COSC 477 Project Controls Final Exam with all Correct &
100% Verified Answers |Actual Complete Exam |Already
Graded A+
What is the most challenging projection to make? ✔Correct Answer-Unit Price
Unit Price ✔Correct Answer-Have to make two complete different projection:
1. One on cost
2. One on Revenue
Price is good for this quantity plus or minus 25%
- If over or under then opportunity to renegotiate
Why do most companies fail? ✔Correct Answer-- More companies fail for lack of liquidity
than for any other reason
Most important resource that a contractor can manage? ✔Correct Answer-Cash
Overall Cash Requirement for the company ✔Correct Answer-Total cash needed for all
projects plus the cash used by the home and regional offices for on-going operations.
Cash Basis Accounting ✔Correct Answer-Money received to date - money paid out to date =
profit to date
Accrual Basis of Accounting ✔Correct Answer-Money earned to date - cost to date = profit to
date
Overbillings ✔Correct Answer-Over billings or billings in excess of costs and profits, are a
liability that must be recognized on a contractor's balance sheet before its financial statements
can be truly meaningful and useful.
-reflects too much profit on your Profit and Loss statement
- Bonding companies want to know for profit reflection
Underbillings ✔Correct Answer-Under billings or cost and profits in excess, are an asset that
must be recognized on a contractors balance sheet before its financial statements can be truly
meaningful and useful.
- Reflects too little profit on you Profit and Loss statement
- Bonding companies want to know for profit reflection
Small Contractor ✔Correct Answer-Based on average annual gross receipts for the last 3
years.
Cannot exceed $10,000,000 per year, if so then large contractor.
, Percent-of-Completion method ✔Correct Answer-Large contractors are required to account
for long term contracts using the PCM for their construction contracts.
Long term is a project that spans a year end.
Short term project must complete within the calendar year it is started.
Conservatism ✔Correct Answer-(GAAP)
An accounting system should recognize losses as soon as they are foreseeable but recognize
gains only when they are certain.
Consistency ✔Correct Answer-Accounting methods and reports should not change from
period to period. If change is implemented , its effect on the interpretation on the financial
status of the company must be disclosed.
Acquisition Cost Principle ✔Correct Answer-Assets should be valued in the accounting system
at their actual, initial cost.
Revenue Realization Principle ✔Correct Answer-Revenue can be recorded when the sale takes
place and there is a reasonable expectation of collecting the money.
Matching Principle ✔Correct Answer-The revenue and expenses of any transaction must be
reported in the same income statement
Full disclosure principle ✔Correct Answer-Financial reports must be complete and explicit
enough to avoid confusion or mislead its users
Materiality Principle ✔Correct Answer-Any transaction significant enough to influence the
judgment of a reasonable person making a financial decision must be included in an appropriate
report.
Balance Sheet ✔Correct Answer-The balance sheet shows the value of the items that a
company owns and the money that the company owes at a given point in time.
Composed of:
- Assets
- Liabilities
- Owner's Equity
Income Statement ✔Correct Answer-The income statement shows how much money the
company earned and spent over a period of time.
Three main categories of Income Statement ✔Correct Answer-Revenues: money the company
makes over a period of time
Expenses: the money that the company spends over a period of time
100% Verified Answers |Actual Complete Exam |Already
Graded A+
What is the most challenging projection to make? ✔Correct Answer-Unit Price
Unit Price ✔Correct Answer-Have to make two complete different projection:
1. One on cost
2. One on Revenue
Price is good for this quantity plus or minus 25%
- If over or under then opportunity to renegotiate
Why do most companies fail? ✔Correct Answer-- More companies fail for lack of liquidity
than for any other reason
Most important resource that a contractor can manage? ✔Correct Answer-Cash
Overall Cash Requirement for the company ✔Correct Answer-Total cash needed for all
projects plus the cash used by the home and regional offices for on-going operations.
Cash Basis Accounting ✔Correct Answer-Money received to date - money paid out to date =
profit to date
Accrual Basis of Accounting ✔Correct Answer-Money earned to date - cost to date = profit to
date
Overbillings ✔Correct Answer-Over billings or billings in excess of costs and profits, are a
liability that must be recognized on a contractor's balance sheet before its financial statements
can be truly meaningful and useful.
-reflects too much profit on your Profit and Loss statement
- Bonding companies want to know for profit reflection
Underbillings ✔Correct Answer-Under billings or cost and profits in excess, are an asset that
must be recognized on a contractors balance sheet before its financial statements can be truly
meaningful and useful.
- Reflects too little profit on you Profit and Loss statement
- Bonding companies want to know for profit reflection
Small Contractor ✔Correct Answer-Based on average annual gross receipts for the last 3
years.
Cannot exceed $10,000,000 per year, if so then large contractor.
, Percent-of-Completion method ✔Correct Answer-Large contractors are required to account
for long term contracts using the PCM for their construction contracts.
Long term is a project that spans a year end.
Short term project must complete within the calendar year it is started.
Conservatism ✔Correct Answer-(GAAP)
An accounting system should recognize losses as soon as they are foreseeable but recognize
gains only when they are certain.
Consistency ✔Correct Answer-Accounting methods and reports should not change from
period to period. If change is implemented , its effect on the interpretation on the financial
status of the company must be disclosed.
Acquisition Cost Principle ✔Correct Answer-Assets should be valued in the accounting system
at their actual, initial cost.
Revenue Realization Principle ✔Correct Answer-Revenue can be recorded when the sale takes
place and there is a reasonable expectation of collecting the money.
Matching Principle ✔Correct Answer-The revenue and expenses of any transaction must be
reported in the same income statement
Full disclosure principle ✔Correct Answer-Financial reports must be complete and explicit
enough to avoid confusion or mislead its users
Materiality Principle ✔Correct Answer-Any transaction significant enough to influence the
judgment of a reasonable person making a financial decision must be included in an appropriate
report.
Balance Sheet ✔Correct Answer-The balance sheet shows the value of the items that a
company owns and the money that the company owes at a given point in time.
Composed of:
- Assets
- Liabilities
- Owner's Equity
Income Statement ✔Correct Answer-The income statement shows how much money the
company earned and spent over a period of time.
Three main categories of Income Statement ✔Correct Answer-Revenues: money the company
makes over a period of time
Expenses: the money that the company spends over a period of time
