CCIFP Cheat Sheet 2026

The 30 highest-yield CCIFP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is the primary purpose of a construction company's line of credit (LOC)? → To manage short-term working capital and cash flow gaps
2. A contractor with negative working capital may signal which risk to lenders and sureties? → Inability to meet short-term obligations
3. When a construction company sells a fully depreciated piece of equipment for $8,000, this amount is recognized as: → Gain on disposal of asset
4. Which financial metric do construction lenders most commonly use to assess a contractor's ability to service debt? → Debt service coverage ratio (DSCR)
5. Which is not a cash activity listed on the cash flow statement? → Purchasing activities
6. Which of the following contract types is usually followed by Railway Department for construction purposes? → Item rate
7. What financial statement lists assets from current to long term? → Balance Sheet
8. Which ratio measures the relationship between a construction company's total liabilities and its tangible net worth? → Leverage ratio (liabilities to net worth)
9. What is the primary purpose of a cash flow forecast in construction project management? → To anticipate timing differences between cash receipts and disbursements
10. Which payment term in a subcontract is most favorable to a general contractor's cash flow? → Pay-when-paid clauses that tie sub payments to owner receipts
11. What is a wage structure? → Wage structure is hierarchy of jobs assigned pay grades and ranges
12. Which costing approach charges equipment ownership costs (depreciation, insurance, taxes) to projects based on time on-site? → Ownership cost allocation
13. Areas of focus in the construction industry are? → All of the above
14. Under the percentage-of-completion method, contract revenue is recognized based on: → Costs incurred to date divided by total estimated costs
15. Which of the following type of organization is also known as military organization? → Line Organization
16. Which equipment cost classification represents routine maintenance to keep equipment in working order? → Revenue expenditure
17. The double declining balance method applies which rate to book value each year? → 2 times the straight-line rate
18. The assumption that states that business can divide up their activities into artificial time periods. → Periodicity assumption
19. In construction cash flow terminology, what does 'float' refer to? → Funds temporarily available because checks issued have not yet cleared
20. Which of the following is a qualitative, not quantitative, method of risk assessment? → Using a risk matrix to rank risks as 'High, Medium, or Low'
21. In the context of a large-scale construction project budget, what is the primary difference between a contingency reserve and a management reserve? → Contingency covers 'known unknowns,' while management reserve covers 'unknown unknowns'.
22. Which trial balance lists all the business accounts before year-end adjusting journal entries are made? → Unadjusted Trial Balance
23. Which metric measures how efficiently a construction company uses its equipment to generate revenue? → Equipment utilization rate
24. Which financial document is most critical for a construction company seeking a surety bond? → CPA-prepared financial statements (reviewed or audited)
25. In the footnotes to a construction company's financial statements, what is the primary purpose of disclosing the backlog of uncompleted contracts? → To provide an indication of the company's future revenues and workload.
26. Retainage in construction contracts is typically released when: → Substantial completion or final completion is achieved
27. In construction project financing, a 'completion guarantee' is typically provided by: → The general contractor to the lender
28. Which type of bond guarantees that a construction contractor will complete the project according to contract terms? → Performance bond
29. Entries that are made at the end of a period to correct accounts before financial statements are prepared. → Adjusting entries
30. Which type of construction loan is disbursed in stages as project milestones are completed? → Draw loan (construction draw)