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VA CONTRACTORS: VA A DVANCED
(CLASS A) QUESTIONS WITH
CORRECT ANSWERS
Question : A lump sum contract on a project has a total
contract price of $160,000. Retainage has been held back at 10%. The contractor has received progress payments for 75% of the project. The contractor submits a request for final payment for the new completed project. The final payment amount should be for...
Correct answer: More than $50,000
Question : What is the total value of current assets for an
accrual basis company that has the following? Checking account cash balance is $4,800; materials inventory for work- in-progress is $4,200; a pick-up truck that cost $12,460- paid for with $2,460 in cash and a note for $10,000- and is used 100% in the business; accounts receivable is $5,700; suppliers' accounts payable is $6,300; other accounts payable is $2,200; and quarterly income tax payment due is $1,180...
Correct answer: Between $12,000 and $16,000
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Question : What is the total project overhead for a project that
lasts 3 months and has the following costs? Labor is $4,000; materials are $9,500; equipment rentals are $1,200; superintendent's annual salary is $36,000; office rent is $800 per month; and office utilities are $375 per month.
Correct answer: Less than $12,000
Question : For 1 month a company bills out $38,000 in
completed work, and receives $22,000 in payments plus $8,000 from the previous month's billings. They pay their total bill of $26,000 to supply houses for this month's purchases, and another $5,000 to supply houses for last month's purchases. Using a cash accounting method and NOT considering any other revenue or expenses, what is the company's net income for the month?
Correct answer: Loss of $1,000
Question : The owner requests for change which will cost the
contractor $15,000 in labor and materials and $2,250 in overhead costs. With the change, the contractor would be relieved of $18,000 in labor and materials costs, and $2,400 in overhead costs from the original contract. The original bid
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included profit of 20% of all costs. The contractor wants to make a profit of 20% of all costs on the changes. The adjusted contract price for the change order should be...
Correct answer: A decrease of $3,780
Question : Which of the following would typically be covered
by a contractor's comprehensive general liability insurance policy?
Correct answer: Damage to adjoining property from a crane
accident
Question : What is the total gross compensation and
employment status for a carpenter, given the following information? A contractor hires a carpenter to do the finish work for a 10-home project. The carpenter is to be paid $16 per hour. The contractor provides all materials and equipment, such as a table saw. The carpenter provides all of his own hand tools. The contractor and the carpenter agree that all of the homes are to be completed within 60 8-hour working days, without overtime. The contractor provides the carpenter with a schedule of the order in which homes are to be worked on. The contractor provides a helper to assist the carpenter.
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The contractor sets the work schedule each day. The carpenter spends 600 hours to complete this project, including 120 hours of overtime.
Correct answer: The carpenter is an employee and is owed
$10,560 for the project
Question : In the previous year, a company had revenues of
$500,000 project overhead of $40,000 and company overhead of $75,000. The company expects the percentage for project and company overhead to remain the same for the current year. The company desires to make a 10% profit on a project it is bidding. The project would have $80,000 in direct costs.What should the bid price be?
Correct answer: Between $110,000 and $120,000
Question : An insurer offers the contractor a 20% per year
reduction in premiums if the contractor has a defied safety program in place. The insurer's standard rates are $8 per $1,000 of coverage. The contractor has $300,000 in coverage.How much in premiums will the contractor save a 3-year period by having a defined safety program in place?