The project is completed, and the contractor bills the client for $10,000 of previously withheld retention. The contractor’s total assets do not change.
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Highway contractors generally have higher current liabilitie…
Highway contractors generally have higher current liabilities-to-net worth and debt-to-equity ratios than residential contractors.
A company makes a $2,433.17 capital lease payment, including…
A company makes a $2,433.17 capital lease payment, including $800 of interest. Profit and equity decrease by $2,433.17.
Drawing $100,000 from a previously signed construction loan…
Drawing $100,000 from a previously signed construction loan increases cash flow by $100,000 but does not change total assets.
When preparing a bid, a contractor may increase its overhead…
When preparing a bid, a contractor may increase its overhead and profit markup if its gross profit margin has been too low.
A contractor purchases a truck for $20,000. The truck has a…
A contractor purchases a truck for $20,000. The truck has a 5-year useful life and an estimated $5,000 salvage value. Using the straight-line method, what is the truck’s book value at the end of Year 3?
Which of the following is NOT a reason why financial managem…
Which of the following is NOT a reason why financial management in construction differs from financial management in other industries?
A very short Average Age of Accounts Payable may indicate th…
A very short Average Age of Accounts Payable may indicate that a company is underusing trade financing.
When selecting a computerized accounting system, a construct…
When selecting a computerized accounting system, a construction company should determine which features and modules fit its actual needs rather than assuming that a system with more features is necessarily better.
Recording $1,800 of depreciation on the general office decre…
Recording $1,800 of depreciation on the general office decreases total assets, profit, and equity by $1,800.