Question 1

The expenses incurred in extra work is

Accepted Answer

A)  Debited in contract amount
B)  Credited in contract amount
C)  Not shown in contract amount
D)  None of the aboveE) A) and C)
F) B) and C)

Question 2

The cost of work that has been done by the contractor on the closing date of account, but has not reach stipulated stages to qualify certification of architect of contractee

Accepted Answer

A)  Work certified
B)  Work uncertified
C)  Contract price
D)  None of theseE) A) and B)
F) All of the above B

Question 3

Example for cost plus contract

Accepted Answer

A)  Construction work in war
B)  Manufacture of ship in special type or design
C)  Construction of fish tank
D)  Both a and bE) None of the above
F) All of the above

Question 4

Retention money is retained by whom ………………….

Accepted Answer

A)  Contractor
B)  Contractee
C)  Both a and b
D)  None of theseE) None of the above
F) A) and B)

Question 5

In which situation, 2/3 of national profit credited to P & L a/c

Accepted Answer

A)  If the value of work certified equal to or more than 90% of the contract price
B)  If the value of work certified less than 25% of the contract price
C)  Both a and b
D)  If the value of work certified equal to or more than 50% but less than 90% of the contract priceE) A) and B)
F) A) and C) D

Question 6

If the value of work certified equal to or more than 90% of contract price, profit to be credited is……………….

Accepted Answer

A)  2/3 * National profit * (Cash received/Work certified) 
B)  No profit credited to P&L a/c
C)  Estimated profit on completion*(Work certified/Contract price) 
D)  1/3 * National profit * (Cash received/Work certified) E) None of the above
F) B) and D)

Question 7

If the value of work certified less than 25% of contract price,profit to be credited to P&L is

Accepted Answer

A)  No profit is credited to P & L a/c
B)  1/3 of national profit credited to P & L a/c
C)  2/3 of national profit credited to P & L a/c
D)  None of theseE) None of the above
F) All of the above A

Exam 8: Contractor Payments and Profit Calculation

The expenses incurred in extra work is

Correct Answer
verified

The cost of work that has been done by the contractor on the closing date of account, but has not reach stipulated stages to qualify certification of architect of contractee

Correct Answer
verified
B

Example for cost plus contract

Correct Answer
verified

Retention money is retained by whom ………………….

Correct Answer
verified

In which situation, 2/3 of national profit credited to P & L a/c

Correct Answer
verified
D

If the value of work certified equal to or more than 90% of contract price, profit to be credited is……………….

Correct Answer
verified

If the value of work certified less than 25% of contract price,profit to be credited to P&L is

Correct Answer
verified
A

Exam 8: Contractor Payments and Profit Calculation

The expenses incurred in extra work is

Correct AnswerverifiedShow Answer

The cost of work that has been done by the contractor on the closing date of account, but has not reach stipulated stages to qualify certification of architect of contractee

Correct AnswerverifiedB

Example for cost plus contract

Correct AnswerverifiedShow Answer

Retention money is retained by whom ………………….

Correct AnswerverifiedShow Answer

In which situation, 2/3 of national profit credited to P & L a/c

Correct AnswerverifiedD

If the value of work certified equal to or more than 90% of contract price, profit to be credited is……………….

Correct AnswerverifiedShow Answer

If the value of work certified less than 25% of contract price,profit to be credited to P&L is

Correct AnswerverifiedA

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified
A