1. Financial, tax, and job cost accounting are all required for construction companies and projects. True or False
2. Financial accounting is started first, then tax and job cost accounting True or False
3. Financial accounting must follow established rules and formats. In the United States, GAAP rules are followed, but in other countries, other systems such IFRS are followed, which can complicate accounting for international construction projects True or False
4. The employer must pay many additional costs (burdens) for each hour of employee wages. The question “what does a worker cost per hour” can be precisely calculated each week True or False
5. “Real-time” hourly labor costs based on carefully calculated estimates are used for job costing and for established labor rates in time and material contracts
True or False
6. Tax accounting uses the financial accounting format and timing without alteration to calculate taxes due True or False
7. Fixed assets (property, plant, and equipment) are valued at acquisition cost less accumulated depreciation. Only assets with a useful life of 1 year or more appear on the balance sheet True or False
8. Income and taxes are hard facts that cannot be influenced or altered by management’s opinions True or False
9. The balance sheet states the position of a construction firm at a point in time and the income statement states the impact of transactions for a period of time
True or False
10. The schedule of administrative overhead identifies fixed costs that must be paid every year—even if no projects are performed. The profit realized from construction projects must exceed the administrative overhead before the firm will realize a profit for the year. True or False