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Construction Financial Management MCQ

1. What is the purpose of a contingency fund in budgets?

Answer

Correct Answer: To meet unforeseen circumstances

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2. What type of budget is a Capital Budget?

Answer

Correct Answer: A spending plan for improvements to or acquisition of land, facilities, and infrastructure.

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3. What is CalTRUST?

Answer

Correct Answer: A joint powers authority created by public agencies

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4. In the Accrual Basis Accounting, when do expenses need to be recognized?

Answer

Correct Answer: When the commitment to pay is made

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5. When is revenue recognized under the Accrual Basis Accounting Method?

Answer

Correct Answer: When it is payable

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