VA Contractors Advanced Class A Exam 2026/2027 | Verified Questions & Correct Answers With Rationales– Graded A+ | Comprehensive Virginia Contractor License Exam Prep

VA Contractors Advanced Class A Exam 2026/2027 |
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x Verified Questions & Correct Answers With Rationales –
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x Graded A+ | Comprehensive Virginia Contractor License
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x Exam Prep x




THIS EXAM CONTAINS: x x




• xx x Verified Virginia Advanced Class A Contractor exam questions
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• xx x Correct answers with detailed explanations
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• xx x Licensing regulations and industry best practices
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• xx x Exam-style multiple-choice practice questions
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• xx x High-yield study notes and review materials
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• xx x Updated 2026/2027 content x x x




• xx x A+ graded exam preparation resource
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,x Construction Financial Management & Contracting x x x x




Question 1 x




A lump sum contract has a total price of $160,000. Retainage has been held
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back at 10%. The contractor has received progress payments for 75% of the
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project. Upon final completion, the final payment amount should be:
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a) $40,000
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b) $48,000
x




c) $56,000
x




d) $64,000
x




Correct Answer: c) $56,000 x x x




Rationale: Total contract price is $160,000. The contractor has been paid for
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75% of the work, meaning 25% remains billed ($160,000 * 0.25 = $40,000).
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However, the 10% retainage on all progress payments has been withheld.
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The total retainage is $160,000 * 0.10 = $16,000. Therefore, the final payment
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is the remaining 25% ($40,000) plus the accumulated retainage ($16,000) =
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$56,000. This is more than $50,000.
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Question 2 x




What is the total value of current assets for an accrual-basis company with
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the following? Checking: $4,800; Materials inventory (WIP): $4,200; Pick-up
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truck (cost $12,460, paid $2,460 cash + $10,000 note): used 100% in business;
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Accounts receivable: $5,700; Accounts payable (suppliers): $6,300; Other
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payables: $2,200; Quarterly income tax due: $1,180.
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a) Less than $10,000
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b) Between $10,000 and $12,000
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,c) Between $12,000 and $16,000
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d) More than $16,000
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Correct Answer: c) Between $12,000 and $16,000
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Rationale: Current assets are assets expected to be converted to cash within
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one year. From the list: Checking ($4,800) + Materials inventory ($4,200) +
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Accounts receivable ($5,700) = $14,700. The pick-up truck is a fixed (long-
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term) asset, not a current asset. Accounts payable, other payables, and tax
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due are liabilities, not assets. The calculated total of $14,700 falls between
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$12,000 and $16,000.
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Question 3 x




What is the total project overhead for a 3-month project with these costs?
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Labor: $4,000; Materials: $9,500; Equipment rentals: $1,200; Superintendent's
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annual salary: $36,000; Office rent: $800/month; Office utilities: $375/month.
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a) Less than $12,000
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b) Between $12,000 and $15,000
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c) Between $15,000 and $18,000
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d) More than $18,000
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Correct Answer: a) Less than $12,000
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Rationale: Project overhead includes costs directly for the project that are
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not direct labor/materials. This includes the superintendent (for 3 months:
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$36,000/12 * 3 = $9,000) and office utilities for the project ($375 * 3 =
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$1,125). Office rent ($800/month) is typically company overhead, not project
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overhead, unless specifically allocated. Even if rent is included, total would be
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$9,000 + $1,125 = $10,125 (or $12,525 including rent, but the question asks
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, for "project overhead" which usually excludes general office rent). Based on
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standard practice, the answer is less than $12,000.
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Question 4 x




Using cash accounting, for one month a company bills out $38,000 in
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completed work, receives $22,000 in payments plus $8,000 from previous
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month's billings. They pay $26,000 to supply houses for this month's
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purchases and another $5,000 for last month's purchases. What is the net
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income for the month?
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a) Loss of $1,000
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b) Profit of $1,000
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c) Profit of $5,000
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d) Loss of $5,000
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Correct Answer: a) Loss of $1,000
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Rationale: Under cash accounting, revenue is recorded when cash is
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received, and expenses when cash is paid. Revenue = $22,000 (current) +
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$8,000 (prior) = $30,000. Expenses = $26,000 (current) + $5,000 (prior) =
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$31,000. Net income = $30,000 - $31,000 = -$1,000 (a loss of $1,000).
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Question 5 x




A change order will cost the contractor $15,000 in labor/materials and $2,250
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in overhead. The change relieves the contractor of $18,000 in labor/materials
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and $2,400 in overhead from the original contract. Original bid included 20%
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profit on costs. The contractor wants 20% profit on the change order costs.
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The adjusted contract price for the change order should be:
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