Quiz: How Much Do You Know About Fortna Software?

20 Questions | Total Attempts: 87

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Questions and Answers
  • 1. 
    On what basis does Fortna record its accounting records
    • A. 

      Cash Basis

    • B. 

      Accrual Basis

    • C. 

      Back of the Envelope

    • D. 

      Clay Tablet

  • 2. 
    When a contract is signed by both parties, what following phrase is most accurate:
    • A. 

      The client is billed immediately for retention milestone The client is billed immediately for retention milestone

    • B. 

      Revenue is picked up equal to the down payment

    • C. 

      The Sale is considered "booked"

    • D. 

      Shared Savings are determined and reimbursed to the client.

  • 3. 
    Fortna has been awarded a project for a NTE $1.2M with the following terms - billable bi-weekly at Time and Expenses.  This is an example of what type of contract?
    • A. 

      Fixed Price contract

    • B. 

      Support contract

    • C. 

      Installation contract

    • D. 

      Time and Expense contract

  • 4. 
    Fortna's Standard Cost rates include which of the following?
    • A. 

      Direct Cost and Indirect Cost divided by 2080 hours

    • B. 

      Direct Cost divided by expected billable hours

    • C. 

      Direct Cost and Indirect Cost divided by expected billable hours

    • D. 

      Direct Cost, Indirect Cost and SG&A divided by expected billable hours.

  • 5. 
    What is the most accurate description of the goal for the Fortna Standard Cost process?
    • A. 

      To have a net zero cost for a department at the end of the year.

    • B. 

      To properly bill the client for services rendered.

    • C. 

      To properly charge to projects all subcontract costs.

    • D. 

      To ensure that all categories of employees are charged using the same cost rate.

  • 6. 
    Which of the following statements is most accurate related to Nonchargeable Hours?
    • A. 

      The employee receives 1/2 credit on utilization for hours charged.

    • B. 

      The client is charged for these hours and the employee does not receive utilization credit.

    • C. 

      The client is not charged but the project is charged for the cost.

    • D. 

      The client is not charged for these hours; project not charged for the cost.

  • 7. 
    On MHS projects, cash flow should:
    • A. 

      Should always be considered when negotiating a new contract.

    • B. 

      Should always be cumulatively negative.

    • C. 

      Should be considered when calculating monthly actual revenue

    • D. 

      Should equal zero by the end of the project.

  • 8. 
    Fortna's Business Model calls for a target of:
    • A. 

      Revenue and gross profit growth equal to 30% annually

    • B. 

      Operating profit equal to 35% of gross profit

    • C. 

      Delivery department expenses to equal 25% of revenues.

    • D. 

      Gross profit to be 25% of revenues

  • 9. 
    The purpose of the Income Statement is:
    • A. 

      To present a point-in-time report of the company's financial condition

    • B. 

      To identify company performance on a cash basis

    • C. 

      Provide a summary of a company's financial transactions.

    • D. 

      Reflect a particular project's performance.

  • 10. 
    Which is the most accurate statement about the Quick Ratio?
    • A. 

      Used to quickly determine if a project's cash flow is positive.

    • B. 

      Is a statistic used to determine a company's ability to meet short-term obligations

    • C. 

      Is based on information found in the Income Statement.

    • D. 

      Is a statistic used to determine a company's ability to meet long-term obligations

  • 11. 
    Which following statement is most accurate about fixed price contracts?
    • A. 

      A detailed estimate of total direct costs is developed by the Estimating Dept.

    • B. 

      Billing and Revenue occur at the same time.

    • C. 

      The Estimating Department does not routinely obtain supplier quotes for high cost components.

    • D. 

      Revenue is recognized equally each month over the life of the project.

  • 12. 
    Which if the following statement about Fortna Cash Management is accurate?
    • A. 

      Fortna maintains less than 50% of annual net income in the firm.

    • B. 

      Consulting projects are normally cash neutral.

    • C. 

      The Burn Rate of cash is used in developing a cash flow projection.

    • D. 

      Billings need to be prompt and collections need to be monitored.

  • 13. 
    When Invoices are paid by the client, they are said to be:
    • A. 

      Billed

    • B. 

      Retained

    • C. 

      Recognized

    • D. 

      Collected

  • 14. 
    On a Time and Expense project:
    • A. 

      Travel Expenses are billed at Fortna's actual cost.

    • B. 

      Travel Expenses are billed at Fortna's standard rate.

    • C. 

      A contract never includes a cap.

    • D. 

      Revenue is "recognized" at cost.

  • 15. 
    Billable hours are:
    • A. 

      Charged to the client, not charged to the project, employee receives utilization credit

    • B. 

      Not charged to the client, charged to the project, employee receives no utilization credit

    • C. 

      Charged to the client, charged to the project, employee receives no utilization credit

    • D. 

      Charged to the client, charged to the project, employee receives utilization credit

  • 16. 
    On consulting projects, Fortna's policy is to discourage monthly billing.
    • A. 

      True

    • B. 

      False

  • 17. 
    Company level forecasts are useful in tracking historical performance.
    • A. 

      True

    • B. 

      False

  • 18. 
    Experience tells us:
    • A. 

      Our industry leads the economic indicators.

    • B. 

      Our industry lags the economic indicators.

    • C. 

      Our industry determines the economic indicators.

    • D. 

      Our industry does not need to consider economic indicators.

  • 19. 
    Fortna's services work consumes cash during periods of growth.
    • A. 

      True

    • B. 

      False

  • 20. 
    Project variances are useful to:
    • A. 

      Understand the differences between budgets and actual performance.

    • B. 

      Determine the resources charged to a project.

    • C. 

      Track each project by cost category.

    • D. 

      Calculate standard rates.

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