CCIFP FINAL EXAM NEWEST 2024 -2025
ACTUAL EXAM COMPLETE 100
QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS)
What are 2 accepted methods of accounting - reporting?
Correct Answer 1) POC - Percentage of Completion
Method
2) CCM - Completed Contract Method
What are the 5 steps of strategic planning? Correct
Answer 1) Develop an understanding of the existing
business (depending on what contractors perform)
2) Identify new business opportunities (expansion)
3) analyze alternatives (Risks, additional capital cost etc)
4) Develop a strategic plan (should be written & used to
measure progress)
5) Implement the plan
What are 2 types of remedy clauses in contracts? Correct
Answer 1) Increase the scope of work
2) Offering site conditions
That is the zero gross profit option for the completed
contract method? Correct Answer Recognize revenue and
cost for period, but zero gross profit allow company to
show costs for the period
,When accounting for losses, what is recommended
method of recording? Correct Answer Should be as
additional costs not reduction of revenue
What are the 4 ways to manage cash? Correct Answer 1)
Accelerate collections
2) Decelerate disbursements
3) Increase investment options
4) Decrease borrowing needs
Who can use the percentage of completion method for the
IRS? Correct Answer Residential contractors and certain
shipbuilders
What is a labor & material payment bond? Correct Answer
Guarantees that those who perform services & provide
material will be paid
What are the tools a project manager will use to analyze
capital expenditure? Correct Answer 1) Net investment
cash outflow - beginning of the project purchases
2) Operating cash flow of investments
3) Determining pay back period
IRS definition of a small contractor and what is the
exception Correct Answer 1) Contracts completed within 2
years
2) Average annual gross receipts for preceding 3 years do
not exceed 10 million
- Exempted from percentage of completion method
, What is the IRS's principal source of legislative guidance
for the construction industry? Correct Answer IRC (Internal
Revenue Code) Section 460 - Special rules for long term
contracts
What is ABC? Correct Answer Activity Based Costing
1) Links indirect costs to activities
2)Allocates "activity" cost to jobs based on specific
attributes
What is a retrospective rating plan? Correct Answer
Premium determined after policy expired based upon
actual loss experience
1) Incurred Loss - Insurer holds loss reserves until losses
incurred
2) Expected Loss - Premium calculated on expected loss
amount
What are the 2 conditions that need to be met for indirect
costs to be deferred as contract costs for completed
contract method or percentage of completion method?
Correct Answer 1) Costs related directly to performance of
specific contract-in-progress
2) Costs related directly to the contractor's contracting
activities
What are financial guarantee bonds? Correct Answer
Used for financial contracts i.e. Release of lien guarantee
payment of wages and fringe released retention (when not
in A/R)
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