Quiz: How Much Do You Know About Fortna Software?
- 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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