A) project 10) B) schedule C) budget D) process Where would the cost of Federal Unemployment Tax be recorded on the income statement? A) Labor C) Materials D) Equipment B) Other 11) For tax purposes, what recovery period would be used for office furniture? A) Ten years B) Three years C) Seven years D) Five years 12) Which of the following transactions result in a change in the company's cash balance (i.e., 110 Cash from the Chart of Accounts in Figure 2-1 of the textbook)? A) Invoices charged to a job without holding retention B) Paying invoices C) Invoices charged to a job with holding retention D) A and B 13) Receiving payment for a client who has previously been billed affect which of the following? A) Income statement C) Balance sheet B) Job cost ledger D) All of the above 14) Which of the following occurs when the purchase of a piece of equipment with a loan is recorded into the accounting system? A) Assets increase. C) Equipment expenses increase. B) Long-term liabilities increase. D) A and C 15) Which of the following ratios may be calculated before and after taxes? A) Return on equity C) Profit margin B) Return on assets D) All of the above 16) Historically, speculative builders have used this method of accounting because the contract amount was not known until the project was sold? A) Accrual C) Cash B) Completed contract D) Percentage of completion as the assetgets older. 17) Using the straight-line depreciation method, the annual depreciation amount_ A) increases C) decreases B) is constant D) varies from year-to-year 18) On the committed cost worksheet, a fixed-price subcontract would be entered into which of the following columns? A) Committed costs C) Non-committed costs invoiced B) Committed costs invoiced D) A and B 19) What is a good target range for the degree of fixed asset newness for a construction company? A) 60 to 75% B) 0 to 40% C) 40 to 60% D) 60 to 100% 20) Which of the following accounting methods require companies to include over- and under-billings on their balance sheet? A) Accrual C) Percentage of completion B) Completed contract D) Cash 2