Identify whether each of the following would be reported as an operating investing or financing activity in the

statement of cash flows

1. Purchase of patent
2. Payment of cash individual
3. Disposal of equipment
4. Cash sales
5. Purchase oftreasury stock
6. Payment of wages expense
Answers
1. Investing
2. Financing
3. Investing
4. Operating
5. Financing
6. Operating
2.) It' sinclude any expenses incurred during the startup or formation of a new business
Answer:
Pre Operating Costs
3.) Give atleast 3 example of Pre Operating Expenses
Recruitment and training of staff before opening
Answers
Market research
o Site visits
o Regulatory expenses (e.g. permits licenses)
o Administrative expenses (e. g. office rental, stationery)
•Tuition for training programs seminars and other educational services

Minor, pre opening repair work on buildings for rent

1. ) It Is the financial transaction in which an entity or person lendsto another a fixed amount of money at the
beginning of the transaction. - (Loan)
2. ). short-term loan used to finance the building of a home or another real estate project. -(construction loan)
1. ) This type of loan offer contractors a way to get cash to pay for their materials, so they don't have to front
money on a project. - (Building material loans)
2. Give 2 examples option of contractor can
(credit cards and business loans)
8.) It is defined as the funds invested by the owners to expand their business and improve its. productivity: (Ans
CARITAL INVESTMENT)
1. ) It is the type of capital investment that requires the evaluation of proposals It is done to diversify new
product lines and new markets (Ans. DIVERSRCATION)
2. ) direct labor times multiplier it is very similar to the salary cost times multiplier with exception that It applies
a single multiplier to unburdened direct labor cost.
3. ) Direct Non-salary expenses- it is a separate item for reimbursement usually with a service charge.
4. ) Salary cost. - it is defined as direct salaries plus employee benefits" and includes salaries for partners or
principal and for technical, professional, administrative and clerical staff directly?
5. ) Multiplier - It is applied to salary cost is a factor that compensates the divil engineer for overhead ( as
defined hereinafter) plus a reasonable margin for contingencies interest or invested capital readiness to
serve and profit?
6. ) It is the sum of money to be
addedtothe direct construction cost and reimbursed to thedeveloper for the use of the developer's monies during the
construction term - (Interest Payment)
15.) Construction interest expense is also called _ - (capitalized
Interest)
16.) Cash receipts can be presented as a?
•proof
17.Cash receipts are printed documents that are issued when? - Cash is received for a specific service or good

Financial controls - are methods, rules, and procedures used to manage finances. They contribute to an
organization's financial accountability and due diligence. Controls can be established via accountabilities,
responsibilities, and automation.
Give 3-5 instances of financial controls:
o Accounting Standards
o Financial Statements
o Operating Metrics
o Policies
o Segregation of Duties
o Reconciliation
o Responsibilities
o Approvals
o Disbursement Policies
o Audit Trail
o Information Security

How to properly construct financial control

Improve operational efficiency.
Enhance profitability.
Simplify resource management
Improve accountability and engagement at all levels.
Streamline the reporting and auditing processes.
These types of auditors are used when an organization doesn't have the in-house resources to audit certain parts of
their own operations.
-Consultant Auditors
It shows a company's revenues, expenses and profitability over a period of time.
 Income Statement
It is a proportional analysis of a financial statement in which each line item is listed as a percentage of another item.
 Answer: Vertical Analysis

Questions
1.) This method is where you count everything that is required that comes at a unit price?
-Unit Pricing Method
2.)
means the cost of rented or owned equipment, including cost of loading,
transportation, unloading, erection, maintenance, dismantling and removal.
-Construction Equipment Cost
3.)
takeoff.
-Material estimate
is also known as a quantity takeoff, a construction takeoff or a material
4.)
_ represents the decline in market value of a piece of equipment due to
age, wear, deterioration, and obsolescence.
- Depreciation
5.).
is the simplest to understand as it makes the basic assumption that the
equipment will lose the same amount of value every year of its useful life until it reaches its salvage value.
- Straight-Line Depreciation
6.)
are the costs incurred only when the equipment is used.
- Operating Costs
7.) It is the amount to be paid to any subcontractor hired by the contractor for the principal purpose of obtaining the
auditing services under this agreement.
- Subcontract cost
8.) Calculation method of subcontracting cost where, the cost is calculated by multiplying the end item quantity by the
subtracting rate.
- Fixed amount by product
9.) The
is calculated by multiplying the end quantity display by the
subcontracting rate factor and the subcontracting rate.
-Operation rate
10. Are plant operating costs that are not direct labor or direct material costs.
- Project Overhead Cost
11.) The costs of a project that a company incurs indirectly, also known as
-Indirect cost
12.) Give 2 example of Project Overhead Cost
 Direct labor costs
 Direct labor hours
 Direct materials costs
 The sum of direct labor and
 Material costs
13) what is BQM?
BILL OF QUANTITIES
14) PURPOSES OF BILL OF QUANTITIES.
To make the tendering process more uniform
 For establishing a method for valuing the project that is both transparent and exact.
 To provide a thorough description of the work and its rates, as well as the overall cost.
To help quantity surveyors in ensuring that individual contractors have filed valld tenders that comply with the
specifications.
15.) How to prepare bill of quantities?
Description of work
 Quantity take-off
 Rates per unit of work

1. What are the manufacturing plans prepared upon release of the subdivided work descriptions are used for?
Answer: to prepare tool lists for manufacturing, gunlity assurance, and engineering (Mine jojowain si April
Joy)
2. In conducting a construction project, a proper project scheduling can save what?
Answer: Time and money (Mine uno)
3. BOM stands for?
Answer: Bill of Materials (Mine Kopiko brown)
4. Who are in charge in preparing details, resource plans, development of accuracy, cost planning, cost
estimation, cost budgeting, cost control, and cost analysis?
Answer: Quantity Surveyors (Mine Engineer)
5. What is the first step in project scheduling sequence flowchart?
Answer: Signed Contract (Mine PCS 1)
6. What are the three estimates in cost overruns that if it exceeded, it can result in project delays on top of the
increased total cost of the build?
Answer: Labor, material, and overhead costs (Mine Square root of 144)
7. What is the third step in the flowchart of material cost scheduling?
Answer: Subdivided work description or Work planning authorization (Mine Reduction factor)