ICCIFP Sample Questions (taken from www.iccifp.org)

Christopher Zaucha
Quiz by Christopher Zaucha, updated more than 1 year ago
Christopher Zaucha
Created by Christopher Zaucha over 5 years ago
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Sample questions copied from www.iccifp.org

Resource summary

Question 1

Question
Which of the following is an example of qualifying assets that warrant capitalization of interest?
Answer
  • Inventories manufactured on a repetitive basis
  • Assets acquired with gifts and grants
  • Investments accounted for using the equity method
  • Assets constructed and intended for sale or lease

Question 2

Question
A contractor is awarded a contract by a school district. The contract requires 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. Which type of bond will enable the contractor to provide the required guarantee?
Answer
  • Bid
  • Performance
  • Labor and material payment
  • Warranty

Question 3

Question
Two companies form a joint venture. Company A contributes $100,000. Company B contributes construction equipment with a fair market value established by the venture partners of $100,000. Company B’s depreciated cost of the equipment is $60,000. There are no cash withdrawals by the venture partners. Each partner receives 50% ownership and joint control over the joint venture. What should Company A and Company B show on their respective financial statements as their initial investment in the joint venture?
Answer
  • Company A – $100,000; Company B – $100,000
  • Company A – $100,000; Company B – $60,000
  • Company A – $100,000; Company B – $40,000
  • Company A – $60,000; Company B – $60,000

Question 4

Question
Under the completed-contract method of accounting, contract revenue and costs are recognized when the:
Answer
  • Contract is billed in full
  • Final retainage is collected
  • Warranty has expired
  • Project is completed

Question 5

Question
A road building company will acquire a site in a nearby community and build a new batch plant on it. The following are expenditures that will be incurred prior to placing the new plant in service: A. Freight to bring in the new equipment – $17,000 B. Equipment cost – $240,000 C. Installation and set-up cost – $36,000 D. Cost of land at the new site – $45,000 E. Sales tax on equipment – $12,000 F. 3-year maintenance contract for equipment – $30,000 What is the basis for computing depreciation for the new facility?
Answer
  • $269,000
  • $305,000
  • $350,000
  • $380,000

Question 6

Question
In which phase of the contract life cycle does a contractor have the opportunity to influence the contract terms and conditions?
Answer
  • Pre-bid or bid
  • Contract award
  • Contract performance
  • Contract completion

Question 7

Question
In August 2010, a contractor who uses the percentage-of-completion method of accounting and the output method won a $21,000,000 contract to construct 200 miles of highway. The project was expected to last 20 months, take 800,000 hours to complete, and cost $20,000,000. The following data pertain to the construction period: A. Costs to date – $4,000,000 B. Estimated costs to complete – $16,000,000 C. Labor hours incurred – 150,000 D. Estimated labor hours to complete – 650,000 E. Miles completed – 35 What amount of revenue should be recognized in 2010?
Answer
  • $3,675,000
  • $3,937,500
  • $4,200,000
  • $5,250,000

Question 8

Question
The Economic Stimulus Act of 2008 and the American Recovery and Reinvestment Act of 2009 increased the maximum amount of qualified property that may be deducted under IRC Section 179 for tax years beginning in 2008 and 2009 to:
Answer
  • $134,000
  • $150,000
  • $100,000
  • $250,000

Question 9

Question
The primary goal of an incentive compensation plan is to:
Answer
  • Satisfy the requirements of the Fair Labor Standards Act
  • Motivate salaried employees
  • Motivate group performance to achieve the company’s identified goals
  • Provide tax-deferred retirement benefits

Question 10

Question
A construction company is a semiweekly depositor of payroll taxes. The company paid annual bonuses to employees on Wednesday, December 29, 2010. The tax liability for the bonus payroll was $105,000. On Thursday, December 30, 2010, employees received their regular weekly pay for which the company incurred a $35,000 payroll tax liability. What is the latest date by which the company must make a payroll tax deposit to avoid late penalties?
Answer
  • $105,000 must be deposited by Thursday, December 30, 2010 and $35,000 by Wednesday, January 5, 2011
  • $105,000 must be deposited by Monday, January 3, 2011 and $35,000 by Wednesday, January 5, 2011
  • $140,000 must be deposited by Wednesday, January 5, 2011
  • $140,000 must be deposited by Monday, January 3, 2011
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