AIA A401 11.1.3)

According to the AlA Documents, no substitution will be considered prior to receipt of bids unless written request for approval has been received by the Architect at least how many days prior to the date for receipt of bids? a. 3 days b. 7 days c. 10 days d. 21 days

c (AIA A701 3.3.2.1)

An addendum reflects changes performed by the Architect in a project. When must it be published? a. Before the contract is awarded b. After the contract is awarded c. Before the opening of the bids d. None of the above

c (AIA A701.3.4.3)

Your company purchases a truck for $22,500 and intends to depreciate it over a 10-year period. The truck has a projected salvage value of $3,500. If the goal of your company is to sell the truck when its book value is approximately $8,000, in what month would your company sell the truck? (Select the closest month) a. Month 43 b. Month 51 c. Month 92 d. Month 102

c (BGA 166)

In accounting terms, what does the word "gross" usually mean? a. After an adjustment b. After a net calculation c. Before an adjustment d. At the very beginning, with no adjustment

c (BGA Appendix B, Pg. 333)

According to the builder's guide to accounting, the handling of materials accounts for from ___% to ___% of total cost in residential construction. a. 4 to 6 b. 6 to 8 c. 8 to 10 d. 10 to 12

c (BGA Ch. 10, Pg. 115)

A truck was purchased for $15,000 and depreciated over a 10-year period. If the rate of depreciation was $1,000 annually, what was the projected salvage value for the truck? a. 0$ b. $12,000 c. $5,000 d. $2,500

c (BGA Ch. 13, Pg. 163)

How many years of useful life were used in this calculation given the following information? • Cash value $40,000. • Salvage value =0. • Straight line depreciation for the first year = $4,000. a. 5 years b. 7 years c. 10 years d. 12 years

c (BGA Ch. 13, Pg. 163)

A new truck costs $50,000 and is being depreciated over 10 years. In the first year the depreciation is $10,000. Which type of declining balance depreciation method was used? a. 125% b. 150% c. 200% d. 300%

c (BGA Ch. 13, Pg. 166)

What method of budgeting is valuable for builders who have wide variations in their business volume from month to month? a. Source and applications of funds method b. Capital budgeting c. Cash movement method d. Break even method

c (BGA Ch. 14, Pg. 176)

Which of the following methods only involves budgeting the actual cash in and out of a business? a. Source and applications of funds method b. Capital budgeting c. Cash movement method d. Break even method

c (BGA Ch. 14, Pg. 176)

What is the point at which gross profit equals all indirect costs? a. gross profit margin b. true turnover c. breakeven point d. point of no return

c (BGA Ch. 14, Pg. 178)

A company was evaluating its performance standards in anticipation of a new job. In the last job, the following performance and standards were reported: - A (crew), 80 (standard hrs.), 100 (actual hrs.) - B (crew), 62 (standard hrs.), 72 (actual hrs) - C (crew), 49 (standard hrs.), 59 (actual hrs) - total: 191 (standard hrs), 231 (actual hrs) Using a 5-man crew working an 8-hour shift with the same performance standard as the collective efficiency of the three crews above, for a job with a performance standard of 380 and which was to begin on Friday, January 6th; what is the estimated date of completion? (Note: no work is to be done on Saturdays and Sundays.) a. Thursday, January 19th b. Friday, January 20h c. Monday, January 23d d. Tuesday, January 24h

c (BGA Ch. 15, Pg. 190)

A job has a percentage of completion of 47.5% and billings of $52,500. If its total cost is $104,900 and a completed contracts determination of accrued income, what is the total amount of income? a. $104,900 b. $49,827.50 c. $0 d. $52,500

c (BGA Ch. 2, Pg. 24 & 25)

Given the following income statement, what is the total net profit (or loss) of the company? - Total Sales= $750,000 - Direct Costs= $500,000 - Gross Profit= $250,000 - Variable Expense= $50,000 - Fixed Expense= $75,000 a. $750,000 b. $250,000 c. $125,000 d. $75,000

c (BGA Ch. 21, Pg. 248)

Based on the following information from TCI's income statement, what is the company's gross profit? - Total Sales= $25,000 - Direct Costs= 65% a. $25,000 b. $16,250 c. $8,750 d. $6,250

c (BGA Ch. 21, Pg. 249)

Which of the following would NOT be a part of a net worth calculation? a. Retained Earnings b. Net Profit c. Gross Profit d. Assets and Liabilities

c (BGA Ch. 21, Pg. 249)

What is the ratio used to determine the financial outlook of the company, which compares current assets against current liabilities? a. Quick Ratio b. Margin Ratio c. Current Ratio d. Investment Ratio

c (BGA Ch. 23, Pg. 268)

Given the following information on XYZ Construction, what is the quick asset ratio? • Total current assets: $100,000 • Total short-term assets: $50,000 • Total inventories: $10,000 • Total current liabilities: $200,000 • Total long-term liabilities: $50,000 • Total liabilities: $250,000 a. 0.2 to 1 b. 1 to 0.2 c. 0.45 to 1 d. 1 to 0.45

c (BGA Ch. 23, Pg. 269)

Which of the following is a correct expression of the Ratio "Net Worth to Assets"? a. Assets/Net Worth b. Net Worth/Current Assets c. Net Worth/Total Assets d. Net Worth * Assets

c (BGA Ch. 23, Pg. 270)

What is the gross profit to sales ratio for a company with the following: - gross profits of $157,355 - net income of $527,621; and - sales of $629,420? a. 20% b. 23% c. 25% d. 29%

c (BGA Ch. 23, Pg. 272)

Given the following income statement, what is the variable expense expressed as a percentage? a. 66.7% b. 30% c. 6.67% d. 10%

c (BGA Ch. 23, Pg. 273)

According to the Builder's Guide to Accounting, the difference of one half of one percent on a 10-year loan for $30,000 is about how much over the life of the loan? a. $8.35 b. $835 c. $1,000 d. $8,350

c (BGA Ch. 28, Pg. 315)

According to the Builder's Guide to Accounting, a receivable over 30 days outstanding will be listed and tracked in accordance with which of the following? a. Days of Outstanding Receivables b. Bad debt Ratio c. Aging List d. 30 days moving average

c (BGA Ch. 3, Pg. 46)

Which of the following is NOT true? a. A pegboard system is a manual method of record keeping b. An open invoice system is a method of controlling inventory c. A reserve for bad debts will not help you save taxes d. An employee must report an injury to an employer within 30 days of its occurrence

c (BGA Ch. 5, Pg. 64)

A contractor was reconciling his accounts for the past month. In this month, he had two jobs in progress. First, was a job the income of which was based on the of completion method. The second was based on the completed contracts method. During the month, the first job advanced from 10% completion to 20% completion and the contract value of the entire job was $240,000. No Billings for this job where set out. The second job progressed from 20% completion to 40% completion with the entire month, the 40% being billed for in the amount of $80,000. In determining earned income for the month, the contractor calculated the earnings on each job based on the accrual method of accounting. What was the total earned income for the month for BOTH jobs? a. $104,000 b. $80,000 c. $24,000 d. $28,000

c (BGA Ch. Pg. 23)

Which of the following is the reason that the quick asset ratio is different than the current ratio? a. It includes inventories b. It uses information from the balance sheet c. It excludes inventories d. It uses information from both the income statement and the balance sheet

c (BGA Ch.. 23, Pg. 269)

TCI is reviewing its first year of operations. During this time TCI invested $4.000 in organizational expenses, including $1,500 in professional fees. The start-up fees may be ________ over several years. a. Depreciated b. Deferred c. Amortized d. Capitalized

c (BGA Pg. 144 & 169)

TCI replaced their old truck which had a book value of $5,000 with a new pickup truck on Feb. 14, 2016. The sticker price of the new truck was $18,70. In negotiations, TCI could not reach an agreement with the dealer as to the trade in value of their old truck and they decided to sell it to an employee who was offering them the same value the dealer was offering, $4,000. The capitalization of the new truck will begin with a basis of how much? a. $10,750 b. $13,750 c. $18,750 d. $19,750

c (BGA Pg. 170)

The current and quick asset ratios are examples of what kind of ratios? a. Combined ratios b. Income ratios c. Liquidity ratios d. Return on investment ratios

c (BGA Pg. 174 & CM 3-89)

TCI Construction was analyzing its overhead for the prior quarter in which a remodeling job was completed. According to the Job Cost Ledger, direct costs for this job were $18,800, while direct costs for all jobs for the month were $39,850. The total general overhead expenses for the month were $3,700. The amount of general overhead expense to be charged to the remodeling job should be how much? a. $840 b. $1,245 c. $1,745 d. $2,150

c (BGA Pg. 201-202)

Under F.S. 489, which of the following is NOT EXEMPT from having a contractor's license? a. A licensed real estate broker contracting for repairs on listed properties worth under $5,000 in value b. A home built by Habitat for Humanity or its affiliates c. A repair worth less than $5,000 for an individual homeowner by a non-licensed emplovee d. Persons who install and maintain water conditioning units

c (CM 2-7)

TCI Construction was an established corporation with 1.2 million shares of common stock outstanding and 200,000 shares of preferred stock outstanding. The treasury held no stock on inventory, and the common stock had voting rights under the corporate charter. In the event of dissolution of the corporate assets, the assets would be divided between the shareholders in accordance with which of the following basic principles? a. The preferred stock holders would get a 1.2 to 2 stake in the corporate holdings b. The general stockholders would get a 2 to 1.2 stake in the corporate holdings c. The preferred stockholders would get a 100%% first claim stake in corporate holdings d. The general stockholders would get a 1007% first claim stake in corporate holdings

c (CM 3-44)

ABC construction has 3 employees, each earning over $25,400 per year. Assuming that the employer took no possible credits, what would the total yearly FUTA tax liability paid by all three employees? a. $1,302 b. $434 c. $0 d. $168

c (CM 3-55)

An individual, who violates the prohibitions against smoking, is subject to a non-criminal fine of up to $100 for a first offense and up to what additional fine for each subsequent offense? a. $200 b. $250 c. $500 d. $1,000

c (CM 5-49)

A not in Privity subcontractor filed a notice to owner on February 2nd, on a job that he had begun on February 1st, If this subcontractor files a lien on April 3rd, how many days would he have to enforce the lien once the court clerk had certified and served a contest of lien? a. 30 b. 45 c. 60 d. 365

c (CM 9-30)

Once a sworn statement of account is serviced, the noticed party has how many days to respond? a. 15 b. 20 c. 30 d. 90

c (CM 9-35 & 36)

According to the 2016 Employer's Tax Guide, what is the total FUTA tax liability to the employer for an employee earning in EXCESS of $87,000 with the employer taking NO allowable credit? a. $5,394.00 b. $10,788.00 c. $420.00 d. $42.00

c (CM Circular e 3-182)

Which of the following is not true about corporations? a. With an "S" corporation there is no corporate tax, you can pay taxes as an individual b. Closely held corporations operate more informally c. There is no limit of shareholders for either a C-Type or S-Type corp. d. C-Type corporations have the possibility of double taxation

c (CM Pg. 1-13)

In setting up a business, a company determines that it needs a fictitious name. With which branch of government would the application be made? a. Clerk of the county Courts in the County in which the company would operate b. Secretary of State c. Divisions of Corporations d. Construction Industry Licensing Board

c (CM Pg. 1-14)

General Contractors generally subcontract what percent of the work? a. 30% b. 40% c. 50% d. 60%

c (CM Pg. 10-54)

Your company has just signed a standard AlA 201 agreement to build a residential room addition on an existing house. The total contract value is $78,500 for which you have received $10,500 as an advanced payment. Once the permits have been obtained, how long does your company must start the work? a. 30 days b. 60 days c. 90 days d. 120 days

c (CM Pg. 2-90)

XYZ Construction company has the following financial information available for review: - Short term liabilities= $60,000 - Short term assets= $90,000 - Total liabilities= $100,000 - Net worth= $450,000 - Retained earnings= $65,000 Given this information only, what are the total assets of the company? a. $90,000 b. $450,000 c. $550,000 d. $200,000

c (CM Pg. 3-12)

Which of the following is a method of keeping track of each individual invoice, together with each partial payment made against it? a. Open ended b. Close ended c. Open invoice d. Revolving invoice

c (CM Pg. 3-46)

Given the same loan above, where $5,000 was needed for 12-month period, the points were discounted, and the total interest charged for the 12-month period was $530. What is the effective yield of the loan? a. .106% b. 1.06% c. 10.6% d. Unable to determine

c (CM Pg. 3-73)

A company undertakes a contract with the following information: - Total Contract Value= $750,000 - Total Cost to Date= $80,000 - Total Cost to Complete= $600,000 Based on the above information only, what is the percentage of completion of this job? (Select the closest answer) a. 8% b. 10% c. 12% d. 14%

c (CM Pg. 3-79)

A company with several remodeling jobs was evaluating its percentage of completion for a warehouse project. In reviewing its income statement for the above referenced job, the company had $236,375 of invoicing on a 27% cost of completion. What was the total contract value? a. $63,821 b. $236,375 c. $875,463 d. $975,465

c (CM Pg. 3-79)

A job with a contract value of $125,000 has a $20,000 cost to complete. If it has a percentage of completion of 80%, what is the cost to date? a. $105,000 b. $100,000 c. $80,000 d. $25,000

c (CM Pg. 3-79)

Based on the following information for a TCl job-in-progress, what is the Cost-to-Date (CTD)? - Percentage of Completion (%)= 40% - Total Cost= $100,000 - Cost to Complete (CTC)= $60,000 a. $5,000 b. $60,000 c. $40,000 d. $80,000

c (CM Pg. 3-79)

TCI construction had a 12.5% completion rate on a $100,000 project. If the cost to date on the project was $10,000 and the total cost was $80,000, what was the estimated cost to complete? a. $90,000 b. $80,000 c. $70,000 d. $100,000

c (CM Pg. 3-79)

Which of the following is the type of contract which provides payments to the contractor based on direct labor hours at fixed hourly rates and which may include the cost of materials or other specified costs? a. Unit price b. Cost plus c. Time and material d. Fixed price

c (CM Pg. 3-79)

In the case of a forfeiture obligation, a contractor who defaults during the bidding must do which of the following? a. Pay the difference between his bid and the next lower bid b. Pay the liquidated provision specified in the construction contract c. Give up the bid amount as stated on the bid bond d. Give up the surety guarantee

c (CM Pg. 4-13)

The fees shown below for a performance and payment bond are based on a 10-month job completion schedule. Should the work exceed 10 months, the rates are to be increased by 1.5% per month for each month over 10 months. •Cost per 1,000 of coverage: $8.50 for the first $100,000 •$7.00 for the next $350,000 •$6.00 for the next $250,000 •$5.00 for any remaining amount The job in question is valued at $1,750,000 and is projected to take 15 months to complete. Based on the above information only, what is the cost of the bond? a. $10,050 b. $10,502.25 c. $10,803.75 d. $11,204.25

c (CM Pg. 4-17)

ABC Construction completes an industrial building. During operations, all plumbing, mechanical, and electrical work is complete. After the work, has been completed, a defective water heater bursts which creates extensive water damage throughout the main office complex. Which type of insurance would cover such a contingency? a. General liability b. Builder's risk c. Completed operations rider d. Errors and omissions insurance

c (CM Pg. 4-9)

A pipe fitter was hired to install 2,000 LF of piping on a project on a piece-work basis. He was paid $12.25 per 100 LF. He worked Monday through Friday from 7:00 AM to 6:00 PM with a 1-hour lunch break. The Contractor agreed to pay him as part of the contract an extra $45 if the work was completed in a week. What was his total compensation for the week? (Select the closest amount) a. $290 b. $319 c. $399 d. $450

c (CM Pg. 5-21, 22)

TCI Construction is evaluating the balance on three accounts: Cash in bank: Accounts Receivable; and Accounts Payable. At the beginning of the month, the correct balances were: - Cash in Bank= $10,000 - Account Receivable= $5,000 - Accounts Payable= $7,000 During the course of the month, the following transactions occurred: - Cash received from Accounts Receivable= $2,000 - Amounts paid to Accounts Payable= $1,000 - Cash received from New Business= $3,000 - New Accounts Payable= $2,000 What are the corrected balances at the end of the month? a. Cash in Bank $14,000; Accounts Payable $3,000; Accounts Receivable $7,000 b. Cash in Bank $15,000; Accounts Payable $4,000; Accounts Receivable $8,000 c. Cash in Bank $15,000; Accounts Payable $6,000; Accounts Receivable $8,000 d. Cash in Bank $14,000; Accounts Payable $8,000; Accounts Receivable $3,000

d

The owner's right to carry out work which was begun by the contractor, but not completed, may occur after giving the contractor(s) how many days' notice? a. 3 days b. 5 days c. 7 days d. 10 days

d (AIA 201, 2.5)

On December 5, 2005, the ownership of a job your company was undertaking was changed. The contractor must furnish to the subcontractor upon written request information necessary to evaluate the mechanic's lien rights within how many days? a. 15 b. 21 c. 45 d. 30

d (AIA 401)

ABC Electrical has been awarded a Contract to perform the electrical work on a project. According to the AIA documents, ABC cannot send a Notice of Claims to the GC on the project by way of? a. Certified mail b. Registered mail c. Courier with proof of delivery d. Electronic format as per AIA document E 210

d (AIA A401 14.4.2)

Which of the following financial concepts is not usually used to calculate a profit and loss statement? a. invoice record b. open invoice c. open record d. purchase order

d (BGA 116)

Based on the following historical information, what is the company's breakeven point? - gross profit margin= 70% - last year's sales= $753,248 - fixed overhead= $50,000 - variable expenses= $34,00 a. $81,500 b. $29,754 c. $63,575 d. $76,348

d (BGA 178)

Based on the following information from the TCI Construction Income Statement, at what level of sales would the company neither make nor lose money (breakeven point)? • Total Revenues= $450,000 • Direct expenses= 60% • Indirect expenses included variable expenses= 15% • Fixed overhead expenses $45,000 a. $190,000 b. $300,000 c. $67,500 d. $180,000

d (BGA 178)

Given the following income statement, what would be the projected level of sales at which the company would neither make nor lose money (the breakeven point)? a. $500,000 b. $200,000 c. $300,000 d. $281,320

d (BGA 178)

In calculating the net worth of a company, which of the following would NOT be relevant information? a. Short Term Assets b. Short Term Liabilities c. Retained Earnings d. Fixed Overhead

d (BGA Appendix B, Pg. 333)

Which of the following items would NOT be a part of a balance sheet? a. Depreciation b. Net worth c. Current assets d. Cost of goods sold

d (BGA Appendix B, Pg. 333)

Which of the following is NOT a correct expression of the relationship between owner's equity, total assets, and total liabilities? a. Assets = Liabilities + Owner's Equity b. Owner's Equity = Assets minus Liabilities c. Owner's Equity + Liabilities = Assets d. Liabilities - Owner's Equity = Assets

d (BGA Ch. 1, Pg. 17)

According to the Builders Guide of Accounting, materials represent about what percent of the cost of goods sold? a. 20% b. 30% c. 40% d. 50%

d (BGA Ch. 10, Pg. 115)

Which form is used to deposit Federal Unemployment Taxes? a. 941 b. 940 c. W-4 d. 508

d (BGA Ch. 11, Pg. 138)

In reviewing an income statement, which of the following is the type of expense which should NOT be translated into a percentage expense? a. Direct Expense b. Selling Expense c. Variable Expense d. Fixed Expense

d (BGA Ch. 12, Pg 148)

Which of the following is NOT considered a Fixed Asset? a. Small tools b. Land c. Buildings d. Depreciation

d (BGA Ch. 13, Pg. 156)

On a company's chart of accounts, which assets are you NOT allowed to claim depreciation on? a. Inventory b. Land c. Goodwill d. All of the above

d (BGA Ch. 13, Pg. 162 & Ch. 21, Pg. 253)

In the first year of depreciation, which method would yield the greatest amount of depreciation? a. Straight Line b. 125% declining balance c. 150% declining balance d. 200% declining balance

d (BGA Ch. 13, Pg. 163)

ABC Construction purchases a new truck for $35,000, which it intends to depreciate over a 10-year period. At the end of the second year of ownership, which depreciation method will yield the LEAST book value? a. Straight Line b. 150% Declining Balance C. 175% Declining Balance d. 200% Declining Balance

d (BGA Ch. 13, Pg. 166)

You have an asset with a useful life of 10 years that cost you $8,000. You are using double declining depreciation. How much will it depreciate after the first year? a. $400 b. $800 c. $1,200 d. $1,600

d (BGA Ch. 13, Pg. 166)

According to the Builder's Guide to Accounting, when can a vehicle purchased on a lease option begin to depreciate? a. Never b. At the end of lease c. At the conversion to purchase d. Immediately

d (BGA Ch. 13, Pg. 170)

Which of the following would NOT be required when calculating the breakeven point of a company? a. Cost of goods sold b. Overhead c. Margin of profit d. Retained earnings

d (BGA Ch. 14, Pg. 178)

Which of the following would not be a recommended action for jobs with unacceptably low profits, according to the Builder's Guide to Accounting? a. Institute new controls to increase productivity on those jobs b. Get out of those markets c. Accept low profits as inevitable in some seasons and try to offset them d. Expand the volume of those jobs

d (BGA Ch. 15, Pg. 189)

ABC construction had a front-end labor which was used on 3 jobs in the prior year. The use of the machine and its cost was recorded in a jail cost ledge as follows: - Smith, 74 (hours of use), $8,200 (total cost) - Jones Addition, 127 (hours of use), $14,000 (total cost) - Edison Home, 62 (hours of use), $9,300 (total cost) The above use patterns and costs include all operator, fuel, and repair expenses. Days of use were NOT recorded. According to the Builder's Guide to Accounting, the correct adjusted job cost analysis for the Edison home should allocate how much money for the adjusted cost for the use of the equipment on that job? a. $9,300 b. $10,500 c. $8,596 d. $7,426

d (BGA Ch. 16, Pg. 201)

How are day-to-day expenses handled best? a. Petty cash system b. Out-of-pocket expenses c. Credit cards d. Imprest system

d (BGA Ch. 17, Pg. 207)

In reviewing its past year of operations, TCI Construction noticed that its direct costs were 65% of total income. If next year TCI projects sales to increase 23%, what will its gross profit margin be? a. 77% b. 79% c. 45% d. 35%

d (BGA Ch. 21, 249)

If a company has $250,000 in total sales for the year, and earns a gross profit of $200,000, what are its direct costs? a. $250,000 b. $450,000 c. $200,000 d. $50,000

d (BGA Ch. 21, Pg. 249)

Which of the following is correct? a. Assets = Liability- Net Worth b. Standard hours/ Actual hours = Standard labor rate c. (Short term assets + Inventories)/ Short term liabilities = quick assets ratio d. Gross profit + Direct expenses = Total Sales

d (BGA Ch. 21, Pg. 249)

Current Assets divided by which of the following equals Current Ratio? a. Fixed assets b. Expenses c. Working capital d. Current liabilities

d (BGA Ch. 23, Pg. 268)

ABC Construction has a current ratio of 1.66 to 1. If ABC has $30,000 in current liabilities. what are its current assets? (Select the closest answer) a. $10,000 b. $20,000 c. $30,000 d. $50,000

d (BGA Ch. 23, Pg. 268, 269)

Which of the following is NOT an example of a Balance Sheet Ratio? a. Current Ratio b. Quick Assets Ratio c. Net Worth to Assets d. Gross Profit to Sales

d (BGA Ch. 23, Pg. 268, 269)

If an income statement for a company has the following information: - Revenues of $560,000; - other miscellaneous income of $62,000; - net profit of $77,750. What is the company's net profit margin? a. 8% b. 9% c. 10% d. 12.5%

d (BGA Ch. 23, Pg. 272)

Cash sales include which of the following? a. Payment in currency b. Payment by check c. Advance payment d. All of the above

d (BGA Ch. 3, Pg. 37)

Cash sales should be listed by date, so you can do which of the following? a. Make reports b. Pay sales tax c. Enter in sales ledger d. All of the above

d (BGA Ch. 3, Pg. 38)

What is the document used to track receivables? a. Receivables list b. Delinquency list c. Outstanding days of receivables list d. Aging list

d (BGA Ch. 3, Pg. 46)

A reserve for bad debts can do which of the following? a. Save on expenses b. Increase collection results c. Save on accruals d. Save on taxes

d (BGA Ch. 5, Pg. 64)

An unfavorable bad debt trend is determined by which of the following? a. Delinquent receivables and bad debts were the same while credit sales were decreasing in relation to total sales. b. Delinquent receivables were the same while bad debts were increasing c. Delinquent receivables were increasing d. All of the above

d (BGA Ch. 5, Pg. 67)

Based on the information below, what is TCI's delinquent ratio? - Total Credit Sales= $100,000 - Total Receivables= $50,000 - Delinquent Receivables= $10,000 - Actual Bad Debt Losses= $2,000 - Total Sales= $150,000 a. 4 to 1 b. 5 to 1 c. 1 to 4 d. 1 to 5

d (BGA Ch. 5- Pg. 66)

As volume and cash profits increase, which of the following should be kept under control? a. Direct cost b. Margin of profit c. Fixed overhead d. Selling expenses

d (BGA Ch. 8, Pg. 91)

Which of the following is an example of a manual record keeping system? a. A record of Payables b. Keyhole System c. Cash Management System d. Pegboard System

d (BGA Ch. 9, Pg. 103)

A company that has $18,276 in average receivables for the month and a prior twelve months of charge sales of $246,003 has how many average days of outstanding receivables? a. 33 b. 23 c. 25 d. 27

d (BGA Pg. 55)

The name of the form which is used to apply for sales tax is? a. W2 b. W5 c. S1 d. DR-1

d (CM 1-21)

In the event that a contracting company is discovered to be misappropriating funds, which of the following members of the company might be exempt from liability? a. The Primary Qualifier b. The Financially Responsible Officer c. The Unlicensed Principal d. The Secondary Qualifier

d (CM 2017)

An individual is licensed under F.S. 489 and is the primary qualifier for ABC Construction, Inc. During the course of operations, it was determined upon the formation of a probable cause panel that the individual and the corporation were guilty of combining and conspiring with an unlicensed person to evade provisions of the Florida Statutes. What is the maximum total fine that both the individual and the company could collectively face? a. $500 b. $1,000 c. $18,000 d. $20,000

d (CM Pg. 2-184)

Of the required hours of continuing education, how many hours of Business Practices are required? a. 14 b. 3 c. 4 d. 1

d (CM Pg. 2-190)

Which of the following is NOT a requirement of F.S. 489? a. A division one contractor accepting more than 10% of a contract amount up front as a deposit must apply for permits within 30 days b. If a General Contracting company loses its primary qualifying agent, it must obtain a new one within 60 days. If it has secondary qualifying agents, they will all automatically become primary qualifying agents c. Any change of address on an existing license must be submitted to the department within 30 days d. Any claim against the recovery fund must be made no later than 2 years from the date giving rise to the claim, or within 2 years from the time the act was discovered by in no case, may the claim be made more than 4 years from the act giving rise to the claim

d (CM Pg. 2-202)

Under the Construction Contracting Law, F.S. 489, who is an individual who holds a license and can be held accountable for activities in the field only in the area in which he or she has declared themselves to be responsible, but who cannot be held responsible for the overall conduct of the organization outside his/her specific zone of responsibility? a. Primary qualifying agent b. Unlicensed principal c. Financially responsible officer d. Secondary qualifying agent

d (CM Pg. 2-21)

Which of the following is NOT a requirement of a secondary qualifying agent? a. A person who has responsibility to supervise construction activities b. A person with a contractor's license c. A person who has obtained a permit on a job for which he or she is to be responsible d. A person who has responsibility to supervise the financial aspect of construction activities

d (CM Pg. 2-21)

In determining the limitations of licensure, the scope of the license is defined in F.S. 489. A licensed General Contractor can do all EXCEPT which of the following? a. Install a window unit air conditioner b. Install shingles on a new house of his or her own construction c. Install hurricane shutters d. Install a tile roofing system on a new house of their own construction

d (CM Pg. 2-6)

The State of Florida licenses contractors for protecting the public. Said licensing is required in all situations where individuals or companies hold themselves out to the public to perform contracting services EXCEPT when? a. An individual performing casual contracting work in excess of $1,000 in value b. A homeowner, performing post hurricane repairs on their own property for income purposes c. A utility company performing load management installations including the upgrading of electrical service entrance components such as circuit breakers d. A court appointed trustee undertaking construction repairs as part of a court order

d (CM Pg. 2-6)

Which of the following is NOT correct with respect to F.S. 489? a. A General Contractor, licensed prior to 1973, can install any type of roofing b. A General Contractor, licensed after 1973, can install underground storm drains c. A General Contractor, licensed after 1973, can install shingle roofs on houses newly built by the general contractor d. A General Contractor, licensed after 1973, can install any type of roofing

d (CM Pg. 2-78)

Which of the following statements is TRUE with respect to an independent contractor who has been reclassified by the IRS as a company employee? a. The IRS is prohibited for making this reclassification b. If the employer filed a 1099 for the Independent Contractor, the IRS is prohibited from making this reclassification c. If the independent Contractor is licensed under F.S. 489, the IRS is prohibited from making this reclassification d. The IRS can make this reclassification if the independent contractor does not meet the IRS test to qualify as an independent contractor

d (CM Pg. 2-8 & 2-9)

A company has total assets of $150,000 and total liabilities of $50,000. What is it net worth? a. $150,000 b. $200,000 c. $175,000 d. $100,000

d (CM Pg. 3-12)

Normal categories on an Income Statement include all but which of the following? a. Revenues b. Expenses c. Income d. Depreciation

d (CM Pg. 3-30)

Insurance is a good example of an asset that has been paid but will be expensed over time. What is this called? a. Fixed asset b. Current asset c. Liability d. Prepaid expense

d (CM Pg. 3-32)

TCI Construction has secured a credit line with the following characteristics: - Face Value= $100,000 - Points (discounted)= 3 - Interest rate (annual)= 9% During the first 6 months of loan activity, the company needed $50,000 to fund operations for a 6-month period. If no payments are made on the loan until the final payment and that the final payment includes all outstanding principal, costs, interest, points, and any other fees, what is the final lump sum payment on this loan for the 6 months of use? a. $53,000 b. $56,000 c. $55,000 d. $55,385

d (CM Pg. 3-73)

Which of the following is the difference between the cash received at the time of closing and the principal due at the end of the loan? a. Points b. Yield c. Effective interest rate d. Discount

d (CM Pg. 3-74)

A project in progress has a cost-to-date of $32,800. The estimate to complete the project is $15,400 and the amount billed to date is $43,000. The contract price for the project is $57, 400. Using the percentage of completion method of accounting, how much is billing in excess of earnings for this project? a) less than $3,800 b) between $3,800 and $4,000 c) between $4,000 and $4,200 d) more than 4,200

a (CM Pg 3-79)

Based on the job information, what is the income earned to date? - cost to date= $334,400 - estimated cost to complete= $127,000 - billing to date= $387,000 - total contract amount= $489,000 a) $353,817 b) $332,400 c) $399,700 d) $410,730

a (CM Pg. 3-79)

Based on the following published rates of a bonding company, what would the bond cost for a contract amount of $2,300,000? - first $400,000= $9 per $1,000 - next $1,500,000= $4.50 per $1,000 - next $2,800,000= $2.25 per $1,000 - remainder= $0.90 per $1,000 a) $11,250 b) $20,350 c) $6,300 d) $12,150

a (CM Pg. 4-18)

A single carpenter earns $14.50 per hour and received a production bonus in February of $100 per the week. If he works 50 hours per pay period, what is his gross pay? a) $907.50 b) $797.50 c) $616.50 d) $681.08

a (CM Pg. 5-21)

TCI construction was preparing a bid package based upon the following information: - total labor= $3,500 - total material= $10,200 - subcontractor= $900 Assuming the bid will reflect a 20% flat fee above the job cost, and the total cost of the job based on the above information only, the total contract value of the job above should be what? a) $14,600 b) $17,520 c) $11,200 d) $12,400

b

Based on the following job information, what is the revenue recognized in excess of billings? - cost to date= $136,700 - estimated cost to complete= $105,800 - billing to date= $150,000 - total contract amount= $290,000 a) $16,476 b) $13,473 c) $28,130 d) $14,130

b (BGA Ch. 1, Pg. 24)

Which of the following long-term assets is not a depreciable asset? a) office building b) development land c) front end loader d) construction trailer

b (BGA Ch. 13, Pg. 156)

Most builders allow what percentage discount to certain types of trade accounts only? a) 1 to 2 b) 2 c) 2 to 3 d) 3

b (BGA Ch. 4, Pg. 59)

According to the circular-e, what is the FUTA tax rate for a Florida company claiming full credit for the Florida unemployment compensation tax? a) 0.6% b) 0.8% c) 5.4% d) 6.2%

a (CM Circular-E 3-182)

Which of the following provides the most depreciation in the first year? a) straight line b) 150% declining balance c) 200% declining balance d) completed contracts

c (BGA Ch. 13, Pg. 166, Fig. 13-9)

You are bidding on a 4-story building with an estimated value of $1,973,241, which is estimated to take 16 months to complete. You have applied for a standard surety association class B bond contract and have used the SBA bond guarantee program. Assuming no dollar or contract limitations. According to the CM 2013 edition, what is the total cost of the bond? a) $24,162 b) $29,055 c) $30,217 d) $38,547

d (CM 4-17 & 18)

Which of the following is not exempt from Chapter 489? a) contractors who work on roads and bridges b) an individual performing contracting work for the public c) an employee of the federal government working on a federal project d) an employee who holds himself or his or her employer to be licensed or qualified by a licensee

d (CM Pg. 2-63)

Which of the following statements is false about prepaid expenses? a) organizational expenses are prepaid expenses usually written off over a period of years b) organizational expenses can also be called deferred assets c) prepaid expense accounts are assets in the balance sheet d) prepaid expenses are the same as liabilities

d (CM Pg. 3-32)

Which of the following individuals would NOT have a lien right? a) a professional engineer, hired by the owner, for a subdivision which never gets built b) a not in privity subcontractor who filed a notice to owner within 30 days of starting his or work c) a not in privity subcontractor who filled a notice to owner within 45 days starting his or her work d) a supplier of a supplier

d (CM Pg. 9-17)

Selling expenses usually rise in steps and are related to the volume of the business. Selling expenses are even more controllable than fixed overhead and tend to follow which of the following? a) cost of sales b) general overhead c) net income d) sales volume

d (BGA Ch. 8, Pg. 91)

According to the builder's guide to accounting, the act of setting up an asset in the general ledger is called what? a) debiting b) crediting c) depreciating d) capitalizing

d (BGA Pg. 155)

TCI Construction was evaluating its delinquent accounts and was comparing its bad debts to its credit sales. Over a several months', the following information was available: - Jan, $20 (bad debt), $900 (credit sale) - Feb, $35 (bad debt), $1,850 (credit sale) - March, $55 (bad debt), $3,000 (credit sale) The bad debt ratio, that is the bad debt compared to credit sales, is changing, ranging from 1:45 in Jan. to 1:55 in March. The significance of this event is: a. Credit risk is increasing b. Credit risk is decreasing c. Credit risk is constant, but the bad debt ratio is increasing d. Credit risk is constant, but the bad debt ratio is decreasing

d (BGA Pg. 65)

Which of the following would NOT represent an unfavorable trend? a) Increase in delinquent receivables b) Delinquent receivables remain the same while bad debts increase c) Delinquent receivables and bad debts remain the same while credit sales de relation to total sales d) Delinquent receivables and bad debts decrease as credit sales decrease in relation: sales

d (BGA Pg. 67)

According to the builder's guide to accounting, it may help your collection to offer incentive discounts such as which of the following: a) 1% -20, net 30 b) 2% - 10, net 30 c) 3% on delivery d) 4% on delivery

b (BGA Pg. 59)

A used truck has a book value of $10.400. It is traded in for a new truck with a sticker price of $23,000. The car dealer gives an $8,300 trade in allowance. Based on this information only, what is the new basis for the new truck? a. $33,400 b. $25,100 c. $23,000 d. $31,300

b (BGA pg. 170)

What is the percentage of completion on a job whose cost to date is $157,300 and whose cost to complete is $321,500? a. 3.29% b. .329% c. 32.9% d. 329%

c (CM 3-79)

According to the builder's guide to accounting, in opening the books at the beginning of the new accounting period you must restore the reversal entries for which of the following? a. Accounts payable and accounts receivable b. Accounts payable and revenue received C. Accounts receivable and recognized revenue d. Accounts receivable and direct expenses

a (BGA Pg. 285)

What is the formula for reconciling an individual statement? a) previous balance + charges - credits= current balance b) charges + previous credits= previous balance c) current balance + charges= credits d) charge - credits= current balance

a (BGA Pg. 48)

What is the monthly insurance premium for a $375,000 job which is 50% complete at an insurable rate of $3 per $100 worth of coverage? a) $468.75 b) $5,625 c) $400 d) $4,800

a

A contractor bid a job at $240,000, which was accepted as the low bid. The bid amount included a 20% markup, to cover overhead and profit. According to the AIA provisions, a change order was written to eliminate the swimming pool, which the contractor had originally estimated to cost him $17,000. Retainage in the contract document was to be 10% across the board. What should be the amount of the change order deduction? a) $17,000 b) $20,400 c) $3,400 d) $223,000

a (AIA A201 7.3.8)

According to the AIA documents, if a subcontractor has an employee who is injured on the jobsite, and is in compliance with OSHA at the time, how long shall the subcontractor have to report it to the general contractor? a) 3 days b) 4 days c) 5 days d) 6 days

a (AIA A401 4.4.1)

The following information was used to formulate a draw request. Original contract sum $150,000. 40% complete. Masonry $52,000 scheduled value, 35% complete. Material purchased and store $6,000. Electrical $30,000 scheduled value, 0% complete. Excavation scheduled value, $12,000 and a retainage of 10%. Payment request #1 was for 10% completion of the original contract amount. What is the payment due for draw request #2? a) $40,500 b) $26,100 c) $29,000 d) $13,500

a (AIA math problem)

A construction crew had a labor efficiency rating of 125%. Given a projected standard rate of 500 hours, how long should this crew take? a) 625 hours b) 1,250 hours c) 125 hours d) 500 hours

a (BGA Ch. 15, Pg. 189)

According to the builder's guide to accounting, when should a checking account be balanced? a. Every month b. Every day C. Every week d. Every quarter

a (BGA Pg. 10 & 213)

According to the builder's guide to accounting, you reach the break-even point when: a) your profits fall to zero b) fixed expenses equal variable expenses c) direct costs equal revenue d) indirect costs equal direct expenses

a (BGA Pg. 178)

IF the crew productivity stays the same, the total labor estimate for the new job should be... a) $16,234.75 b) $15,487.75 c) $14,321.50 d) $17,441.75

a (BGA Pg. 190)

TCI construction is considering taking a job which estimates suggest would require 400 labor hours. If the actual time TCI construction would take to perform the job is 600 hours, the relationship between the estimated hours and the true hours would be considered: a) 1.5 to 1 actual to standard b) 1 to 1.5 actual to standard c) 1 to 0.67 actual to standard d) 1 to 0.5 actual to standard

a (BGA Pg. 190)

If the gross profit margin of a company is 27%, the equation to find the direct cost is what? a. Sales minus Gross Profit b. Gross profit minus sales c. Indirect costs minus gross profit d. Gross profit minus fixed costs

a (BGA Pg. 248)

In the percentage of completion method of accounting payments which have been received but have not yet been earned are called what? a. Deferred income b. Unearned retainage c. Unearned accruals d. Unearned payables

a (BGA Pg. 26)

The process of closing the books requires which of the following? a. Making the balances of all the revenue and expense accounts zero b. Carrying forward the balances of all the revenue and expense accounts c. Paying all outstanding short-term receivables d. Paying all outstanding long-term receivables

a (BGA Pg. 284)

Jones is the president of and a stockholder in a construction company that is a closed corporation. Jones owns 280,000 shares of the total 1,000,000 outstanding shares of stock of the corporation. There is only one type of stock issued. The contracting company had a net profit available for distribution of $65,000 for the fiscal year ending December 31, 2017. The net assets of the corporation as of December 31, 2017, amounted to $375,000. What is the max. dividend that Jones can expect to receive form the business for his ownership interest in the corporation for the fiscal year ending December 31, 2017? a) $18,200 b) $32,500 c) $105,000 d) $123,200

a (CM 1-13 &14)

TCII is completing its application for payment G702 form for the first draw on its construction of a 5-story office tower. The practice under which progress billings are accelerated in relation to cost incurred by assigning higher values to be completed in the early stages of the project in the first draw is called what? a. Front end loading b. Mobilization c. Controlling cash flow d. Constructive changing

a (CM 3-108)

TCI construction was borrowing money with the following loan terms: Face value $100,000; points, 3, discounted: Interest rate 10% if TCI agreed to the above term and accepted the fully funded loan for one year, what is the total amount of interest TCI would pay on this loan? a) $10,000 b) $13,000 c) $11,500 d) $13,300

a (CM 3-73)

Under the completed contract method of accounting, if you are 40% complete on a job, how much of the total contract value can you collect? a. 40% b. 0% c. 100% d. 60%

a (CM 3-80)

A company has current assets of $280,000 which includes inventory of $37,500 and $27,500 of accounts receivable. Current liabilities, which include $56,000 in payables and $97,000 in short term notes due, are $375,000. In addition, a recent audit confirmed a long-term asset valuation of $287,000. What is its quick assets ratio? a) .64 to 1, assets to liabilities b) .74 to 1, assets to liabilities c) .64 to 1, liabilities to assets d) .74 to 1, liabilities to assets

a (CM 3-90)

Which of the following individuals would not have a lien right? a) a professional engineer, hired by the architect, to design improvements and the project was never taken to permit b) a not in privity subcontractor who filed a notice to owner within 30 days of starting his work c) an in-privity contractor who filed a lien within 30 days of completing his work d) none of the above

a (CM 9.732, F.S. 713.03 (2)

According to the circular-e, if one spouse is employed by the other spouse, all taxes except which of the following will apply? a) FUTA b) FICA c) withholding d) medicare

a (CM circular-e 3-175)

Any decrease or increase of funds shown in a cash flow statement must equal which of the following? a) a corresponding increase or decrease of net worth b) the corresponding adjustments to the current asset and current liability account c) a corresponding increase or decrease of earned income d) a corresponding change of net income

b (BGA Ch. 21, Pg. 248-249)

Delinquent receivables will drop as a reflection of which of the following? a) your prior credit references b) your collection success is effective c) your account reconciliation success d) your debit success

b (BGA Ch. 4, Pg. 55)

What is the recovery period for office equipment? a) its estimated salvage value b) its estimated years of useful life c) its accumulated appreciation d) it accumulated depreciation

b (BGA Pg. 161 & 167)

According to the builder's guide to accounting, in setting up a job cost ledge, a deferred credit is listed as what? a) asset b) liability c) owner's equity d) retained earnings

b (BGA Pg. 204)

According to the Builder's Guide to Accounting, what is another name for a retained earnings account? a. Unearned income b. Equity c. Earned income d. Retainage

b (BGA Pg. 254)

A legal technique used to help minimize taxes includes which of the following? a) evasion b) shifting c) coveting d) equating

b (BGA Pg. 344)

TCI Construction is preparing its March pay available. The following facts were available: The employee is paid monthly; was married with 3 deductions. The FUTA tax was offset by a 5.4% credit. The employee had not yet reached the max social security limit. Gross pay for the period was $5.000, FICA, Medicare and Federal Withholding Taxes were deducted based on the 2016 Circular-E. in addition to the Benefit package (employee contribution) $247.00. What is the total net check amount to the ee? a. $3,593.00 b. $3.953.00 C. $3,935.00 d. $4,200.50

b (CM 3-171 & 3-209)

Under the Florida unemployment compensation employer handbook, a company can terminate its liability under the system so long as it is not liable for at least? a) 6 months b) entire calendar year c) 2 years d) 2 years and 6 months

b (CM 5-295)

What is the definition of one-hour of required contractor continuing education? a) 60. minutes of classroom instruction b) 50 minutes of classroom instruction c) 60 minutes of approved remote location instruction d) 50 minutes of approved remote location instruction

b (CM Pg. 2-82)

According to the davis bacon wage guidelines, if a worker is entitled to payments but is unable to be found, payments due to the worker are to be held in escrow for a minimum of how many years? a) 2 b) 3 c) 4 d) 5

b (CM Pg. 3-136)

Which of the following is one method of controlling and accurately accounting for payables and receivables? a) closed invoice b) open invoice c) payable d) receivable

b (CM Pg. 3-46)

According to the circular-e, supplemental wages can be subject to what amount of flat withholding tax? a) 20% b) 25% c) 28% d) 32%

b (CM circular e- 3-166)

On January 5, 2019, your company began construction on an office building for the total price of $1,347,500. The AIA 201 document signed required a retainage amount of 5% to be deducted from each draw and released when the architect certified substantial completion. On March 3, you submitted your first payment requisition showing that the total completed and stored to date from the job was $247,500. On May 3, you submitted your second payment request which showed a total completed and stored to date value of $475,000. The total amount you are scheduled to receive from the May 3 requisition is: a) $235,000 b) $123,750 c) $216,125 d) $209,975

c

TCI is reviewing its first year of operations. During this time, TCI invested $4,000 in organizational expenses, including $1,500 in professional fees. These start up fees may be _______ over several years. a) depreciated b) deferred c) amortized d) capitalized

c (BGA Ch. 12, Pg. 144 & Ch. 13 Pg. 169)

You have chosen a 10 year depreciation schedule and the declining balance method for a dump truck with a basis of $43,260. After the end of the first year the accumulated depreciation is $6,489. Which declining balance method was used? a) 100% b) 125% c) 150% d) 200%

c (BGA Ch. 13, Pg. 165)

You purchased a truck with a sticker price of $20,000. This was a trade-in transaction. The book value of the old truck was $5,400; the trade-in value of the old truck was $8,000. According to the builder's guide to accounting, what is the new basis for the new truck? a) $15,400 b) $12,000 c) $17,400 d) $15,600

c (BGA Ch. 13, Pg. 170)

According to the builder's guide to accounting, which of the following would not be needed for a breakeven point calculation? a) sales b) gross profit margin c) depreciation schedule d) fixed expenses

c (BGA Ch. 14, Pg. 179)

ABC construction was estimating the cost of doing a new remodeling job. If the total estimate of the new job is 1,560 labor hours, based on an actual to standard ratio of 1.3-to-1, what are the standard hours the job should take? a) 1,560 b) 1,400 c) 1,200 d) 1,000

c (BGA Ch. 15, Pg. 190)

In the completed contracts method of accounting for income, what is the total earned income for a $2,500,000 job which is 47.5% complete and for which billings have been issued totaling $875,000? a) $875,000 b) $1,625,000 c) $0 d) $2,500,000

c (BGA Ch. 2, Pg. 25)

Why is there a detail column both across the right, and down to the bottom of a cash sales journal? a) totals for taxable sales, sales tax, labor and resale are readily available b) total receipts are equal to the total bank deposits c) arithmetic control d) verify sales and deposit receipts

c (BGA Ch. 3, Pg. 38)

Based on the following facts about TCI construction's debt situation, what is the bad debt year-to-date ratio? - total sales= $450,000 - total credit sales= $340,000 - month's end receivables account= $42,000 - actual bad debt losses= $5,800 a) 1 to 78 b) 1 to 49 c) 1 to 59 d) 49 o 1

c (BGA Ch. 5, Pg. 65)

According to the Builder's Guide to Accounting, approximately what percentage of your direct cost will be for materials? a. 8-10% b. 20-20% c. 50% d. 60%

c (BGA Pg. 115)

The equation to find the comparison ratio is which of the following? a) income x expenses b) expenses divided by income c) income divided by expenses d) expenses x income

c (BGA Pg. 148)

What is the most common modern bookkeeping method? a. Accrual method b. Cash method C. Double entry bookkeeping d. Combined method

c (BGA Pg. 15)

According to the Builder's Guide to Accounting, under percentage of completion accounting all retainages are ______ as income. a. Advanced b. Deferred C. Accrued d. Imposed

c (BGA Pg. 26)

Which of the following is not an advantage of a corporation? a) continuity of existence b) specialized management c) closely regulated d) fringe benefits are tax deductible

c (CM 1-13)

TCI construction needed 45,000 cash to take advantage of an early payment clause in a subcontract. The clause was in accordance with sections 1, 2 and 3 of the AIA A201 document. To take advantage of this opportunity, TGI must borrow the money from a new credit line it has just established at the bank. - face value= $50,000 - interest= 12% - term= 1 year, 6 points discounted Payment: one lump sum payment at the end of the year covering all outstanding amounts due including points and interest. Given the above information, if TCI utilizes the loan for the purposes states, and keeps the borrowed money for the full term of the loan, the final payment of the loan will be: a) $59,360 b) $56,000 c) $53,760 d) $56,760

c (CM 3-73)

Under the workers' compensation law, if an employer intentionally understates or conceals payroll, the employer may be liable for a penalty of how many times the amount of the difference between the premium paid and the amount the employer should have paid? a) 5x b) 7x c) 10x d) 15x

c (CM 6-200)

If a construction job is worth more than $2,500, and there is a construction loan covering the work, which is responsible for posting a copy of the notice of commencement at the job site? a) the contractor b) the lending institution c) the owner d) A or C

c (CM 9-11)

Under OSHA regulations, assuming no adjustments were made, what would be the penalty for a 2nd repeat violation of posting requirements of the OSHA notice? Employer had 200 employees. a) $12,471 b) $1,000 c) $5,000 d) $10,000

c (CM Pg 7-32/33)

What is the maximum payment that can be applied from the recovery fund against a license holder in one year? a) $25,000 b) $25,000 plus damages c) $100,000 d) $100,000 plus damages

c (CM Pg. 2-106)

Which of the following is NOT a requirement of FS 489? a) a residential contractor receiving a 20% good faith deposit from a customer must apply for permits within 30 days of receiving the deposit b) the recovery fund allows for a claim within a 1 year period of time c) the CILB must be informed of a change of address of a licensed contractor within 45 days d) if a firm's primary qualifying agent resigns, all secondary qualifying agents of the firm automatically become the new qualifying agents of the firm, unless otherwise agreed to

c (CM Pg. 2-159)

Which statement is true concerning a qualifying agent who gives 2 weeks' notice of his intention to leave the company; therefore, removing his license from qualifying the company? a) the company has 30 days to find a new qualifier b) the qualifier must give 60 days notice before he can leave c) an executive of the company can take over only if approved and only to finish incomplete contracts d) the business organization has 45 days to notify the board

c (CM Pg. 2-89)

Your company has just signed a standard AIA A201 agreement to build a residential room addition on an existing house. The total contract value is $78,500 for which you have received $10,500. Since this was an advanced deposit in excess of 10%, once the permits are obtained, how long does your company have to actually start the work? a) 30 days b) 60 days c) 90 days d) 120 days

c (CM Pg. 2-90)

Which of the following is true regarding amortization and depreciation? a) amortization is applied to intangible properly b) depreciation is applied to tangible property c) both of the above d) none of the above

c (CM Pg. 3-36)

A contractor borrowed $20,000 from his bank in order to buy computer equipment. The loan was based on 11% simple interest with no other closing involved. During the year of 2016, the contractor paid $5,000 to the bank and during 2017, he paid $4,000. All payments included principal and interest. How much is left in the principal balance after 2 years? a) $15,400 b) $11,000 c) $15,092 d) $13,500

c (CM Pg. 3-73)

What is the percentage of completion on a job in which the cost-to-date is $157,300 and cost-to-complete is $321,500? a) 3.29% b) 0.329% c) 32.9% d) 0.0329%

c (CM Pg. 3-79)

If a lot cost $15,900 and a contractor wishes to sell it for a 20% gross profit, what is the anticipated sales price of the lot? a) $15,900 b) $19,080 c) $20,000 d) $19,875

d

According to the builder's guide to accounting, which record summarizes all business operations? a) balance sheet b) income statement c) chart of accounts d) general ledger

d (BGA Ch. 1, Pg. 16)

Under the MACRS rules, what is the rate at which non-residential real estate depreciates? a) 15 years b) 20 years c) 27.5 years d) 31.5 years

d (BGA Ch. 13, Pg. 167)

Based on the following information, how much in contracts does a contractor need to generate in order to reach the breakeven point for this business? - hard costs are expected to be 65% of sales - fixed expensed are expected to be $72,000 a) $110,770 b) $145,000 c) $72,000 d) $205,000

d (BGA Ch. 14, Pg. 178)