Free Construction Industry Financial Professional Basic Questions and Answers

Question 1

What financial statement lists assets from current to long term?

Accepted Answer

Balance Sheet

Answer

The balance sheet is a financial statement that lists assets from current to long term. It provides a snapshot of a company's financial position at a specific point in time by showing what the company owns (assets), what it owes (liabilities), and the shareholders' equity. Assets are typically listed in order of liquidity, starting with current assets and moving towards long-term assets. This allows stakeholders to understand the company's financial health and its ability to meet short-term and long-term obligations.

Question 2

What balance sheet formal is verticle?

Accepted Answer

Report

Answer

The correct answer is "Report". A vertical balance sheet format is a type of financial statement that presents the assets, liabilities and equity of a company in  a vertical columnar format. In this liabilities and equity on the right side. This format commonly used in financial reporting to provide a clear and organized presentation of a company's financial position.

Question 3

Income statement format that separates the cost of goods sold into categories?

Accepted Answer

Multi-Step

Answer

The multi-step income statement format separates the cost of goods sold into categories. This format provides a more detailed and comprehensive view of the company's financial performance by breaking down the cost of goods sold into different categories, such as direct materials, direct labor and overhead expenses. This allows for better analysis and understanding of the company's cost structure and profitability.

Question 4

Which is not a cash activity listed on the cash flow statement?

Accepted Answer

Purchasing activities

Answer

Purchasing activities is not a cash activity listed on the cash flow statement because it refers to the process of acquiring goods or services for a business, which involves the use of cash or other forms of payment. However, the cash flow statement focuses on the movement of cash in and out of the business, specifically related to operating, investing and financing activities. Purchasing activities are typically included under operating activities, as they represent the day-to-day transactions of the business.

Question 5

Earning per share show investors the _________ earned per outstanding of stock.

Accepted Answer

Net Income

Answer

Earnings per share is a financial metric that indicates the amount of profit generated by a company for each outstanding share of stock. It is calculated by dividing the net income (profit after taxes and interest) by the number of outstanding shares. Therefore, net income is the correct answer as it represents the total profit earned by the company, which is then divided by the number of shares to determine the earnings per share.

CCIFP - Certified Construction Industry Financial Professional Practice Test

CCIFP - Certified Construction Industry Financial Professional Practice Test

Free Construction Industry Financial Professional Basic Questions and Answers