Construction Accounting

Upon successful completion of this course, participants will be able to:

• Recognize the types of bonds that a contractor may be required to post.
• Cite the different types of clauses that may be added to a construction contract.
• Specify the various causes of contract claims.
• Specify the types of financial difficulties to which the construction industry is subjected.
• Identify the different types of ledgers used by a construction company.
• Specify the components of a work breakdown structure.
• Recognize the types of accounts most likely to be designated as control accounts by a contractor.
• Recognize the linkage between contracts and revenue recognition.
• State the criteria for the existence of a contract.
• Specify the methods used to determine the price of a contract.
• Cite the criteria used to identify contract fulfillment costs.
• Recognize the different methods used to calculate the percentage of completion.
• Identify the situations in which the completed contract method should be used.
• Describe the circumstances under which the recovery of funds from a change order is probable.
• Specify the proper accounting for pre-contract costs.
• Describe the normal account balances for the various account types.
• Recognize when the straight-line rent concept should be applied.
• Recognize the uses to which the accounting equation is put.
• Identify the linkage between the balance sheet and the income statement.
• Identify the impact of a long operating cycle.
• Cite the circumstances under which the useful life concept is employed.
• Specify the significance of the mid-month convention.
• Identify the depreciation calculations for all depreciation methods.
• Recognize the accounting for the disposition of a fixed asset.
• Specify the methods available for giving meaning to a supplier identification number.
• Recognize the purpose of the different copies of the Form 1099-MISC.
• Specify the purpose of the more important boxes listed on the Form 1099-MISC.
• Recognize the reasons for loan balance differences in the records of the lender and borrower.
• Cite the rule used for determining the amount of a loss contingency accrual.
• Specify the proper disclosure for the different types of contingent losses.
• Specify the uses for the lessee of a lease arrangement.
• Recognize the lease rules related to short-term lease arrangements.
• Describe the usage of the Form W-4.
• Identify the calculation used for the hourly rate plan.
• Specify how the wage bracket method is used.
• Recognize the payment schedules for the different types of tax deposits.
• Identify the tax calculation for the FUTA tax.
• Recognize how the equity method is calculated.
• Identify the situations in which a change log can be most profitably used.
• Recall the primary purpose of a job cost sheet.
• Recognize the contents of a construction-in-progress report.
• Recognize the controls that apply to fixed fee and cost plus contracts.
• Cite the components of earned value management.
• Describe the calculation of the cost performance index.
• Specify the advantages and disadvantages of the various types of organizational structures, as well as the requirements for the formation of each one.