WorksheetsU11_HNC_Construction Financial Mangament _CHAPTER2
Total questions: 18
Worksheet time: 9mins
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
How is owner's equity recorded for sole proprietors?
As capital stock
As retained earnings
As a single sum known as owner's capital
As current period net income
Which of the following is NOT a type of liability mentioned?
Accrued taxes
Warranty reserves
Owner's equity
Capital lease payable
What is the gross profit for Big W Construction?
89,926
111,447
512,488
78,013
What is an example of a direct cost in construction?
Material cost for installing a door
Cost of office supplies
Cost of marketing
Cost of legal services
What is included in the amortization of capital leases?
Only interest costs
Only principal costs
Depreciation costs
Only tax costs
What is the primary purpose of using accounting software in construction?
To streamline financial reporting
To automate payroll processing
To improve employee satisfaction
To enhance project design
Which of the following is considered an indirect cost in construction accounting?
Wages of construction workers
Cost of subcontractors
Office rent
Cost of raw materials
What is the significance of owner's equity in a sole proprietorship?
It represents the owner's personal assets
It is recorded as owner's capital
It is used to calculate net income
It is a liability on the balance sheet
