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CCIFP Exam Questions & Answers | 100% Correct Answers | Verified | Latest 2024 Version
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CCIFP Exam Questions & Answers | 100% Correct Answers | Verified | Latest 2024 Version
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CCIFP Exam Questions & Answers | 100%Correct Answers | Verified | Latest 2024
Version
What is the disclosure on the balance sheet for anticipated losses
on contracts? Correct Answer Estimated liability to complete
contracts
What is the IRS's definition of a "Home Construction Contract"?
Correct Answer Contracts if 80% of the total contract costs are:
1) Dwelling units, 4 of fewer
2) Improvements directly related to such dwelling units
3) Excluded from IRC 460 - Special rules from long term contracts
What is LAN? Correct Answer Local Area Network
What is the difference between cloud computing & virtual
environments? Correct Answer - Cloud computing allows access
to data through a browser
- Virtual environment allows remote access to data, but access
software require on computer to access
What is the "look-Back" requirement? Correct Answer Taxpayer
using percentage of completion must redetermined contract profit
in year of completion and difference reported in periods are
subject to interest charge or refund.
What are the 4 types of contracts? Correct Answer 1) Fixed price
or lump sum
2) Time & Material
3) Cost-type contracts
4) Unit Price
,What is a fixed price or lump sum contract? Correct Answer The
price is not usually subject to adjustment
What is a time & material type contract? Correct Answer The
price is based on direct labor hours and cost of materials
What is a cost-type contract? Correct Answer Provides for
reimbursed of allowable or other defined costs incurred plus fee.
Can also include a gross max (GMP)
What is a unit price type contract? Correct Answer Contractor
pays a specific amount per unit, variable is the number of units
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
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