#33-36

SSAY. Write your answer on a separate sheet of paper. 33) Compare and contrast renting space for the general office to purchasing the space without a loan. 34) Why do highway contractors have a lower current assets to total assets ratio that other classes of contractors? 35) Why do many construction companies rely heavily on subcontractors to perform work on projects? 36) Define committed costs and provide one example from the book. 37) When calculating financial ratios for the year, when would the monthly averages be used instead of using the average of the beginning and end of the year? 38) What is the purpose of the equipment costs charged to employee's account? 39) A company, using the percentage-of-completion accounting method, bills a client $50,000 for the current month's work. The client withholds 5% retention. How much does the company record as profit when the bill is entered into the accounting system? 40) How are financial statements analyzed? 41) A company is buying a large number of nails that will be used on multiple jobs throughout the year. How should the nails be handled in the accounting system? 42) Why should a company track unbilled committed costs? 43) How should the estimated cost to complete be prepared? 44) What is the salvage value? 45) What does the accounts payable to revenues ratio measure? 46) How do construction companies deal with fluctuations in demand? How does this compare with howmanufacturers deal with fluctuations in demand? 47) What does the degree of fixed assets newness measure? 48) What does months in backlog measure? 49) Define costs and profits in excess of billings. 50) Define general overhead. 4 SSAY. Write your answer on a separate sheet of paper. 33) Compare and contrast renting space for the general office to purchasing the space without a loan. 34) Why do highway contractors have a lower current assets to total assets ratio that other classes of contractors? 35) Why do many construction companies rely heavily on subcontractors to perform work on projects? 36) Define committed costs and provide one example from the book. 37) When calculating financial ratios for the year, when would the monthly averages be used instead of using the average of the beginning and end of the year? 38) What is the purpose of the equipment costs charged to employee's account? 39) A company, using the percentage-of-completion accounting method, bills a client $50,000 for the current month's work. The client withholds 5% retention. How much does the company record as profit when the bill is entered into the accounting system? 40) How are financial statements analyzed? 41) A company is buying a large number of nails that will be used on multiple jobs throughout the year. How should the nails be handled in the accounting system? 42) Why should a company track unbilled committed costs? 43) How should the estimated cost to complete be prepared? 44) What is the salvage value? 45) What does the accounts payable to revenues ratio measure? 46) How do construction companies deal with fluctuations in demand? How does this compare with howmanufacturers deal with fluctuations in demand? 47) What does the degree of fixed assets newness measure? 48) What does months in backlog measure? 49) Define costs and profits in excess of billings. 50) Define general overhead. 4