Virginia Contractor Practice Exam 200
Questions with Correct Answers Pass
the Exam, 100% Verified ()
Graded A+
OVERVIEW
This exam covers construction management, estimating, financial analysis, and
contractor law/regulations. It includes calculating bids, change orders, profit
margins, overhead, retainage, and unit pricing, as well as evaluating financial
health using ratios like working capital, debt-to-equity, and ROI. It also tests
knowledge of contracts (lump sum, cost-plus, liquidated damages), payroll
calculations, and accounting methods (cash vs. accrual). Additionally, it covers
contractor licensing requirements, legal responsibilities, safety regulations,
insurance, liens, and recovery funds, along with business structures and project
management principles. Overall, the exam focuses on both numerical problem-
solving and legal/operational knowledge needed to run a construction business
effectively.
The owner requests changes, which will cost the contractor $2,500 in labor and materials and $700 in
overhead costs, With the change, the contractor would be relieved of $1,000 in labor costs and $280
in overhead costs from the original contract. The original bid included profit of 10% of all costs. The
contractor wants to make a profit of 10% of all costs on the changes. The amount of change order
should include a request of an additional - correct answer -$2,112
A lump sum contract on a project has a total contract price of $200,000. Retainage has been held back
at the 10%. The contractor has received progress payments of 90% of the project. The contractor
submits a request for the final payment for the now completed project. The final payment amount
should be for - correct answer -Between $35,00 and $40,000
A contractor agrees to unit price contract to Product A for $50 per unit, Product B for $50 per unit, and
Product C for $375 per unit. The contractor is also to add 30% for overhead and profit. How much the
contractor should be paid for producing 27 units of Product A, 56 units Product , and 78 units Product C?
- correct answer -Between $40,000 and $45,000
,A contractor calls for liquidated damages of $500 per day. the project completed five days late because
it was delayed by the rain. The completion would have been ten days earlier if it were not for the rain
delay. There was a $500 bonus per day for the contractor for early completion. No extension of time
was requested or granted. How much does the contractor earn or owe? - correct answer -Owes $2,500
in Liquidated damage
A job has a bid price of 165,000, after direct costs and overhead are factored. What will the final bid be
if the profit markup is 11.5% - correct answer -$186,440
Given the following information, it is advantageous to purchase or rent this particular piece of
equipment if it has 3 useful years? - correct answer -Purchasing saves $3,160
In a cost plus contract, the contractor received direct costs for labor and materials with a 40% markup, a
10% bonus if the total cost to the owner is less than $100,000, and a $500 bonus for each day that th4
work is completed early. the final cost of labor and materials is $60,000 and the work is done 5 days
early. How much is the contractor due? - correct answer -Between $90,000 and $95,000
What is the bid for the following when there is a combined profit and overhead of 30%?
-10 units at $75.00 each
-20 units at $200.00 each
-30 units at $290.00 each - correct answer -$19,214
A firm has current assets of $68,00, fixed assets of $162,000, current liabilities of $45,000, and long term
liabilities of $72,000. The firm's financial position would be considered to be - correct answer -
Adequate for taking on a major project
The cost of equipment if $1,000, the cost of materials $6,000, and direct labor is $3,000. Project
overhead is 20% of direct labor, general overhead is 10% of direct labor and material , and profit is 10%
of all cost. The owner offers to pay $12,000. If the contractor accepts the offer, what would be the
contractor's anticipated profit or loss? - correct answer -Profit $500
A firm's financial situation is as follows:
, current assets $80,000
fixed assets $112,000
inventory including assets $12,000
current liabilities $30,000
long term liabilities $86,000
net annual income $57,000
What is the firm's working capital ? - correct answer -$50,000
A non-exempt employee of a contractor covered by the Fair Labor Standards Act work 30 hours during
the first week of a two week period. The employee works 50 hours during the second week to make up
the missed time. The employee's pay rate is $12 per hour. What should be the employee's gross pay for
this two week period? - correct answer -Between $1,000 and $1,050
A contractor who uses the accrual basis of accounting performs and bills for $10,000 worth in June and
includes $8,000 worth of expenses in June. The contractor receives $8,000 in June for the June work and
also receives $3,000 for work done in May. The contractor pays for $5,000 of the Junes expenses in
June, and also pays $1,000 of May expenses. Disregarding any other income or costs, how much net
income will the contractor recognize in June? - correct answer -$2,000
For one month a company bills out $15,000 in completed work and receives $5,000 in payments. They
pay $5,000 to supply hours and post another $5,000 in bills to pay next month. Using a cash accounting
method and not considering any other revenue or expenses, what is the company's net income for the
month? - correct answer -0
Given the following information, what is the firm's debt to equity ratio? - correct answer -1.53
Given the following information, what is the firm's quick ratio? - correct answer -2.27
Given the following information, what is the firm's return on investment? - correct answer -29.7%
A company has $100,000 in current assets, $100,000 of long term assets, $50,000 of current liabilities,
and $40,000 of long term liabilities. The maximum bond of single product for this company would
typically be limited to - correct answer -$500,000
Questions with Correct Answers Pass
the Exam, 100% Verified ()
Graded A+
OVERVIEW
This exam covers construction management, estimating, financial analysis, and
contractor law/regulations. It includes calculating bids, change orders, profit
margins, overhead, retainage, and unit pricing, as well as evaluating financial
health using ratios like working capital, debt-to-equity, and ROI. It also tests
knowledge of contracts (lump sum, cost-plus, liquidated damages), payroll
calculations, and accounting methods (cash vs. accrual). Additionally, it covers
contractor licensing requirements, legal responsibilities, safety regulations,
insurance, liens, and recovery funds, along with business structures and project
management principles. Overall, the exam focuses on both numerical problem-
solving and legal/operational knowledge needed to run a construction business
effectively.
The owner requests changes, which will cost the contractor $2,500 in labor and materials and $700 in
overhead costs, With the change, the contractor would be relieved of $1,000 in labor costs and $280
in overhead costs from the original contract. The original bid included profit of 10% of all costs. The
contractor wants to make a profit of 10% of all costs on the changes. The amount of change order
should include a request of an additional - correct answer -$2,112
A lump sum contract on a project has a total contract price of $200,000. Retainage has been held back
at the 10%. The contractor has received progress payments of 90% of the project. The contractor
submits a request for the final payment for the now completed project. The final payment amount
should be for - correct answer -Between $35,00 and $40,000
A contractor agrees to unit price contract to Product A for $50 per unit, Product B for $50 per unit, and
Product C for $375 per unit. The contractor is also to add 30% for overhead and profit. How much the
contractor should be paid for producing 27 units of Product A, 56 units Product , and 78 units Product C?
- correct answer -Between $40,000 and $45,000
,A contractor calls for liquidated damages of $500 per day. the project completed five days late because
it was delayed by the rain. The completion would have been ten days earlier if it were not for the rain
delay. There was a $500 bonus per day for the contractor for early completion. No extension of time
was requested or granted. How much does the contractor earn or owe? - correct answer -Owes $2,500
in Liquidated damage
A job has a bid price of 165,000, after direct costs and overhead are factored. What will the final bid be
if the profit markup is 11.5% - correct answer -$186,440
Given the following information, it is advantageous to purchase or rent this particular piece of
equipment if it has 3 useful years? - correct answer -Purchasing saves $3,160
In a cost plus contract, the contractor received direct costs for labor and materials with a 40% markup, a
10% bonus if the total cost to the owner is less than $100,000, and a $500 bonus for each day that th4
work is completed early. the final cost of labor and materials is $60,000 and the work is done 5 days
early. How much is the contractor due? - correct answer -Between $90,000 and $95,000
What is the bid for the following when there is a combined profit and overhead of 30%?
-10 units at $75.00 each
-20 units at $200.00 each
-30 units at $290.00 each - correct answer -$19,214
A firm has current assets of $68,00, fixed assets of $162,000, current liabilities of $45,000, and long term
liabilities of $72,000. The firm's financial position would be considered to be - correct answer -
Adequate for taking on a major project
The cost of equipment if $1,000, the cost of materials $6,000, and direct labor is $3,000. Project
overhead is 20% of direct labor, general overhead is 10% of direct labor and material , and profit is 10%
of all cost. The owner offers to pay $12,000. If the contractor accepts the offer, what would be the
contractor's anticipated profit or loss? - correct answer -Profit $500
A firm's financial situation is as follows:
, current assets $80,000
fixed assets $112,000
inventory including assets $12,000
current liabilities $30,000
long term liabilities $86,000
net annual income $57,000
What is the firm's working capital ? - correct answer -$50,000
A non-exempt employee of a contractor covered by the Fair Labor Standards Act work 30 hours during
the first week of a two week period. The employee works 50 hours during the second week to make up
the missed time. The employee's pay rate is $12 per hour. What should be the employee's gross pay for
this two week period? - correct answer -Between $1,000 and $1,050
A contractor who uses the accrual basis of accounting performs and bills for $10,000 worth in June and
includes $8,000 worth of expenses in June. The contractor receives $8,000 in June for the June work and
also receives $3,000 for work done in May. The contractor pays for $5,000 of the Junes expenses in
June, and also pays $1,000 of May expenses. Disregarding any other income or costs, how much net
income will the contractor recognize in June? - correct answer -$2,000
For one month a company bills out $15,000 in completed work and receives $5,000 in payments. They
pay $5,000 to supply hours and post another $5,000 in bills to pay next month. Using a cash accounting
method and not considering any other revenue or expenses, what is the company's net income for the
month? - correct answer -0
Given the following information, what is the firm's debt to equity ratio? - correct answer -1.53
Given the following information, what is the firm's quick ratio? - correct answer -2.27
Given the following information, what is the firm's return on investment? - correct answer -29.7%
A company has $100,000 in current assets, $100,000 of long term assets, $50,000 of current liabilities,
and $40,000 of long term liabilities. The maximum bond of single product for this company would
typically be limited to - correct answer -$500,000
