Advanced Virginia Contractor

Question 1

1. For one month, a company bills out $15,000 in completed work and receives $5000 in payments. They pay 5000 to supply houses and post another $5000 in bills to pay the next month, using a cash accounting method and not considering any other revenue or expenses. What is the company’s net income on a month?

            A.  102
            B. 5000.   C. 15,000.00.   D. 29,000.00

Question 2

2. A non-exempt employee has a paid eight-hour holiday during the same week that he works 40 hours. How should the employee be paid?

A. 40 hours straight time.
B. 40 hours straight time and eight hours over time.
C. 48 hours straight time.
D. 32 hours straight time and 16 hours over time

Answer 2

C. 48 hours straight time.

Question 3

3. What is the firm’s return on total assets? The chart has the current assets at 80,000. Fixed assets 112,000. Inventory including assets 12,000. Current liabilities 30,000. Long. Their liabilities 86,000. Net income for the year 57,000. Jews from the public. Option one.

A. 14.3%
B. 97.9%.
C. 27.94

Answer 3

C. 27.94

Question 4

4. Which of the following is a true statement on how a contractor may utilze payroll tax?

A. Can be used for operating expenses until payment is scheduled
B. They can only be used for paying withholding taxes to the government
C. Can temporarily be used for employee benefits
D. They can only be used for an emergency financial situation.

Answer 4

B. They can only be used for paying withholding taxes to the government

Question 5

5. On most large construction projects will typically certifies to the owner that progress payment should be made. Which would be the most appropriate method for establishing this. Disbursements account for a large manufacturing company for a large construction company.

A. Establish a general ledger account with name, number and address.
B. Established a general ledger account with a number in its hundreds.
C. Established a combined journal for disbursement and payroll. Journals.
D. Establish a separate journal for Disbursement and payroll journal.

Answer 5

D. Establish a separate journal for Disbursement and payroll journal.

Question 6

6. A cost-plus contract cost for the contractor received direct cost for labor and material and a mark up of 40% direct cost The contractor also received bonus of 10% of savings if the total cost to the owner is less than 100,000 and a bonus of 500 per day if the project is completed early. Final cost for direct labor and material are 60,000. The project is completed five days early. What is the total amount due to the contractor?

A. 85000
B. 85000 – 90000
C. Less than 95000
D. More than 95000

Answer 6

B. 85000 – 90000

Question 7

7. A company’s workforce consists of employees who are not members of a union. Employer can.

A. Refuse employment to a union member
B. Refused to permit a union solicitation of employees during work hours.
C. Enter into an agreement that requires employees to join a union
D. Terminate any employee who joins a union

Answer 7

B. Refused to permit a union solicitation of employees during work hours.

Question 8

8. What type of business is exempt from registering with the IRS?

A. Two party partnership corporation
B. Corporation less than two years old
C. Sole proprietorship
D. Sole proprietorship with less than ten

Answer 8

C. Sole proprietorship

Question 9

9. OSHA Form 301 supplementary record of occupational injuries and illnesses must be kept by the employer for a minimum of.

Answer 9

5 years

Question 10

10. A non-exempt employee of a contractor, governed by the Fair Labor Standards Act, works 30 hours during the first week of a two-week period. The employee works 50 hours during the second week to make up for the missed time. The employee’s pay rate is $20 per hour. What should the employee’s gross pay be for this two-week period?

A. Less than 1000
B. Between 1000-1050
C. More than 1050
D. Cannot be determined by the info given

Answer 10

C. More than 1050

Question 11

11. (2:24:55) What is the penalty for violating form 941? Ten days late when there is unpaid tax of $500.00

Answer 11

$25.00

Question 12

12. A contractor agrees to a unit price contract to produce product A for $50 per unit, B for 150 per unit, and product C for 375 per unit. The contractor is also to pay 30% For overhead profit. How much should the contractor be paid for producing 27 units of product A., 56 Units of product B and 78 units of products C

A. Less than 40,000
B. Between 40000 – 45000
C. 45000 – 50000
D. 50,700

Answer 12

D. 50,700

Question 13

13. The difference between a bar chart schedule and a critical path method schedule Cpm is that the CPM includes.

A. Scheduled completion date for each activity
B. a more detailed listing of the activities
C. of each activity
D. The relationship of the various activities to each other

Answer 13

D. The relationship of the various activities to each other

Question 14

14. A contractor puts in a claim where, under. A comprehensive standard general liability policy. The policy has no additional coverage. Riders or floaters and a. $1,000 deductible for occurrence. That claim is for a jobsite accident that caused 5000. Extractor puts in a claim under a comprehensive. Standard general liability policy. The policy has no coverage, no additional coverage rider front loaders, and has a 1000 deductible per occurrence. The claim is for a jobsite accident that caused $5,000 of injuries to employees, $1,000 of injuries to a pedestrian, $3,000 damage to the contract equipment. And won $3,000. Loss of. Property of project materials purchased by the contractor. The insurance company is liable for

A. The insurance company is liable for nothing
B. Number two 1000
C. Number three 5000.
D. Number four 11,000

Answer 14

D. Number four 11,000

Question 15

15. What is the penalty rate for federal tax deposits that are 30 days late?

A. no penalty is applied as this is within a grace period
B. 2%
C. 5%
D. 10%

Answer 15

B. 2%

Question 16

16. What is the virginia corporate income tax rate before modification?

Answer 16

A. 6.0%

Question 17

17. What is the advantage to a contractor of purchasing or renting a piece of equipment based on the following information. The equipment would have a useful life of three years. Initial cost 10,000, Rent $0, Monthly Rental purchase $0, Rental $550, Purchase $2000

Question 18

18. Percentage of completion method of accounting

A. Yields more misleading financial information than the completed contract method
B. relies on accurate estimates.
C. does not match revenue with expenses.
D. Should only be used for short term projects

Answer 18

B. relies on accurate estimates.

Question 19

19. A contractor who uses the accrual basis of accounting performs and bills for $10,000 worth of work in June and includes $8,000 worth of expenses in June. The contractor receives $8,000 in June for the work done in June and also receives $3,000 for work done in May. The contractor pays $5,000 of June expenses and also pays $1,000 of May expenses. Disregarding any other income or costs, how much net income will the contractor recognize in June?

A. 2000
B. 3000
C. 4000
D. 5000

Answer 19

C. 4000

Question 20

20. A contractor pays a workers compensation rate of .10 cents per 100 dollars of office employee payroll and 20 cents per 100 dollar of field employee salary
    total employee payroll of
    the year is 25,000 Total field employee payroll is
    125,000 the total workers compensation for the year
    is

A.$250.00.
B. $270.00
c. 300.00

Answer 20

A. 275.00

Question 21

21. A small construction company is currently growing very rapidly. The new contracts are all long-term contracts for larger projects. Which of the following statements is true about the contractor’s accounting system?

A. The completed contract method will be the best method for matching revenues and expenses.
B. Accounting for the long term contracts will be more accurate with the cash method.
C. The percentage of completion method will result in close matching of revenues and expenses
D. The completed contract method will be required in order to establish appropriate general ledger accounts.

Answer 21

C. The percentage of completion method will result in close matching of revenues and expenses

Question 22

22. Lein shall be brought within what length of time from the recording of the Memorandum of lein.

A. 90 days.
B. 120 days
C. Six months.
D. 1 year

Answer 22

C. Six months.

Question 23

23. Which of the following ensures the project owner that the contractor will complete the project in accordance with the terms of the contract?

A. Performance bond
B. Bid bond
C. Complete operations insurance.
D. Payment bond

Answer 23

A. Performance bond

Question 24

24. How many employees must comply with OSHA record keeping and reporting requirements?

A. 2
B. 3
C. 4
B. 11

Answer 24

B. 11

Question 25

An owner makes a progress payment to the contractor one day later than the original called for by the contract. The contract decides to abandon shop without completing it. The contractor, probably

1. one, is legally justified.
2. is committing a material breach of the contract.
3. should have obtained a lien against the property.
4. should have requested a change or change order.

Answer 25

2. Is committing a material breach of the contract.