CCIFP Study Test Questions with
Complete Solutions
Percentage of Completion method: - ANSWERS-recognizes income as work on a contract
progresses
Completed Contract method: - ANSWERS-Recognizes income only when the contract is
completed
Units of delivery method: - ANSWERS-Recognizes as revenue the contract price of units of a
basic production product delivered during a period and as the cost of earned revenue the costs
allocable to the delivered units.
The units of delivery is a modification of the: - ANSWERS-percentage-of-completion method of
accounting for contracts
The use of either of the two generally accepted methods of accounting involves, to a greater or
lesser extent, three key areas of estimates and uncertainties - ANSWERS-The extent of progress
towards completion, contract revenues and contract costs
Percentage of method is considered preferable when: - ANSWERS-Estimates of costs to
complete and extent of progress toward completion of long term contracts are reasonably
dependable
Percentage of Completion and The completed contracts method - ANSWERS-Both of the two
generally accepted methods of accounting for contracts
, Assets constructed and intended for sale or lease - ANSWERS-Qualifying assets that warrant
capitalization of interest
Statement of Position, Scope of: - ANSWERS-applies to accounting for performance contracts for
which specifications are provided by the customer for the construction of facilities or the
production of goods or the provisions of related services that are reported in financial
statements prepared in comformity with generally accepted accounting principles.
Performance Bond - ANSWERS-A guarantee that the contractor will perform the terms and
conditions of the contract and that the project will be built according to the plans and
specifications.
In which phase of the contract life cycle does a contractor have the opportunity to influence the
contract terms and conditions - ANSWERS-Contract Award
The Primary goal of an incentive compensation plan is to - ANSWERS-Motivate group
performance to achieve the company's identified goals
What is GAAP - ANSWERS-Generally Accepted Accounting Principles
Why Adhere to GAAP - ANSWERS-Accountants adhere to GAAP for consistency, fairness,
honesty and accuracy in measuring and disclosing financial information
What is financial reporting- 4 components - ANSWERS-Financial reporting includes the
following: the external financial statements (balance sheet, income statement, statement of
cash flows and statement of stockholders
What is absorption costing - ANSWERS-Absorption costing means that all of the manufacturing
costs are absorbed by the units produce. Absorption costing is often contrasted with variable
costing or direct costing
Complete Solutions
Percentage of Completion method: - ANSWERS-recognizes income as work on a contract
progresses
Completed Contract method: - ANSWERS-Recognizes income only when the contract is
completed
Units of delivery method: - ANSWERS-Recognizes as revenue the contract price of units of a
basic production product delivered during a period and as the cost of earned revenue the costs
allocable to the delivered units.
The units of delivery is a modification of the: - ANSWERS-percentage-of-completion method of
accounting for contracts
The use of either of the two generally accepted methods of accounting involves, to a greater or
lesser extent, three key areas of estimates and uncertainties - ANSWERS-The extent of progress
towards completion, contract revenues and contract costs
Percentage of method is considered preferable when: - ANSWERS-Estimates of costs to
complete and extent of progress toward completion of long term contracts are reasonably
dependable
Percentage of Completion and The completed contracts method - ANSWERS-Both of the two
generally accepted methods of accounting for contracts
, Assets constructed and intended for sale or lease - ANSWERS-Qualifying assets that warrant
capitalization of interest
Statement of Position, Scope of: - ANSWERS-applies to accounting for performance contracts for
which specifications are provided by the customer for the construction of facilities or the
production of goods or the provisions of related services that are reported in financial
statements prepared in comformity with generally accepted accounting principles.
Performance Bond - ANSWERS-A guarantee that the contractor will perform the terms and
conditions of the contract and that the project will be built according to the plans and
specifications.
In which phase of the contract life cycle does a contractor have the opportunity to influence the
contract terms and conditions - ANSWERS-Contract Award
The Primary goal of an incentive compensation plan is to - ANSWERS-Motivate group
performance to achieve the company's identified goals
What is GAAP - ANSWERS-Generally Accepted Accounting Principles
Why Adhere to GAAP - ANSWERS-Accountants adhere to GAAP for consistency, fairness,
honesty and accuracy in measuring and disclosing financial information
What is financial reporting- 4 components - ANSWERS-Financial reporting includes the
following: the external financial statements (balance sheet, income statement, statement of
cash flows and statement of stockholders
What is absorption costing - ANSWERS-Absorption costing means that all of the manufacturing
costs are absorbed by the units produce. Absorption costing is often contrasted with variable
costing or direct costing
