# 2-8
1) Which sector has the highest establishment failure rate? A) Specialty contractors B) Heavy and civil construction C) Residential D) Non-residential building 2) Which class of contractors has the highest general overhead ratio? A) Commercial B) Highway C) Residential D) Specialty contractors 3) Which of the following construction personnel are responsible for one or more financial management tasks? A) Superintendents B) Estimators C) Project managers D) All of the above 4) The balance sheet is located in which of the following ledgers? A) Overhead ledger B) Job cost ledger C) General ledger D) Equipment ledger 5) Which of the following would not be considered a capital lease? A) A lease that extends for 70% of the equipment's useful life B) A lease that transfers ownership at the end of the lease C) A lease with a purchase option with a heavily discounted price D) A lease where the present value of the lease payments at market interest rates exceeds 90% of the fair market value of the equipment 6) Which of the following accounting methods does not recognize revenues when the company has the right to receive the revenues? A) Completed contract B) Percentage of completion C) Accrual D) Cash 7) One the balance sheets, assets equal which of the following? A) Liabilities - Equity B) Revenues - Construction Costs C) Liabilities + Equity D) Revenues + Construction Costs 8) A subcontract must provide which of the following to the jobsite? A) Equipment B) Materials C) Labor D) All of the above 9) A construction company is different from a manufacturer in that a construction company is orientated. 1) Which sector has the highest establishment failure rate? A) Specialty contractors B) Heavy and civil construction C) Residential D) Non-residential building 2) Which class of contractors has the highest general overhead ratio? A) Commercial B) Highway C) Residential D) Specialty contractors 3) Which of the following construction personnel are responsible for one or more financial management tasks? A) Superintendents B) Estimators C) Project managers D) All of the above 4) The balance sheet is located in which of the following ledgers? A) Overhead ledger B) Job cost ledger C) General ledger D) Equipment ledger 5) Which of the following would not be considered a capital lease? A) A lease that extends for 70% of the equipment's useful life B) A lease that transfers ownership at the end of the lease C) A lease with a purchase option with a heavily discounted price D) A lease where the present value of the lease payments at market interest rates exceeds 90% of the fair market value of the equipment 6) Which of the following accounting methods does not recognize revenues when the company has the right to receive the revenues? A) Completed contract B) Percentage of completion C) Accrual D) Cash 7) One the balance sheets, assets equal which of the following? A) Liabilities - Equity B) Revenues - Construction Costs C) Liabilities + Equity D) Revenues + Construction Costs 8) A subcontract must provide which of the following to the jobsite? A) Equipment B) Materials C) Labor D) All of the above 9) A construction company is different from a manufacturer in that a construction company is orientated
