COSC 477 FINAL
COSC Scholarships - Answer- 3.8-Million-dollar endowment total
- minimum single endowment is 25,000
- individual donates 15,000, CIAC will donate 10,000
1998 is when CIAC started
- Budget 2017 is 450,000, 200,00 carry over to 2018
12 goals for 12 years
#1 financial partne...
COSC 477 FINAL
COSC Scholarships - Answer- 3.8-Million-dollar endowment total
- minimum single endowment is 25,000
- individual donates 15,000, CIAC will donate 10,000
1998 is when CIAC started
- Budget 2017 is 450,000, 200,00 carry over to 2018
12 goals for 12 years
#1 financial partner to a GC... - Answer- Bonding Company
Overbillings - Answer- or BILLINGS in EXCSS 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 profits on the P&L statement
Underbillings - Answer- or COSTS and PROFITS in EXCESS of BILLINGS, are an
ASSET that must be recognized on a contractor's balance sheet before its financial
statements can be truly meaningful and useful
- Reflects too little profit on your P&L statement
Overbilled example: - Answer- - Overbilled: If you have invoiced 50% of the contract
amount at the 25% project stage, you would report 25% overbilled.
- Reflect too much profit
Underbilled example: - Answer- - Underbilled: If you have completed 50% of the
project but have only invoiced 25% of the contract amount, you would report 25%
underbilled.
- Reflect too little profit
Overbilled and Underbilled problem: - Answer- The problem with either scenario is
that it results in an inaccurate monthly income statement. If you are OVERBILLED
you will reflect too much profit; if you are UNDERBILLED you will reflect too little
profit.
Large Underbillings - Answer- - This may indicate a problem with unapproved
change orders
- Change order work progressing without the appropriate documentation
- Slow billing practices
- Leads to serious cash flow problems (GC becomes bank)
Large Overbillings - Answer- - Can have some advantages (using the owne'rs
money)
- These may be an indication that you are going to run out of money due to job
borrow (GC using cash from one job to fund another job that is behind on cash)
More companies fail for lack of ____________ than for any other reason. - Answer-
liquidity
, It can be argued that ______________ is the most important resource that any
contractor can manage. - Answer- cash
The ______________ of cash at the individual project level is our responsibility -
Answer- forecasting
The overall cash requirement for the company is the total of the cash needed for all
projects, plus..... - Answer- the cash used by the home and regional offices for on-
going operations.
Construction Accounting Methods - Answer- Cash Basis Accounting
Accrual Basis of Accounting
Cash Basis Accounting - Answer- Money received to date (from owner) - money paid
to date (bills) = Profit to date
- Money in, money out (not accurate)
Accrual Basis of Accounting - Answer- Money earned to date (not just money owner
pays us, but bills we sent to our that we haven't been paid for yet) - cost to date (all
subcontractor billings, whether we have paid them or not) = profit to date
- Much more accurate
Percentage-of-Completion Method - Answer- Large contractors are required to
account for long term contracts using the percentage-of-completion method (PCM)
for their construction contracts
Small Contractor Definition - Answer- Based on the average annual gross receipts
for the last three year...
- Cannot exceed $10,000,000 per year (if you do, you're not a small contractor
anymore)
- If the number exceeds $10,000,000 per year you are a large contractor
A long-term contraction project is a project that spans a.... - Answer- year end (does
not complete in the year in which it is stated)
A short-term project must complete within... - Answer- the calendar year it is started
Motivation Quote from Hard Hat regarding Grandfather - Answer- "Somebody once
told me the definition of hell: on your last day on earth the person you became will
meet the person you could have become."
- Anonymous
GAAP - Answer- Generally Accepted Accounting Principles
Conservatism - Answer- An accounting system should recognize losses as soon as
they are foreseeable, but recognize gains only when they are certain
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Freshy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.49. You're not tied to anything after your purchase.
