The following is a detailed outline of the eight exam content areas that appear on this 200 multiple choice exam, with an indication of the approximate percentage of the construction finance exam devoted to each area:
ACCOUNTING AND REPORTING (23%)
- Accounting standards and guidelines
- Basic methods of accounting
- Receivables
- Leases
- Costs in excess and billings in excess
- Construction equipment
- Subcontractor payables
- Independent construction audit
- Financial statements
- Project management
- Gross profit analysis
REVENUE RECOGNITION METHODS (21%)
- Financial reporting
- Percentage-of-completion accounting method
- Contract revenues, change orders, and claims
- Contract costs
- Accounting for the effects of change in estimates
BUDGETING AND PLANNING (14%)
- Strategic planning
- Strategic cost management
- Capital budgeting
- Cash management
- Benchmarking
- Succession Planning
RISK MANAGEMENT (13%)
- Risk management responsibilities
- Construction-related insurance
- Surety
TAXES (6%)
- Accounting methods unique to the construction industry
- Tax filing
HUMAN RESOURCES (7%)
- Compensation
- Employee benefit plans
- Accounting/finance department administration
- Labor and ERISA laws
LEGAL (9%)
- Preparation and review of contracts
- Subcontracts and purchase orders
- Applicable laws
- Warranties
- Alternatives to litigation
INFORMATION TECHNOLOGY (7%)
- Construction management platforms
- Evaluation, implementation, selection, and integration methods
- Cybersecurity