U11_HNC_Construction Financial Mangament _CHAPTER2

Which of the following is NOT a function of construction accounting systems?

• Preparing company financial statements

• Ensuring timely payment of bills

• Designing architectural plans

• Collecting income and employment taxes data

What is the third purpose of construction accounting systems?

• To collect and report data for taxes

• To design construction projects

• To manage construction site safety

• To hire construction workers

What ensures that timely payments are made only for bona fide expenses?

• Construction project managers

• The accounting system

• Construction workers

• Safety inspectors

What is the unique characteristic of construction companies mentioned?

• Their architectural designs

• Their accounting systems

• Their construction materials

• Their employee uniforms

What should accounting procedures ensure?

• Transactions fall through the cracks

• Consistent handling of accounting

• Randomized data entry

• Inconsistent reporting

What should reports prepared by accounting software eliminate?

• The need for manual report preparation

• The need for data collection

• The need for cost control

• The need for employee training

What is the account number for "Interest Expense"?

• 880

• 881

• 882

• 883

What is the total amount of fixed assets for the current year?

• 379,287

• 154,775

• 178,544

• 56,896

What are liabilities?

• Obligations to transfer assets or render services

• Assets that are depreciated

• The total value of fixed assets

• The total value of current assets

What is the result of billings in excess of costs and profits?

• Cost savings or profit not equally spread

• Increased liabilities

• Decreased assets

• Increased expenses