Podcast
Questions and Answers
Which of the following should show a profit in order for a financial institution to easily give the company a loan?
Which of the following should show a profit in order for a financial institution to easily give the company a loan?
- Balance sheet
- Assets account
- Income statement (correct)
- Overhead account
What is another term for net income?
What is another term for net income?
- Cash flow
- Debits
- Pretax income
- Net profit for the year (correct)
Fixed assets are defined as:
Fixed assets are defined as:
- Assets which are normally sold within one year
- Assets which are normally kept for more than one year (correct)
- Materials, buildings, and vehicles
- Materials, buildings, and vehicles
Deduction of taxes that reach the ceiling, such as social security tax, occur when:
Deduction of taxes that reach the ceiling, such as social security tax, occur when:
Why is overhead important to a contractor?
Why is overhead important to a contractor?
Which of the following taxes is only paid by the employer?
Which of the following taxes is only paid by the employer?
Employers must report and pay federal unemployment (FUTA) tax to which agency?
Employers must report and pay federal unemployment (FUTA) tax to which agency?
In accounting, fixed costs can be:
In accounting, fixed costs can be:
Which of the following statements regarding overhead is false?
Which of the following statements regarding overhead is false?
What can happen if payroll tax returns are not filed in a timely manner?
What can happen if payroll tax returns are not filed in a timely manner?
Which of the following is not considered a direct cost?
Which of the following is not considered a direct cost?
Which of the following items do accounts receivable include?
Which of the following items do accounts receivable include?
How is the Quick Ratio calculated?
How is the Quick Ratio calculated?
What would a contractor use to determine the budget of a new project?
What would a contractor use to determine the budget of a new project?
FICA taxes are:
FICA taxes are:
What is the difference between fixed cost and overhead cost?
What is the difference between fixed cost and overhead cost?
James has a truck worth $10,000 that is considered to have a useful life of 10 years. He depreciates it 10% the first year for income tax purposes. In the second year, he wants to write off the remaining 9 years. Is this acceptable?
James has a truck worth $10,000 that is considered to have a useful life of 10 years. He depreciates it 10% the first year for income tax purposes. In the second year, he wants to write off the remaining 9 years. Is this acceptable?
The result of subtracting liabilities from assets is known as:
The result of subtracting liabilities from assets is known as:
What is considered a variable cost to a contractor?
What is considered a variable cost to a contractor?
Which method of accounting is recommended for a construction business?
Which method of accounting is recommended for a construction business?
Which of the following has the characteristics of a “Cost Plus Contract”?
Which of the following has the characteristics of a “Cost Plus Contract”?
What is the purpose of the IRS publication, Circular E?
What is the purpose of the IRS publication, Circular E?
The key functions of a business plan are:
The key functions of a business plan are:
Which of the following will allow employers to keep track of products and services purchases?
Which of the following will allow employers to keep track of products and services purchases?
What is considered a fixed cost to a contractor?
What is considered a fixed cost to a contractor?
Direct labor burden includes:
Direct labor burden includes:
Which of the following statements regarding accounting systems is correct?
Which of the following statements regarding accounting systems is correct?
What information should a job filing system contain?
What information should a job filing system contain?
A cash shortage is BEST avoided by:
A cash shortage is BEST avoided by:
The term “net worth” on a corporate balance sheet represents:
The term “net worth” on a corporate balance sheet represents:
When a contractor loses money on a job, the contractor should investigate in the estimating system, trim labor costs or use materials more effectively. Which of the following is the best way to determine these sources of information?
When a contractor loses money on a job, the contractor should investigate in the estimating system, trim labor costs or use materials more effectively. Which of the following is the best way to determine these sources of information?
Why is it important to keep project cost records current and accurate?
Why is it important to keep project cost records current and accurate?
How should a contractor estimate overhead costs?
How should a contractor estimate overhead costs?
To keep accurate accounting records, it is recommended that the contractor:
To keep accurate accounting records, it is recommended that the contractor:
A long- term receivable would be included in the balance sheet under:
A long- term receivable would be included in the balance sheet under:
All revenues minus all of the expenses refers to:
All revenues minus all of the expenses refers to:
Debts which are due within one year are known as _______________.
Debts which are due within one year are known as _______________.
Which of the following costs do NOT contribute to the direct labor burden?
Which of the following costs do NOT contribute to the direct labor burden?
A corporation’s total earnings from its creation minus the total dividends is the definition for:
A corporation’s total earnings from its creation minus the total dividends is the definition for:
Which accounting tool describes a company's cash source, and how that cash was spent over a specified time?
Which accounting tool describes a company's cash source, and how that cash was spent over a specified time?
Bob Jones has been contracting for about 5 years. Bob, who has been managing all phases of this business, is checking his financial statements to determine the condition of his company. What can an intelligent construction manager do to determine his financial position?
Bob Jones has been contracting for about 5 years. Bob, who has been managing all phases of this business, is checking his financial statements to determine the condition of his company. What can an intelligent construction manager do to determine his financial position?
Which of the following depreciation methods allows a contractor to depreciate a significant amount of an item in the first year?
Which of the following depreciation methods allows a contractor to depreciate a significant amount of an item in the first year?
What is a liability?
What is a liability?
If a construction company buys a new car for general use by the sales staff, to which of the following accounts would the depreciation of the car be charged?
If a construction company buys a new car for general use by the sales staff, to which of the following accounts would the depreciation of the car be charged?
The ability of a company to pay its current debt is called:
The ability of a company to pay its current debt is called:
Which financial statement gives a picture of the business over a period of time?
Which financial statement gives a picture of the business over a period of time?
Contracts, sales receipts, and disbursements should be kept at LEAST:
Contracts, sales receipts, and disbursements should be kept at LEAST:
A company that is able to make payroll and pay for material costs has:
A company that is able to make payroll and pay for material costs has:
Overhead percentage is greater for:
Overhead percentage is greater for:
Which of the following is the best method of bookkeeping for a construction company?
Which of the following is the best method of bookkeeping for a construction company?
Overhead includes ___________.
Overhead includes ___________.
What is the Cash Basis Method of Accounting?
What is the Cash Basis Method of Accounting?
With what agency is a DE34 form filed?
With what agency is a DE34 form filed?
The two types of external financing available to a business are:
The two types of external financing available to a business are:
A business must use an electronic funds transfer (EFT) to make all federal tax deposits. Generally, an EFT is made using the Electronic Federal Tax Payment System (EFTPS). Which of the following is FALSE about EFTPS?
A business must use an electronic funds transfer (EFT) to make all federal tax deposits. Generally, an EFT is made using the Electronic Federal Tax Payment System (EFTPS). Which of the following is FALSE about EFTPS?
How often should an employer file a federal payroll tax return Form 941?
How often should an employer file a federal payroll tax return Form 941?
The SBA prefers to provide funds to a business by:
The SBA prefers to provide funds to a business by:
Which of the following may appear under accounts receivable?
Which of the following may appear under accounts receivable?
Where do the funds generally come from to pay for current liabilities?
Where do the funds generally come from to pay for current liabilities?
If “2%, 10; net 30” or “2% prox 10, net 30,” appear on a supplier’s billing statement, what does it mean?
If “2%, 10; net 30” or “2% prox 10, net 30,” appear on a supplier’s billing statement, what does it mean?
What is Long-Term Liability?
What is Long-Term Liability?
What does the ceiling limit mean in tax?
What does the ceiling limit mean in tax?
Which of the following statements best describes the difference between the balance sheet and the income statement?
Which of the following statements best describes the difference between the balance sheet and the income statement?
Which of the following statements is correct regarding the quick ratio?
Which of the following statements is correct regarding the quick ratio?
Who has jurisdiction over the state sales and use tax?
Who has jurisdiction over the state sales and use tax?
What do liquidity ratios tell you?
What do liquidity ratios tell you?
A fixed cost is:
A fixed cost is:
Which of the following items is listed as a current asset on a balance sheet?
Which of the following items is listed as a current asset on a balance sheet?
What is the advantage of funding a business with debt and not with equity?
What is the advantage of funding a business with debt and not with equity?
______ refers to the total of financial resources available to the owner of the business.
______ refers to the total of financial resources available to the owner of the business.
If John, a contractor, decides to take out a loan to pay for a truck, he should obtain a:
If John, a contractor, decides to take out a loan to pay for a truck, he should obtain a:
Why is net worth important on the balance sheet?
Why is net worth important on the balance sheet?
If the ratio of net sales to net worth is low, it means:
If the ratio of net sales to net worth is low, it means:
If a contractor wanted to show funding to a financial institution, what would be the LEAST applicable thing to show?
If a contractor wanted to show funding to a financial institution, what would be the LEAST applicable thing to show?
When should a contractor maintain large inventories?
When should a contractor maintain large inventories?
How is a line of credit with suppliers established?
How is a line of credit with suppliers established?
Assets that are purchased for use in operations but are not intended to be resold are called:
Assets that are purchased for use in operations but are not intended to be resold are called:
Another term for “stockholders equity’’ on a balance sheet is:
Another term for “stockholders equity’’ on a balance sheet is:
The “bottom line’’ of an income statement is:
The “bottom line’’ of an income statement is:
How often does an employer have to file FUTA?
How often does an employer have to file FUTA?
When collecting sales tax from a customer for goods, to which agency is the sales tax reported and paid?
When collecting sales tax from a customer for goods, to which agency is the sales tax reported and paid?
Working capital is defined as:
Working capital is defined as:
An employer is required to file quarterly state tax returns with the:
An employer is required to file quarterly state tax returns with the:
Where would depreciation appear on the Balance Sheet?
Where would depreciation appear on the Balance Sheet?
Which of the following is true about overhead?
Which of the following is true about overhead?
Which agency can allow a company to switch their accounting method?
Which agency can allow a company to switch their accounting method?
Direct labor is comprised of:
Direct labor is comprised of:
Which of the following is NOT part of the DE 9C form?
Which of the following is NOT part of the DE 9C form?
What are the fixed costs in the construction business?
What are the fixed costs in the construction business?
Although employers report social security (FICA) tax to the IRS, what are the appropriate shares paid by the employee and employer?
Although employers report social security (FICA) tax to the IRS, what are the appropriate shares paid by the employee and employer?
Liabilities are broken down into two major categories:
Liabilities are broken down into two major categories:
Which of the following is considered a direct cost?
Which of the following is considered a direct cost?
What is the purpose of retaining records of all project activities?
What is the purpose of retaining records of all project activities?
Which of the following is an example of an indirect cost?
Which of the following is an example of an indirect cost?
Which of the following is considered a fixed cost?
Which of the following is considered a fixed cost?
Direct labor burden refers to:
Direct labor burden refers to:
Sales tax is collected from customers and paid to the:
Sales tax is collected from customers and paid to the:
An income and expense statement can also be called a:
An income and expense statement can also be called a:
State unemployment insurance taxes are:
State unemployment insurance taxes are:
Contractors who work in sales and use tax districts in California and purchase fixtures or materials are subject to what percentage of tax?
Contractors who work in sales and use tax districts in California and purchase fixtures or materials are subject to what percentage of tax?
____________ fall under direct cost for bidding purposes.
____________ fall under direct cost for bidding purposes.
Which of the following depreciation methods allows a contractor to depreciate the same amount every year?
Which of the following depreciation methods allows a contractor to depreciate the same amount every year?
Depreciation is:
Depreciation is:
How often must an employer report and pay social security (FICA) taxes?
How often must an employer report and pay social security (FICA) taxes?
Banks usually limit long-term borrowing for businesses to _____ of the capitalization (debt ratio).
Banks usually limit long-term borrowing for businesses to _____ of the capitalization (debt ratio).
FICA tax return for the second calendar quarter must be filed with the IRS by:
FICA tax return for the second calendar quarter must be filed with the IRS by:
Which of the following represents a current asset?
Which of the following represents a current asset?
Which of the following shows how far past-due each customer’s payment is?
Which of the following shows how far past-due each customer’s payment is?
The ABC Construction Company has found itself in bad times and must convert its assets into cash to pay some outstanding debt. The ability to do this is called:
The ABC Construction Company has found itself in bad times and must convert its assets into cash to pay some outstanding debt. The ability to do this is called:
If an $8.30 discrepancy emerges between debits and credits, what should the bookkeeper do?
If an $8.30 discrepancy emerges between debits and credits, what should the bookkeeper do?
What is the basic balance sheet equation?
What is the basic balance sheet equation?
A company’s profits are calculated by:
A company’s profits are calculated by:
Bob Hunter, a contractor, wants to bid on several large jobs. The only significant debt Bob has is a mortgage on his shop building. After discussing loans with several banks, Bob decides to try equity funding as a source of financing. Equity funds are:
Bob Hunter, a contractor, wants to bid on several large jobs. The only significant debt Bob has is a mortgage on his shop building. After discussing loans with several banks, Bob decides to try equity funding as a source of financing. Equity funds are:
How often should income statements be prepared?
How often should income statements be prepared?
Net working capital is equal to:
Net working capital is equal to:
A loan from a bank to buy supplies is sought, which can be paid within 90 days. Approval of the loan depends on:
A loan from a bank to buy supplies is sought, which can be paid within 90 days. Approval of the loan depends on:
