VA Contractors: VA Advanced (Class A) questions with correct answers 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 What is the total value of current assets for an accrual basis company that has the follo wing? 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; supp liers' 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 What is the total project overhead for a project that lasts 3 months and has the following co sts? 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 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. Usi ng 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 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 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 Which of the following would typically be covered by a contractor's comprehensive general liability insurance pol icy? CORRECT ANSWER Damage to adjoining property from a crane accident 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 6 0 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. The contractor sets the work schedule each day. The ca rpenter 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 What is the name of the process when a facilitator meets with the major participants in a p roject, prior to the commencement of the project, to identify the shared goals of all participants? CORRECT ANSWER Partnering What is the average collection period ratio for a firm that has $365,000 in annual revenues, $6,600 in current receivables, and n et income of $32,000? CORRECT ANSWER 6.6 Who oversees compliance with Material Safety Data Sheets? CORRECT ANSWER OSHA
