Accounting for Construction Contract Free No.1 MCQ Quiz

MCQ Quiz on Accounting for Construction Contract

MCQ Quiz on Accounting for Construction Contract
MCQ Quiz on Accounting for Construction Contract

In this article we are going to provide a Multiple choice questions on accounting for construction contract with MCQ Quiz. MCQ Quiz on Accounting for Construction Contract is below. And after the window on this MCQ Quiz, MCQs on construction contract are below which is invole in Accounting for Construction Contract Free No.1 MCQ Quiz.

MCQ Quiz Start Here

6

Construction Contract

MCQ QUIZ on Construction Contract

1 / 30

17.Which of this is not a type of contract ?
(a)Item Rate Contract
(b)Open Contract
(c)Percentage Rate Contract
(d)Lump-Sum Contract

2 / 30

6.Which of this is not an advantage of Lump-Sum Contract?
(a)Owner does not require funds to start project
(b)Detailed measurement not required
(c)Project cost is already know
(d)Speed in construction

3 / 30

21. Which term refers to a contract specially negotiated for construction of an asset or a combination of assets that are closely interrelated or entity dependent in terms of their design technology and function for their ultimate purpose or use
a)Construction Contract
b)Fixed Price Contract
c)Cost Plus Contract
d)None Of These

4 / 30

28. In accounting for a long-term construction contract using the percentage-of-completion method, the progress billings on contracts account is a
a)Contra current asset account.
b)Contra noncurrent asset account.
c)Noncurrent liability account.
d)Revenue account.

5 / 30

23. When borrowing cost are capitalised as part of the cost of qualifying asset
a)When short term borrowing are taken
b)When assets are acquired under finance leases
c)When it will result in future economic benefits to the enterprise
d)When amortization of premiums against borrowing take place

6 / 30

9.In which type of contract measurment of executed items are not required to keep ?

(a)Item Rate Contract
(b)Lump-Sum Contract
(c)Percentage Rate Contract
(d)Cost Plus Contract

7 / 30

4.When owner is supplying materials and bidder needs to complete all item through supplying labour then such contracts are known as ________.
(a)Labour Contract
(b)Material Supply Contract
(c)Entire Contract
(d)BOT Contract

8 / 30

8.In lumpsum contract, If contractor abondones work he or she is liable to ________
(a)To 10% penalty of total amount
(b)To a 0.1% penalty per day of total amount
(c)To get their terminated and receive work done amount
(d)To be not eligible to get any amount of work done

9 / 30

12.In which type of contract, bidders are allowed to quote rate in percentage of tender amount?
(a)Iteam Rate Contract
(b)Percentage Rate Contract
(c)Measured Contract
(d)BOT Contract

10 / 30

18.Which of the following is not a type of Integrated Contract?
(a)Lump Sum Contract
(b)Design - Build Contract
(c)Turn Key Contract
(d)BOT Contract

11 / 30

7.A lump-sum contract is also a type of ________ Contract
(a)Percentage Rate Contract
(b)Turn Key Contract
(c)Entire Contract
(d)Cost Plus Contract

12 / 30

26. The rationale for adoption of the percentage-of-completion method is that:
A. Results are more conservative.
B. It provides a measure of periodic accomplishment.
C. It is a better match with legal ownership.
D. It results in a lower income tax

13 / 30

5.When owner of the project only performs duty of promoter and delegates duty of design and construction of project to large consortium or firm then such contract is called as ________.
(a)Item Rate Contract
(b)All In Contract
(c)Cost Plus Contract
(d)Lump-Sum Contract

14 / 30

25. When should not a contract for a number of assets be treated as a separate construction contract for each asset
a)The contract are performed concurrently
b)Separately proposals have been submitted for each asset
c)The cost and revenue of each asset can be separately identified
d)Each as it has been subject to separate negotiation

15 / 30

24.Which term refers to a construction contract in which the contractor agrees to a fixed contract price for a fixed rate per unit of output which in some cases is subject to cost escalation clauses
a)Construction contract
b)Fixed price contract
c)Cost plus contract
d)None of these

16 / 30

1.Which of this is not an advantage of Material Supply Contract?
(a)Quick Delivery & Payment
(b)Comparative Cheap Rates
(c)No hassle of damage & theft during transportatio
(d)Quality Checking Required

17 / 30

14.In which type of contract possiblity of ring formation can be avoided?
(a)Percentage Rate Contract
(b)Material Supply Contract
(c)Item Rate Contract
(d)Labour Contract

18 / 30

15.In which type of contract bidders are allowed to quote rate of individual items?
(a)BOT Contract
(b)Item Rate Contract
(c)Material supply Contract
(d)Piece work agreement

19 / 30

20.Which of these is not a type of Cost Plus Contract?
(a)Cost Plus Fixed Fee Contract
(b)Cost Plus Percentage Rate Contract
(c)Target Contract
(d)Turn Key Contract

20 / 30

19.Which of these is not a separated contract?
(a)Lump sum contract
(b)BOT Contract
(c)Item Rate Contract
(d)Cost Plus Contract

21 / 30

29. Which of the following Indian state stands at the second rank after Maharashtra in terms of best RERA execution?
a)Chhattisgarh
b)West Bengal
c)Tamil Nadu
d)Gujarat

22 / 30

22. Which term refers to a construction contract in which the contractor is reimbursed for allowable or otherwise defined cost plus percentage of these cost are a fixed fee
a)Construction Contract
b)Fixed Price Contract
c)Cost Plus Contract
d)None Of These

23 / 30

10.In Percentage Rate contract, bidders can bid their rate at ________ rates indicated in bill of quanities.
(a)At Par With
(b)% Above
(c)% Below
(d)All of the above

24 / 30

3.Which of the following is a disadvantage of Labour Contract?
(a)Greater Co-ordination is required
(b)Large Material Storage Required
(c)Material Stock Record and Security Required
(d)All of the above

25 / 30

11.In which type of contract among listed below has the highest chances of ring formation?
(a)Turn Key Contract
(b)Item Rate Contract
(c)Percentage Rate Contract
(d)BOT Contract

26 / 30

16.Which of this is not a type of Cost Plus Contract ?
(a)Cost Plus Percentage Rate Contract
(b)Target Contract
(c)Piece work agreement
(d)Cost plus sliding fee contract

27 / 30

30. Is it mandatory for all the states to form their own Regulatory Authority?
a)Yes
b)No
c)Except in Tamil Nadu
d)Except in Karnataka

28 / 30

2.When contractor is only supplying materials then such contracts are called as ________
(a)Turn Key Contract
(b)Item Rate Contract
(c)Material Supply Contract
(d)Labour Contract

29 / 30

27. The percentage-of-completion method violates the general rule on revenue recognition that:
A. Collection is reasonably assured.
B. Costs are known or reasonably estimated.
C. The earnings process is complete.
D. Collections have been received.

30 / 30

13.In which type of contract there is a possibility of unbalanced tender ?
(a)Percentage Rate Contract
(b)Lump-Sum Contract
(c)Item Rate Contract
(d)Turn Key Contract

Your score is

The average score is 39%

0%

MCQ. 1 to 5

MCQ Quiz on Accounting for Construction Contract

1.Which of this is not an advantage of Material Supply Contract?
(a)Quick Delivery & Payment
(b)Comparative Cheap Rates
(c)No hassle of damage & theft during transportatio
(d)Quality Checking Required

2.When contractor is only supplying materials then such contracts are called as __
(a)Turn Key Contract
(b)Item Rate Contract
(c)Material Supply Contract
(d)Labour Contract

3.Which of the following is a disadvantage of Labour Contract?
(a)Greater Co-ordination is required
(b)Large Material Storage Required
(c)Material Stock Record and Security Required
(d)All of the above

4.When owner is supplying materials and bidder needs to complete all item through supplying labour then such contracts are known as __.
(a)Labour Contract
(b)Material Supply Contract
(c)Entire Contract
(d)BOT Contract

5.When owner of the project only performs duty of promoter and delegates duty of design and construction of project to large consortium or firm then such contract is called as __.
(a)Item Rate Contract
(b)All In Contract
(c)Cost Plus Contract
(d)Lump-Sum Contract

MCQ. 6 To 10

MCQ Quiz on Accounting for Construction Contract

6.Which of this is not an advantage of Lump-Sum Contract?
(a)Owner does not require funds to start project
(b)Detailed measurement not required
(c)Project cost is already know
(d)Speed in construction

7.A lump-sum contract is also a type of __ Contract
(a)Percentage Rate Contract
(b)Turn Key Contract
(c)Entire Contract
(d)Cost Plus Contract

8.In lumpsum contract, If contractor abondones work he or she is liable to __
(a)To 10% penalty of total amount
(b)To a 0.1% penalty per day of total amount
(c)To get their terminated and receive work done amount
(d)To be not eligible to get any amount of work done

9.In which type of contract measurment of executed items are not required to keep ?
(a)Item Rate Contract
(b)Lump-Sum Contract
(c)Percentage Rate Contract
(d)Cost Plus Contract

10.In Percentage Rate contract, bidders can bid their rate at __ rates indicated in bill of quanities.
(a)At Par With
(b)% Above
(c)% Below
(d)All of the above

MCQ. 11 To 15

MCQ Quiz on Accounting for Construction Contract

11.In which type of contract among listed below has the highest chances of ring formation?
(a)Turn Key Contract
(b)Item Rate Contract
(c)Percentage Rate Contract
(d)BOT Contract

12.In which type of contract, bidders are allowed to quote rate in percentage of tender amount?
(a)Iteam Rate Contract
(b)Percentage Rate Contract
(c)Measured Contract
(d)BOT Contract

13.In which type of contract there is a possibility of unbalanced tender ?
(a)Percentage Rate Contract
(b)Lump-Sum Contract
(c)Item Rate Contract
(d)Turn Key Contract

14.In which type of contract possiblity of ring formation can be avoided?
(a)Percentage Rate Contract
(b)Material Supply Contract
(c)Item Rate Contract
(d)Labour Contract

15.In which type of contract bidders are allowed to quote rate of individual items?
(a)BOT Contract
(b)Item Rate Contract
(c)Material supply Contract
(d)Piece work agreement

MCQ. 16 To 20

MCQ Quiz on Accounting for Construction Contract

16.Which of this is not a type of Cost Plus Contract ?
(a)Cost Plus Percentage Rate Contract
(b)Target Contract
(c)Piece work agreement
(d)Cost plus sliding fee contract

17.Which of this is not a type of contract ?
(a)Item Rate Contract
(b)Open Contract
(c)Percentage Rate Contract
(d)Lump-Sum Contract

18.Which of the following is not a type of Integrated Contract?
(a)Lump Sum Contract
(b)Design – Build Contract
(c)Turn Key Contract
(d)BOT Contract

19.Which of these is not a separated contract?
(a)Lump sum contract
(b)BOT Contract
(c)Item Rate Contract
(d)Cost Plus Contract

20.Which of these is not a type of Cost Plus Contract?
(a)Cost Plus Fixed Fee Contract
(b)Cost Plus Percentage Rate Contract
(c)Target Contract
(d)Turn Key Contract

MCQ. 21 To 25

MCQ Quiz on Accounting for Construction Contract

  1. Which term refers to a contract specially negotiated for construction of an asset or a combination of assets that are closely interrelated or entity dependent in terms of their design technology and function for their ultimate purpose or use
    (a)Construction Contract
    (b)Fixed Price Contract
    (c)Cost Plus Contract
    (d)None Of These
  1. Which term refers to a construction contract in which the contractor is reimbursed for allowable or otherwise defined cost plus percentage of these cost are a fixed fee
    (a)Construction Contract
    (b)Fixed Price Contract
    (c)Cost Plus Contract
    (d)None Of These
  1. When borrowing cost are capitalised as part of the cost of qualifying asset
    (a)When short term borrowing are taken
    (b)When assets are acquired under finance leases
    (c)When it will result in future economic benefits to the enterprise
    (d)When amortization of premiums against borrowing take place

24.Which term refers to a construction contract in which the contractor agrees to a fixed contract price for a fixed rate per unit of output which in some cases is subject to cost escalation clauses
(a)Construction contract
(b)Fixed price contract
(c)Cost plus contract
(d)None of these

  1. When should not a contract for a number of assets be treated as a separate construction contract for each asset
    (a)The contract are performed concurrently
    (b)Separately proposals have been submitted for each asset
    (c)The cost and revenue of each asset can be separately identified
    (d)Each as it has been subject to separate negotiation

MCQ. 26 To 30

MCQ Quiz on Accounting for Construction Contract

  1. The rationale for adoption of the percentage-of-completion method is that:
    (a) Results are more conservative.
    (b) It provides a measure of periodic accomplishment.
    (c) It is a better match with legal ownership.
    (d) It results in a lower income tax
  1. The percentage-of-completion method violates the general rule on revenue recognition that:
    (a)Collection is reasonably assured.
    (b) Costs are known or reasonably estimated.
    (c)The earnings process is complete.
    (d) Collections have been received.
  1. In accounting for a long-term construction contract using the percentage-of-completion method, the progress billings on contracts account is a
    (a)Contra current asset account.
    (b)Contra noncurrent asset account.
    (c)Noncurrent liability account.
    (d)Revenue account.
  1. Which of the following Indian state stands at the second rank after Maharashtra in terms of best RERA execution?
    (a)Chhattisgarh
    (b)West Bengal
    (c)Tamil Nadu
    (d)Gujarat
  1. Is it mandatory for all the states to form their own Regulatory Authority?
    (a)Yes
    (b)No
    (c)Except in Tamil Nadu
    (d)Except in Karnataka

MCQ Quiz on Accounting for Construction Contract

Read More

MCQ Quiz on Liquidation of Company No.1 Free MCQ

Free MCQ Quiz on Absorption of Company for 2022 exam

Holding Company Account MCQ Quiz 1 Free

Study Notes for Accounting

UGC NET SET MCQ

Leave a Reply

Your email address will not be published.