AFSB 152 FINAL EXAM 2026 ACTUAL QUESTIONS AND
SOLUTIONS RATED A+
✔✔When estimating the costs for labor, in addition to the capabilities of the available
labor force, the estimator must be familiar with
- Union and local regulations that might affect what work a particular subcontractor can
perform
- The subcontractor's hours of operation and overtime guidelines
- Any union labor limitations for specialized laborers who work on private construction
projects
- The profit margins that are customary for similar types of jobs in the market - ✔✔Union
and local regulations that might affect what work a particular subcontractor can perform
✔✔Which one of these statements most accurately describes the laws and regulations
with which architects must comply?
- A. Architects must comply with all federal, state, and local laws, regulations,
ordinances, requirements, and codes that apply to construction projects
- Architects must comply with all federal, state, and local laws, regulations, ordinances,
requirements, and codes, as well as with regulations and licensing requirements of the
architectural profession
- Architects must comply with regulations and licensing requirements of the architectural
profession, along with regulations and licensing requirements for the construction firms
- Architects must comply with regulations and licensing requirements of the architectural
profession, which takes precedence over all other regulations and ordinances -
✔✔Architects must comply with all federal, state, and local laws, regulations,
ordinances, requirements, and codes, as well as with regulations and licensing
requirements of the architectural profession
✔✔When contract documents specifically request two or more alternative quotes (such
as one with and one without some feature), the contractor
- Should investigate the advantages and disadvantages of the alternatives and include
them in separate bids for each alternative
- Can choose to bid on only one of the quotes but must explain why only one quote is
furnished
- Should include any qualifying conditions for the alternatives, which could ensure the
contractor's responsiveness
- Must clearly furnish each of the requested quotes, or the bid might be judged
nonresponsive - ✔✔Must clearly furnish each of the requested quotes, or the bid might
be judged nonresponsive
✔✔One of the purposes of bid bonds is
- To assure the owner of completion of the project in the least amount of time possible
- To save the owner the expense of hiring a second contractor to complete the contract
- To eliminate unqualified or irresponsible contractors from competitive bidding
,- To ensure that the contractor can get the materials needed to complete the project at
the lowest price possible - ✔✔To eliminate unqualified or irresponsible contractors from
competitive bidding
✔✔The kind of mistake that was made determines whether contractors can obtain relief
for the mistake. Relief for mistakes is usually granted in cases for which a mistake
involves
- Errors in interpretation of the drawings or specifications and errors in judgment
- Clerical errors and errors in interpretation of the drawings or specifications
- Errors in judgment, transposition of amounts from worksheets, and computation errors
- Clerical errors, transposition of amounts from worksheets, and computation errors -
✔✔Clerical errors, transposition of amounts from worksheets, and computation errors
✔✔Which one of the following statements regarding bid-amount disclosure is accurate?
- All public and private project bids are always disclosed publicly
- Private project bids are never disclosed to the public
- Public project bids and private project bids (at the owners' discretion) are disclosed
publicly
- Only private project bids are always disclosed to the public - ✔✔Public project bids
and private project bids (at the owners' discretion) are disclosed publicly
✔✔When estimating costs of a project, the estimator
- Can set the price for the subcontractors' contracts, including detailed breakdowns of all
costs
- Should include the costs of performance and payment bonds in the bids of every
subcontractor that the estimator/contractor might consider for the project
- May not be able to obtain a contract from the desired contractor, because the
subcontractor chooses general contractors having practices that meet their needs
- Can expect to get timely bids from subcontractors, which will allow time for negotiation
to reduce the subcontractor's price - ✔✔May not be able to obtain a contract from the
desired contractor, because the subcontractor chooses general contractors having
practices that meet their needs
✔✔The Westville Dam will be a federal public works project. Bid bonds used in federal
projects such as this one have
- "Little Miller Act" bond forms
- Manuscripted bond forms supplied by the obligee
- Standard Miller Act bond forms
- Standard American Institute of Architects (AIA) bond forms - ✔✔Standard Miller Act
bond forms
✔✔Joel, Kurt, and Ramon have been friends since high school and have wanted to
engage in some business efforts together. As they are now partners in a joint venture,
which one of the following best describes this arrangement?
- Each partner is jointly and severally liable for completing the entire project
, - Partners have limited liability for the venture's debts and obligations
- Each partner is liable for its percentage of participation toward completing the project
- Each partner has an equal share of liability for the entire project - ✔✔Each partner is
jointly and severally liable for completing the entire project
✔✔Jack is the owner of Jack's Contracting and has just met with his financial team and
new bonding company to discuss his company's financial reporting. Which one of the
following is a disadvantage of the percentage-of-completion method of financial
reporting?
- It is not favored by the reader of a financial statement
- It provides a different final gross profit than do other methods
- It is the most easily manipulated of all the methods to produce a certain outcome
- It is not the easiest and most flexible accounting method - ✔✔It is not the easiest and
most flexible accounting method
✔✔The management team at Kennon Construction has supplied a presentation of
information in financial-statement format to its surety company. This type of information
is known as a(n)
- Audit
- Compilation
- Preparation
- Review - ✔✔Compilation
✔✔Interim financial statements should
- Always be prepared by a certified public accountant
- Be submitted to the Internal Revenue Service
- Be prepared monthly
- Follow the format of the annual statement - ✔✔Follow the format of the annual
statement
✔✔Holley Surety's new analyst Walter is familiarizing himself with some of the financial
statements and reports from contractors he will soon be reviewing on a more regular
basis. Which one of the following will Walter find that measures the contractor's financial
results over a period of time?
- Independent auditors' report
- Income statement
- Statement of changes in stockholders' equity
- Statement of cash flows - ✔✔Income statement
✔✔Under the cost-to-cost method, if costs incurred to date are $600,000 and estimated
total cost is $1 million, what is the percentage of completion of the contract?
- 30%
- 50%
- 60%
- 100% - ✔✔60%
SOLUTIONS RATED A+
✔✔When estimating the costs for labor, in addition to the capabilities of the available
labor force, the estimator must be familiar with
- Union and local regulations that might affect what work a particular subcontractor can
perform
- The subcontractor's hours of operation and overtime guidelines
- Any union labor limitations for specialized laborers who work on private construction
projects
- The profit margins that are customary for similar types of jobs in the market - ✔✔Union
and local regulations that might affect what work a particular subcontractor can perform
✔✔Which one of these statements most accurately describes the laws and regulations
with which architects must comply?
- A. Architects must comply with all federal, state, and local laws, regulations,
ordinances, requirements, and codes that apply to construction projects
- Architects must comply with all federal, state, and local laws, regulations, ordinances,
requirements, and codes, as well as with regulations and licensing requirements of the
architectural profession
- Architects must comply with regulations and licensing requirements of the architectural
profession, along with regulations and licensing requirements for the construction firms
- Architects must comply with regulations and licensing requirements of the architectural
profession, which takes precedence over all other regulations and ordinances -
✔✔Architects must comply with all federal, state, and local laws, regulations,
ordinances, requirements, and codes, as well as with regulations and licensing
requirements of the architectural profession
✔✔When contract documents specifically request two or more alternative quotes (such
as one with and one without some feature), the contractor
- Should investigate the advantages and disadvantages of the alternatives and include
them in separate bids for each alternative
- Can choose to bid on only one of the quotes but must explain why only one quote is
furnished
- Should include any qualifying conditions for the alternatives, which could ensure the
contractor's responsiveness
- Must clearly furnish each of the requested quotes, or the bid might be judged
nonresponsive - ✔✔Must clearly furnish each of the requested quotes, or the bid might
be judged nonresponsive
✔✔One of the purposes of bid bonds is
- To assure the owner of completion of the project in the least amount of time possible
- To save the owner the expense of hiring a second contractor to complete the contract
- To eliminate unqualified or irresponsible contractors from competitive bidding
,- To ensure that the contractor can get the materials needed to complete the project at
the lowest price possible - ✔✔To eliminate unqualified or irresponsible contractors from
competitive bidding
✔✔The kind of mistake that was made determines whether contractors can obtain relief
for the mistake. Relief for mistakes is usually granted in cases for which a mistake
involves
- Errors in interpretation of the drawings or specifications and errors in judgment
- Clerical errors and errors in interpretation of the drawings or specifications
- Errors in judgment, transposition of amounts from worksheets, and computation errors
- Clerical errors, transposition of amounts from worksheets, and computation errors -
✔✔Clerical errors, transposition of amounts from worksheets, and computation errors
✔✔Which one of the following statements regarding bid-amount disclosure is accurate?
- All public and private project bids are always disclosed publicly
- Private project bids are never disclosed to the public
- Public project bids and private project bids (at the owners' discretion) are disclosed
publicly
- Only private project bids are always disclosed to the public - ✔✔Public project bids
and private project bids (at the owners' discretion) are disclosed publicly
✔✔When estimating costs of a project, the estimator
- Can set the price for the subcontractors' contracts, including detailed breakdowns of all
costs
- Should include the costs of performance and payment bonds in the bids of every
subcontractor that the estimator/contractor might consider for the project
- May not be able to obtain a contract from the desired contractor, because the
subcontractor chooses general contractors having practices that meet their needs
- Can expect to get timely bids from subcontractors, which will allow time for negotiation
to reduce the subcontractor's price - ✔✔May not be able to obtain a contract from the
desired contractor, because the subcontractor chooses general contractors having
practices that meet their needs
✔✔The Westville Dam will be a federal public works project. Bid bonds used in federal
projects such as this one have
- "Little Miller Act" bond forms
- Manuscripted bond forms supplied by the obligee
- Standard Miller Act bond forms
- Standard American Institute of Architects (AIA) bond forms - ✔✔Standard Miller Act
bond forms
✔✔Joel, Kurt, and Ramon have been friends since high school and have wanted to
engage in some business efforts together. As they are now partners in a joint venture,
which one of the following best describes this arrangement?
- Each partner is jointly and severally liable for completing the entire project
, - Partners have limited liability for the venture's debts and obligations
- Each partner is liable for its percentage of participation toward completing the project
- Each partner has an equal share of liability for the entire project - ✔✔Each partner is
jointly and severally liable for completing the entire project
✔✔Jack is the owner of Jack's Contracting and has just met with his financial team and
new bonding company to discuss his company's financial reporting. Which one of the
following is a disadvantage of the percentage-of-completion method of financial
reporting?
- It is not favored by the reader of a financial statement
- It provides a different final gross profit than do other methods
- It is the most easily manipulated of all the methods to produce a certain outcome
- It is not the easiest and most flexible accounting method - ✔✔It is not the easiest and
most flexible accounting method
✔✔The management team at Kennon Construction has supplied a presentation of
information in financial-statement format to its surety company. This type of information
is known as a(n)
- Audit
- Compilation
- Preparation
- Review - ✔✔Compilation
✔✔Interim financial statements should
- Always be prepared by a certified public accountant
- Be submitted to the Internal Revenue Service
- Be prepared monthly
- Follow the format of the annual statement - ✔✔Follow the format of the annual
statement
✔✔Holley Surety's new analyst Walter is familiarizing himself with some of the financial
statements and reports from contractors he will soon be reviewing on a more regular
basis. Which one of the following will Walter find that measures the contractor's financial
results over a period of time?
- Independent auditors' report
- Income statement
- Statement of changes in stockholders' equity
- Statement of cash flows - ✔✔Income statement
✔✔Under the cost-to-cost method, if costs incurred to date are $600,000 and estimated
total cost is $1 million, what is the percentage of completion of the contract?
- 30%
- 50%
- 60%
- 100% - ✔✔60%
