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CHAPTER 3 - AIC EXAM 2026
ACTUAL QUESTIONS WITH VERIFIED
ANSWERS.
____ are all costs directly attributable to performance of all
work, such as project labor, material, subcontract, and
equipment cost - correct answer-direct cost
___ is revenue minus direct cost - correct answer-gross profit
____ is all costs not directly attributable to performance of
work, such as overhead, general, and administrative costs -
correct answer-indirect costs
_____ is gross profit minus indirect cost - correct answer-net
profit
the _____ indicates cash generated and used during a specific
period of time and a firm's liquidity - correct answer-cash flow
statement
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the ___ ratio is current assets / current liabilities - correct
answer-current
the ___ ratio is (cash and equivalents + accounts receivable) /
current liabilities - correct answer-quick
the ___ ratio is 365 / - correct answer-
____ measures available funds for investment operations to
generate future revenue and profit. it is calculated by doing
current assets - current liabilities - correct answer-working
capital
_____ is the ratio that measures the amount in which the
owner's equity is invested in fixed assets and is found by doing
net fixed assets / tangible net worth - correct answer-
fixed/worth
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_____ is the ratio of capital contribution by creditors and the
capital contribution by the owners. it is found by doing total
liabilities / tangible net worth. - correct answer-debt/worth
____ means the effectiveness and rate of return on invested
capital and is found by doing net profit before taxes / tangible
net worth x 100 - correct answer-return on investment (ROI)
____ measures the effectiveness of asset utilization and is
found by doing (net profit before taxes) / (total assets) x 100 -
correct answer-return on assets (ROA)
_____ are generally defined as the collecting o data, organizing
the data so it can be analyzed, and analyzing the data to
provide useful information and then using that information to
benefit the project. - correct answer-project controls
a ___ is a chart used to show relative frequency of an
observation. - correct answer-histogram
a ___ uses rectangular bars over a category to show the
magnitude or frequency of grouped data, and these charts are
CHAPTER 3 - AIC EXAM 2026
ACTUAL QUESTIONS WITH VERIFIED
ANSWERS.
____ are all costs directly attributable to performance of all
work, such as project labor, material, subcontract, and
equipment cost - correct answer-direct cost
___ is revenue minus direct cost - correct answer-gross profit
____ is all costs not directly attributable to performance of
work, such as overhead, general, and administrative costs -
correct answer-indirect costs
_____ is gross profit minus indirect cost - correct answer-net
profit
the _____ indicates cash generated and used during a specific
period of time and a firm's liquidity - correct answer-cash flow
statement
, Page | 2
the ___ ratio is current assets / current liabilities - correct
answer-current
the ___ ratio is (cash and equivalents + accounts receivable) /
current liabilities - correct answer-quick
the ___ ratio is 365 / - correct answer-
____ measures available funds for investment operations to
generate future revenue and profit. it is calculated by doing
current assets - current liabilities - correct answer-working
capital
_____ is the ratio that measures the amount in which the
owner's equity is invested in fixed assets and is found by doing
net fixed assets / tangible net worth - correct answer-
fixed/worth
, Page | 3
_____ is the ratio of capital contribution by creditors and the
capital contribution by the owners. it is found by doing total
liabilities / tangible net worth. - correct answer-debt/worth
____ means the effectiveness and rate of return on invested
capital and is found by doing net profit before taxes / tangible
net worth x 100 - correct answer-return on investment (ROI)
____ measures the effectiveness of asset utilization and is
found by doing (net profit before taxes) / (total assets) x 100 -
correct answer-return on assets (ROA)
_____ are generally defined as the collecting o data, organizing
the data so it can be analyzed, and analyzing the data to
provide useful information and then using that information to
benefit the project. - correct answer-project controls
a ___ is a chart used to show relative frequency of an
observation. - correct answer-histogram
a ___ uses rectangular bars over a category to show the
magnitude or frequency of grouped data, and these charts are
