Business and Law 8th Edition
What is the quick ratio (sometimes referred to the acid test ratio) for the following: Current assets $ 80,000 Fixed assets $ 112,000 Inventory $ 12,000 Current liabilities $ 30,000 Long term liabilities $ 86,000 Net income $ 57,000
1 - 2.27
How many days do you have to notify the licensing board if your business is changing names? 1 - 30 Days 2 - 45 Days 3 - 60 Days 4 - 90 Days
1 - 30 Days
A company changing its address should report the address change to the NC Licensing Board in how many days? 1 - 30 days 2 - 60 days 3 - 90 days 4 - 120 days
1 - 30 days
If a 941-tax payment of $ 500.00 is submitted 10 days late, what is the penalty? 1 - 5 percent 2 - 10 percent 3 - 15 percent 4 - 25 percent
1 - 5 percent
What is the current Social Security rate? 1 - 6.20 % 2 - 1.45 % 3 - 7.65 % 4 - 6.84 %
1 - 6.20 %
When choosing a CPA to do your accounting work, which of the below should be considered? 1 - A CPA that uses generally accepted accounting practices 2 - The one that charges the lest to help get your business started 3 - The closest one for easier convenience 4 - One that has the lest training in audited financials
1 - A CPA that uses generally accepted accounting practices
One of the main reasons that a construction contract could be voided or terminated is: 1 - A material breach occurs when a party refuses to perform the contract 2 - A project has been substantially completed 3 - The contract between the parties has been lost 4 - None of the above
1 - A material breach occurs when a party refuses to perform the contract
The ADA (Americans with Disabilities Act) applies to persons who have impairments such as: 1 - Aids 2 - Broken limbs 3 - Flu 4 - Non-chronic conditions
1 - Aids
Anne Johnson has a contractor's license in the name of Anne Johnson Construction, Inc. Which of the below names is she allowed to work under as a general contractor? 1 - Anne Johnson Construction, Inc. 2 - Anna Johnson Home Improvements 3 - Anna Johnson Building 4 - Anna Johnson DBA Johnson Home Improvements
1 - Anne Johnson Construction, Inc.
Which of the following is an advantage of a Subchapter S - Corporation form of business? 1 - Avoidance of double taxation 2 - Limitations on corporate activities 3 - Extensive regulation 4 - Limited life of business
1 - Avoidance of double taxation
Which of the following is an advantage of a Sole Proprietorship? 1 - Business owner makes all decisions 2 - Protects personal property from business liability 3 - It conducts business as a separate legal entity 4 - Unlimited personal liability
1 - Business owner makes all decisions
Which of the following scheduling methods would be the easiest to read? 1 - Calendar method 2 - Bar chart method 3 - CPM (Critical Path Method) 4 - Neither of above
1 - Calendar method
Which of the below can a company use withholding taxes for before paid to government? 1 - Can't spend or use for anything 2 - Can use in case of emergency 3 - Can use to operate the business 4 - Can use for improvements
1 - Can't spend or use for anything
Which accounting method is the best way to keep up with gross profits? 1 - Cash 2 - Accrual 3 - Cost accounting 4 - Contract accounting
1 - Cash
This schedule should show the contractor is prepared to show working capital at anytime? 1 - Cash flow schedule 2 - Bar chart schedule 3 - Calendar schedule 4 - Cost comparison schedule
1 - Cash flow schedule
Which form would you use to obtain all of the federal tax withholding for an employee? 1 - Circular E: Employers Tax Guide 2 - Form 940 3 - Form 941 4 - Form W-2
1 - Circular E: Employers Tax Guide
You have an office trailer on a construction project that has been used on multiple projects, which of the below would it be listed on? 1 - Company overhead 2 - Job overhead 3 - Long term liability 4 - Short term liability
1 - Company overhead
The following business type must pay state income tax: 1 - Corporation 2 - Sole proprietorship 3 - Partnership 4 - All of the above
1 - Corporation
A contract offer made after having modified the original offer is called what? 1 - Counter offer 2 - Negotiation 3 - Binding offer 4 - Consideration
1 - Counter offer
What is a disadvantage of an oral contract versus a written one? 1 - Difficult to prove 2 - Easier to expedite 3 - Uncomplicated 4 - No risk
1 - Difficult to prove
What is the definition of Negotiation? 1 - Diplomatic bargaining 2 - Change order 3 - Communicating with customers 4 - Contract acceptance
1 - Diplomatic bargaining
Where will John's wages fall on the company's income statement? 1 - Direct Cost 2 - Project overhead 3 - General administrative expense 4 - None of the above
1 - Direct Cost
When figuring the labor cost equation, which of the below should be figured in? 1 - Extra hours spent on planning and scheduling 2 - Labor rate 3 - Equipment costs 4 - Profit on the bottom line
1 - Extra hours spent on planning and scheduling
Who is the Miller Act enacted for? 1 - Federal project bonding 2 - Subcontractors 3 - General Contractors 4 - Architects and Engineers
1 - Federal project bonding
What is the best definition of a bid bond? 1 - Guarantees if the contractor is awarded the job, will do work at submitted price 2 - Guarantees that the contractor will complete the contract 3 - Guarantees that all subcontractors and suppliers will be paid 4 - Guarantees the work for a one-year period
1 - Guarantees if the contractor is awarded the job, will do work at submitted price
How can you help avoid material being stolen on a jobsite? 1 - Have less inventory on site 2 - Fence around 3 - Pile heavy items on top 4 - Schedule large deliveries
1 - Have less inventory on site
When estimating work, lower markup can result in: 1 - Insufficient cushion for excessive costs 2 - Excessive work load 3 - Sufficient cushion to weather hard times 4 - Should be common practice
1 - Insufficient cushion for excessive costs
LLC corporations are like an S corporation; how are federal income taxes are paid? 1 - It is distributed to members as ordinary income 2 - Only taxed on income more than $ 20,000 business 3 - Personal and business taxes are calculated 4 - LLC's are a disadvantage in taxation
1 - It is distributed to members as ordinary income
If an owner wishes to sign a contract with a contractor that relieves the owner of any and all responsibilities, what type of contract is this? 1 - Lump sum 2 - Unit price 3 - Cost plus 4 - Have insurance agent review
1 - Lump sum
If you accumulate a tax liability of $100,000 or more, you must make your deposit by: 1 - Next banking day 2 - Three banking days 3 - 15th of same month 4 - 15th of following month
1 - Next banking day
Why is it important to fully understand a contract? 1 - Prevent disputes 2 - Negotiation purposes 3 - Legal capacity 4 - Getting paid
1 - Prevent disputes
What is a fixed asset? 1 - Property and equipment 2 - Stock 3 - Jobsite materials 4 - Cash
1 - Property and equipment
Where are the Material Safety Data Sheets (MSDS) originated from? 1 - Provided by the manufacturer of the chemical 2 - Provided by the contactor 3 - Provided by the architect 4 - Provided by the contract documents
1 - Provided by the manufacturer of the chemical
What is the most accurate estimating method? 1 - Quantity take-off method 2 - Unit price method 3 - Conceptual method 4 - Square foot method
1 - Quantity take-off method
On a CPM (Critical Path Method) schedule, what is the definition of "float time"? 1 - Remaining time after a task is completed until the next task begins 2 - Weather delay tasks not completed 3 - Tasks performed with limited access 4 - Delays in delivery of materials
1 - Remaining time after a task is completed until the next task begins
What is the terminology used for money withheld from monthly payments to a general contractor or subcontractor until after completion of a project? 1 - Retainage 2 - Monthly pay requests 3 - Withdraws 4 - None of the above
1 - Retainage
Which of the below would not show up on a balance sheet? 1 - Revenue 2 - Liabilities 3 - Assets 4 - Owners equity
1 - Revenue
Which of the below would a contractor on a construction site contribute to become more susceptible to water pollution? 1 - Sedimentation 2 - Solid waste 3 - Asbestos 4 - Oil and grease
1 - Sedimentation
A worker works 5 days at 8 hours per day per week under the FLSA. During the 30-minute lunch break, they are required to answer the phone. Which of the below is true? 1 - Should be paid extra 2.5 hours overtime 2 - Should be paid only 2.5 hours regular time 3 - Only required to receive 1.5 hours of regular time 4 - Receives no additional time paid under FLSA
1 - Should be paid extra 2.5 hours overtime
When you have a broken line on a CPM (Critical Path Method) schedule between two tasks, this broken line represents _____time between the two activities. 1 - Slack or float 2 - Total 3 - Activity 4 - Duration
1 - Slack or float
Which project document gives specific details to determine the type of materials or methods used in construction? 1 - Specifications or supplemental conditions 2 - Construction drawings 3 - Architectural drawings 4 - Job plans
1 - Specifications or supplemental conditions
What does the letter "i" on a CPM (Critical Path Method) Schedule indicate? 1 - Start of an activity 2 - End of an activity 3 - Duration of an activity 4 - Amount of float time
1 - Start of an activity
When determining estimating costs framework, where is the group labor activities placed? 1 - Task 2 - Equipment 3 - Labor rate 4 - Labor hours
1 - Task
All of the following are considered parts of a source document except: 1 - Tax returns 2 - Cash receipts 3 - Purchase orders 4 - Time cards
1 - Tax returns
Which of the following would be considered project overhead? 1 - Temporary office 2 - Office rent 3 - Taxes 4 - Telephone
1 - Temporary office
A General Contractor with a CGL (Commercial General Liability) insurance policy of $ 1,000 and a $ 500 deductible intentionally violates a code. During an inspection, the violation causes the owner $ 1,000 in damages. Which statement below is correct? 1 - The GC is responsible for the $ 1,000 2 - The owner is responsible for the $ 1,000 3 - The insurance company is responsible for $ 500 and the GC $ 500 4 - The insurance company is responsible for $ 500 and the owner $ 500
1 - The GC is responsible for the $ 1,000
A contractor installs a $1000.00 heat system and deliberately doesn't install it properly. He has General Liability Insurance coverage with a $500.00 deductible with no riders. Which of the below is true? 1 - The contractor is liable for the $1000.00 2 - The contractor pays the deductible and the insurance company pays $500.00 3 - The Insurance Company is completely liable. 4 - The owner pays the $1000.00
1 - The contractor is liable for the $1000.00
When are Federal Unemployment Taxes (FUTA) due? 1 - The last day of next month following the ending quarter 2 - The middle of the next month following the ending quarter 3 - The beginning of the next month following the ending quarter 4 - The last day of the ending quarter
1 - The last day of next month following the ending quarter
When do you file a 940-tax form? 1 - The last day of the month following the ending quarter 2 - The last day of the month of the ending quarter 3 - The 15th day of the month following the ending quarter 4 - The next business day following the ending quarter
1 - The last day of the month following the ending quarter
If there is ambiguous language in the contract that can not be clarified, then the interpretation of the contract would go against: 1 - The party who wrote the contract 2 - The party the contract was sent to 3 - Both parties 4 - Neither party
1 - The party who wrote the contract
A scheduling bar chart shows: 1 - Time line relationship 2 - Critical path 3 - Relationship between tasks 4 - Simultaneous events
1 - Time line relationship
How can you keep un-expected costs of materials down on a project? 1 - Timely delivery schedule 2 - Purchase cheap material 3 - Wait on purchasing until market is reasonable 4 - None of the above
1 - Timely delivery schedule
When an employee is voluntary or involuntarily terminated, when shall their wages be paid in full? 1 - Within 48 hours or next regular payday 2 - The next day 3 - End of the month 4 - Not to exceed 20 days
1 - Within 48 hours or next regular payday
A contractor uses the accrual method of accounting. He has a $6,000 billing for May, a $5,000 billing for June. He receives $3,000 in June payments and pays his total bills of $1,000 in May and total bills of $3,000 in June. What is his profit for June? 1 - $ 1,000.00 2 - $ 2,000.00 3 - $ 3,000.00 4 - $ 4,000.00
2 - $ 2,000.00
A contractor uses the accrual method of accounting. He has a $6,000 billing for May, a $10,000 billing for June. He receives $6,000 in June payments and pays his total bills of $1,000 in May and total bills of $5,000 in June. What is his profit for June? 1 - $ 4,000 2 - $ 5,000 3 - $ 10,000 4 - $ 11,000
2 - $ 5,000
John Smith, an employee of your firm, is paid on a two week pay period, has worked the following schedule: A) Week 1 - Monday - Friday (8 hours each day) and 4 hours on Saturday B) Week 2 - Monday - Wednesday (8 hours each day) Thursday worked half a day then went home with 4 hrs sick pay and Friday is a paid holiday. What is John's gross pay for this pay period if he is making $18.40 per hour? 1 - $1,545.60 2 - $1,582.40 3 - $1,562.80 4 - None of the above
2 - $1,582.40
What is the percentage withheld for Medicare tax? 1 - 6.20 2 - 1.45 3 - 6.84 4 - 6.22
2 - 1.45
How long does employer have to give the employee for family medical leave? 1 - 10 weeks 2 - 12 weeks 3 - 14 weeks 4 - 16 weeks
2 - 12 weeks
How many days do you have to complete legal action in order to enforce a lien? 1 - 120 days 2 - 180 days 3 - 220 days 4 - 240 days
2 - 180 days
What is the quick ratio of a company with total assets of $ 150,000, liabilities of $ 35,000 and an inventory of equipment of $ 52,000? 1 - 1.4 2 - 2.8 3 - 3.2 4 - 4.1
2 - 2.8
How many days does a business have to report a new hire? 1 - 3 Days 2 - 20 Days 3 - 30 Days 4 - 2 Weeks
2 - 20 Days
According to the FLSA (Fair Labor Standards Act) which of the below would be classified as a laborer? term-93 1 - A skilled worker 2 - An unskilled worker 3 - A nonexempt employee 4 - An exempt employee
2 - An unskilled worker
Who can submit a complaint against a contractor? 1 - Building inspector 2 - Anybody can submit a complaint 3 - Architect 4 - Owner
2 - Anybody can submit a complaint
What is the main difference between a Bar Graph and a CPM (Critical Path Method) schedule? 1 - Bar graphs are chronological based on major or key events 2 - CPM shows interaction with other events 3 - The CPM does not show interaction with other events 4 - A bar chart will show the independencies of the activities
2 - CPM shows interaction with other events
What type of contract is best between the owner and the construction manager? 1 - Design build method of construction 2 - Conceptual stage through final construction 3 - Single prime method 4 - Lump sum contract
2 - Conceptual stage through final construction
A construction project budget tracking is based on: 1 - Cash flow 2 - Cost estimate 3 - Schedule 4 - Quality assurance
2 - Cost estimate
Which of the following best describes working capital? 1 - Fixed assets minus fixed liabilities 2 - Current assets minus current liabilities 3 - Cash on hand 4 - Short term borrowed money
2 - Current assets minus current liabilities
A company has a pick up truck that will be paid off before year end, which category will this truck fall in? 1 - Owners equity 2 - Current liability 3 - Current asset 4 - Long term liability
2 - Current liability
When two partners are financially responsible for $ 30,000, what is true? 1 - Each partner is responsible for $ 15,000 2 - Each partner is responsible for $ 30,000 3 - The partner who is most involved 4 - The controlling partner with the most ownership
2 - Each partner is responsible for $ 30,000
What is a major advantage of a sole proprietorship ownership of a company? 1 - Unlimited personal liability 2 - Easier to sell 3 - Less capital 4 - Easier to obtain financing
2 - Easier to sell
What does the letter "j" on a CPM (Critical Path Method) Schedule indicate? 1 - Start of an activity 2 - End of an activity 3 - Duration of an activity 4 - Amount of float time
2 - End of an activity
Which of the following is considered to be part of company overhead? 1 - Storage facilities 2 - Expenses 3 - Bonds 4 - Dumpsters
2 - Expenses
The time located on a CPM (Critical Path Method) chart for a specific task to the task is known as: 1 - Total time 2 - Float time 3 - Start time 4 - Duration time
2 - Float time
What is the best method for determining job labor costs? 1 - Accurate accounting 2 - Historical data 3 - Detailed plans and specs 4 - Employees skill
2 - Historical data
If the contractor does not give the owner a written or verbal warranty, then the owner will be left with this type of warranty. 1 - One-year warranty 2 - Implied warranty 3 - 6-month warranty 4 - No warranty
2 - Implied warranty
How can you become more competitive in business? 1 - Lower estimates 2 - Improve safety 3 - Additional volume 4 - Less volume
2 - Improve safety
What is more likely to be included in company or general overhead? 1 - Storage facilities 2 - Insurance 3 - Bonds 4 - Dumpsters
2 - Insurance
What happens if the owner chooses construction items that exceeds the allowances put in contract for items by contractor? 1 - Contractor has to absorb the cost 2 - Issue a change order and owner will pay 3 - Work is stopped 4 - Owner will absorb only half of the cost
2 - Issue a change order and owner will pay
What is the best method to accurately estimate costs of labor for a job? 1 - Use of detailed plans and specs 2 - Job cost history 3 - Employee skill level 4 - Size of crew
2 - Job cost history
If Federal Unemployment tax wage period ends on Saturday June 30th, when is your tax deposit to the government due? 1 - July 15th 2 - July 31st 3 - October 15th 4 - October 31st
2 - July 31st
A company's debt ratio is .50, which of the below best describes the company's financial position? 1 - Close to bankruptcy 2 - Just hobbling along 3 - Can weather downturns in the economy 4 - Could undertake a large project
2 - Just hobbling along
An employee is injured covered under workman's compensation, which of the below injury would amount to the longest 2/3 weekly compensation for the employee? 1 - Loss of an eye 2 - Loss of an arm 3 - Loss of a leg 4 - Loss of hearing
2 - Loss of an arm
The Fair Labor Standards Act (FLSA) provides that a federal minimum wage of not less than $ 7.25 per hour be paid. What group of people can this minimum be paid less than the federal minimum? 1 - Office workers 2 - Minors under the age of 20 3 - Factory workers 4 - Truck drivers
2 - Minors under the age of 20
How often does a bank statement need reconciling or balancing? 1 - Weekly 2 - Monthly 3 - Bi-monthly 4 - Quarterly
2 - Monthly
Which of the below is true about a partnership? 1 - Must be a partnership to get partnership insurance 2 - Must obtain a federal tax identification number 3 - Partners are not liable for the other partner's actions 4 - The partners should have the same bank account
2 - Must obtain a federal tax identification number
What is the best information tool to determine labor cost for each task? 1 - From the estimate 2 - Previous jobs 3 - Field experience 4 - Seasonal
2 - Previous jobs
A contract must be written if it pertains to: 1 - Financing 2 - Real estate or land 3 - Two party agreements 4 - Paid for by cash
2 - Real estate or land
What is a percentage of completion method of accounting? 1 - Relies upon a good estimate 2 - Recognizes income as it is earned 3 - Income or loss is reported in the year the contract is completed 4 - Only used by small companies
2 - Recognizes income as it is earned
If a dozer is purchased for $ 10,000 and it is depreciated for 5 years and the salvage cost is $ 4,000.00, what would be the best option for the company? 1 - Rent the equipment 2 - Save money by purchasing 3 - Lease with option to buy 4 - Depreciate only
2 - Save money by purchasing
Which of the below is guaranteed payment when a payment bond is required? 1 - Contractor will perform work for a price 2 - Subcontractors and suppliers 3 - Owner is guaranteed contractor will honor bid 4 - Owner is guaranteed work for one year
2 - Subcontractors and suppliers
A cost plus contract is typically used when: 1 - Depends on the number of units constructed 2 - The labor costs are not specified 3 - Allowances are used 4 - All of the costs are well defined
2 - The labor costs are not specified
If a qualifier leaves, which of the following is true? 1 - The license is cancelled immediately 2 - The license is good for 30 days maximum after qualifier leaves but licensee can re-take the exam to become licensed 3 - The license is good for 45 days maximum after qualifier leaves but licensee can re-take the exam to become licensed 4 - The license is good for 60 days maximum after qualifier leaves but licensee can re-take the exam to become licensed
2 - The license is good for 30 days maximum after qualifier leaves but licensee can re-take the exam to become licensed
A licensed general contractor agrees to pull a permit for an un-licensed contractor to build a project. The licensed contractor agrees to periodically supervise the project. Which of the below is true? 1 - This is legal because one contractor is licensed 2 - This is illegal and is subject to disciplinary action by the board 3 - Legal because the licensed contractor has agreed to be partially responsible 4 - Legal because he is responsible for pulling the permit
2 - This is illegal and is subject to disciplinary action by the board
A lump sum contract on a project is $ 200,000. The retainage withheld of this project is 10%. The contract is complete to 90% and has been paid. What is left owed on the project? 1 - $ 25,000 to $ 30,000 2 - $ 30,000 to $ 35,000 3 - $ 35,000 to $ 40,000 4 - None of the above
3 - $ 35,000 to $ 40,000
As a General Contractor you have a project superintendent that is paid $25.00 per hour and has worked 60 hours in a week. He is covered under the Fair Labor Standards Act (FLSA) as a nonexempt employee. He has worked 30 % on Project A and 50% on Project B. The remainder of his time was spent in the main office. How much of his salary should be applied to direct cost of supervision for Project B? 1 - $525.00 2 - $350.00 3 - $875.00 4 - $880.33
3 - $875.00
Determine the debt ratio if company assets are $100,000 and liabilities are $50,000. 1 - .20 2 - .40 3 - .50 4 - .60
3 - .50
What is the penalty for paying FUTA taxes 30 days late? 1 - 2 % 2 - 5 % 3 - 10 % 4 - Still in the grace period
3 - 10 %
What is the normal warranty period for a construction project? 1 - 3 months 2 - 6 months 3 - 12 months 4 - 24 months
3 - 12 months
How many bids are required on public bid jobs? 1 - 1 2 - 2 3 - 3 4 - 4
3 - 3
How many days does an employee have to notify OSHA when he finds they have been discriminated against by the employer for turning the employer in for a violation? 1 - 15 days 2 - 20 days 3 - 30 days 4 - 40 days
3 - 30 days
How long must all records for employment taxes kept? 1 - 2 years 2 - 3 years 3 - 4 years 4 - 5 years.
3 - 4 years
How long must OSHA records be kept by an employer? 1 - 3 years 2 - 4 years 3 - 5 years 4 - 6 years
3 - 5 years
What is the percent withheld for Social Security and Medicare (FICA) taxes? 1 - 6.20 % 2 - 1.45 % 3 - 7.65 % 4 - 6.84 %
3 - 7.65 %
Quarterly tax deposits may be made using Form _____ if the tax liability is less than $2,500. 1 - 1099 2 - 940 3 - 941 4 - W-2
3 - 941
Which of the below is an example of an indirect cost? 1 - Manager pay 2 - Office rent 3 - A superintendent's year end bonus 4 - Equipment rental
3 - A superintendent's year end bonus
When you involved in a partnership and one partner is responsible for a $30,000 debt, how much of that debt is the other partner responsible for? 1 - None of the debt 2 - Half of the debt or $15,000 3 - All of the debt or $30,000 4 - None of the above is correct
3 - All of the debt or $30,000
The North Carolina Employment Security Law says that all contractors are required to pay unemployment tax if: 1 - Have one or more employees for 20 weeks during a calendar year 2 - Pay $1,500 in wages in any calendar quarter during a calendar year 3 - Both 1 and 2 4 - Neither of the above
3 - Both 1 and 2
Which of the statements below is correct? 1 - Employees should receive a w-2 before January 31 from their employer 2 - Sub-contractors should receive a 1099 before January 31 from the general contractor 3 - Both 1 and 2 are true 4 - None of the above
3 - Both 1 and 2 are true
When are the annual 940 tax reports due to the government? 1 - End of each quarter 2 - January 15 3 - By January 31 4 - December 31
3 - By January 31
What is the disadvantage of the cash method accounting versus the accrual method of accounting? 1 - Cash method recognizes income when services occur 2 - Cash method records expenses as they occur 3 - Cash method does not match revenue with expenses incurred 4 - None of the above
3 - Cash method does not match revenue with expenses incurred
Materials on hand that are stored on a construction project would be listed on the balance sheet under which of the below? 1 - Long term liability 2 - Short term liability 3 - Current asset 4 - Fixed asset
3 - Current asset
The General Contractor pays a brick mason $ 1,500 for work he performed on a building. Since this amount was above the $600.00 allowed by law, the Contractor must give him which form: 1 - Form W-2 2 - Form 1040 3 - Form 1099 4 - Form 940
3 - Form 1099
The profit and loss statement is sometimes called: 1 - Gross profit 2 - Net income 3 - Income statement 4 - Working capital
3 - Income statement
An Osha official conducts an inspection on a jobsite and has authority to: 1 - Revoke the contractor's license 2 - Stop the work 3 - Issue a citation 4 - Issue a warning only
3 - Issue a citation
A company has $ 75,000 Current Assets, $ 120,000 Long term Assets, $ 50,000 Current Liabilities, $ 60,000 Long Term Liabilities. Based on this info what does it tell you about this company. (I believe this is a Liquidity Ratio question) 1 - It can do a large bonded project 2 - It can't meet its current obligations 3 - It can sustain its cash flow during a slow down 4 - The company is struggling financially
3 - It can sustain its cash flow during a slow down
When compensating an employee for and injury, which of the loss below would the insurance company be more liable for? 1 - Loss of an eye 2 - Loss of hearing 3 - Loss of an arm 4 - Loss of a leg
3 - Loss of an arm
If the owner is one day late making payment to a contractor and he walks off the job, which of the below is true? 1 - Right 2 - Legal 3 - Material breach (contractor has violated a contract condition) 4 - Immaterial breach
3 - Material breach (contractor has violated a contract condition)
A couple started ABC Construction Company doing business under an assumed name certificate commonly known as a DBA (doing business as), which of the below is true? 1 - Need life insurance 2 - Need to form an LLP 3 - Need to register business in each county 4 - None of the above are needed
3 - Need to register business in each county
There is a 50% partnership set up as an LLC doing business as (DBA). Which of the below is true? 1 - Need life insurance 2 - Need to form an LLP 3 - Need to register business in each county 4 - None of the above are needed
3 - Need to register business in each county
Which of the below is not a key element of a contract? 1 - Offer 2 - Acceptance 3 - Negotiations 4 - Consideration
3 - Negotiations
Which of the below would not be part of being considered mentally competent to enter into a contract? 1 - Age of the contractor 2 - Authority to enter into contract 3 - Net worth 4 - Being of sound mind
3 - Net worth
If you, an owner, want to be guaranteed that your project will be completed according to the plans, specifications, terms and conditions of the contract. What kind of bond would you need? 1 - Bid Bond 2 - Condition Bond 3 - Performance Bond 4 - Payment Bond
3 - Performance Bond
The income statement is sometimes called: 1 - Gross profit statement 2 - Owners equity statement 3 - Profit and loss statement 4 - Profit ability statement
3 - Profit and loss statement
What is the primary purpose for keeping and maintaining a daily log? 1 - Resolve disputes 2 - Safety 3 - Progress of a project 4 - Quality control
3 - Progress of a project
Employers must pay Federal Unemployment Tax on employees how often? 1 - Weekly 2 - Monthly 3 - Quarterly 4 - Every six months
3 - Quarterly
Which of the below would be an annual depreciation method for an item? 1 - Maintenance 2 - Operating 3 - Straight line 4 - Cash
3 - Straight line
A company must have how many employees before workers' compensation is required? 1 - One 2 - Two 3 - Three 4 - Four
3 - Three
The employer should get I-9 forms from employees within how many days of hire? 1 - The day of hire 2 - Two days 3 - Three days 4 - Ten days
3 - Three days
The late start time minus the early start time on a CPM (Critical Path Method) chart is called: 1 - Starting duration 2 - Total duration 3 - Total float 4 - Late start
3 - Total float
At what age would an employer be required to obtain employment certificate to work an employee? 1 - 21 and over 2 - Under 21 3 - Under 18 4 - 16 or over
3 - Under 18
Which of the following is not an advantage of a sole proprietorship? 1 - Simple ownership 2 - Low start-up costs 3 - Unlimited personal liability 4 - Sole ownership of profits
3 - Unlimited personal liability
When issuing or requesting a change order, it is required to be: 1 - Verbal 2 - Verbal or in writing 3 - Writing 4 - Just agreed upon
3 - Writing
The maximum OSHA fine is: 1 - $ 7,000 2 - $ 10,000 3 - $ 17,000 4 - $ 70,000
4 - $ 70,000
What is the maximum EPA fine per day for failure to comply with regulations concerning lead? 1 - $7,500 2 - $17, 500 3 - $25,000 4 - $37,500
4 - $37,500
How many employees are required before a written emergency action plan is needed? 1 - 8 2 - 9 3 - 10 4 - 11
4 - 11
A sub-contractor working for a general contractor on a state financed project has not been paid and wishes to submit a claim against the contractor's payment bond. What is the time period for doing this? 1 - 30 days after last furnishing labor or materials 2 - 60 days after last furnishing labor or materials 3 - 80 days after last furnishing labor or materials 4 - 120 days after last furnishing labor or materials
4 - 120 days after last furnishing labor or materials
Once a contractor's license expires, what is the period of time before the contractor has to repeat the license application? 1 - 30 Days 2 - 60 days 3 - 120 Days 4 - 4 Years
4 - 4 Years
What is a bond? 1 - A two-party contract between the surety, contractor and owner 2 - A two- party contract between the surety and the contractor 3 - A three party contract between the contractor, owner and developer 4 - A three-party contract between the surety, contractor and owner
4 - A three-party contract between the surety, contractor and owner
Which of the below is not a contributing factor for low profit margin? 1 - Low markup on estimate 2 - Poor safety implemented 3 - Cash accounting method 4 - Accrual method of accounting
4 - Accrual method of accounting
Commercial General Liability Insurance (CGL) covers: 1 - Bodily injury to non-employees 2 - Damage to property not belonging to business 3 - Personal injury, slander, damage to reputation 4 - All of the above
4 - All of the above
The contract bid documents include: 1 - Invitation to bid 2 - Bid Instructions 3 - Bid forms 4 - All of the above
4 - All of the above
When an owner purchases property insurance it will cover: 1 - Personal property 2 - Theft 3 - When loss occurs 4 - All of the above
4 - All of the above
Which of the below is correct in reference to a balance sheet? 1 - Assets + Owners Equity = Total Liabilities 2 - Total Liabilities = Assets + Owners Equity 3 - Owners Equity - Assets = Total Liabilities 4 - Assets = Liabilities + Owners Equity
4 - Assets = Liabilities + Owners Equity
The document that shows the status of your company is: 1 - Income statement 2 - Statement of cash flows 3 - Cash method 4 - Balance sheet
4 - Balance sheet
Your Comprehensive General Liability insurance protects you from which of the below? 1 - Persons not employed by you 2 - Damage to property other than your company 3 - Injury to employees 4 - Both 1 and 2
4 - Both 1 and 2
Which of the following is considered to be part of company overhead? 1 - Bonds 2 - Accounting fees 3 - Office rent 4 - Both 2 and 3
4 - Both 2 and 3
Which of the items below would not show up on an income statement? 1 - Construction costs 2 - Direct labor 3 - Gross profit 4 - Cash
4 - Cash
Which of the below is not part of the elements of a business plan? 1 - Executive summary 2 - Major competitors 3 - Financial plan 4 - Contract documents
4 - Contract documents
A home owner has $ 1000.00 damage due to bad installation of materials by the contractor, has a $ 500.00 deductible on his liability insurance and the contractor furnished no workers compensation. Who is responsible for these damages? 1 - Contractor and owner equally 2 - Insurance company 3 - Insurance company and contractor 4 - Contractor
4 - Contractor
Which of the below would pay state tax on income generated? 1 - Partnerships 2 - Limited Liabilities 3 - S Corporations 4 - Corporations
4 - Corporations
John Smith inherited some money and quit his job. He was able to get his limited contractor license and has decided to build a house for him and his family. His potential cost estimate has exceeded $565,000. At this time, he is waiting on his building permit so he can begin construction. Has he proceeded? 1 - Incorrectly - He doesn't have the correct license limitation to build a house of this cost. 2 - Incorrectly - He should enter into a joint venture with another general contractor with correct limitation. 3 - Correctly - He can build to his limitation and do upgrades later. 4 - Correctly - This is for his personal use and does not require a license
4 - Correctly - This is for his personal use and does not require a license
An 11 (eleven) month note due during a fiscal year is called: 1 - Current asset 2 - Long term liability 3 - Working capital 4 - Current liability
4 - Current liability
Where does the projected estimate versus actual estimated show on a balance sheet? 1 - Current assets 2 - Long term liability 3 - Long term assets 4 - Current liability
4 - Current liability
You needed to purchase special equipment that was only to be used on one project, which of the below would this be coded to? 1 - General overhead 2 - Material cost 3 - Equipment cost 4 - Direct cost
4 - Direct cost
There is a joint venture in North Carolina for a large contract, which is true? 1 - Ok to proceed if majority partner has license 2 - License is not needed 3 - License is needed in the joint venture name only 4 - Each party in the joint venture shall be licensed
4 - Each party in the joint venture shall be licensed
When a General Contractor contracts with a sub-contractor who does not have workers compensation, they: 1 - Must deduct the premium from sub-contractors pay 2 - Must notify sub-contractor's employees and inform them of this 3 - Must buy separate insurance for them 4 - Is completely responsible for workers compensation
4 - Is completely responsible for workers compensation
Employers are required by law to furnish 2 (two) copies of form W-2 to each employee from which taxes has been withheld from the previous year before: 1 - March 15 2 - December 31 3 - January 15 4 - January 31
4 - January 31
Federal Unemployment Taxes (FUTA) ended on October 15th, when are these taxes due? FUTA Taxes are filed on form 940. 1 - October 31st 2 - November 30th 3 - December 31st 4 - January 31st
4 - January 31st
What type of insurance is needed for specific individual or a key man? 1 - Workers compensation 2 - Umbrella 3 - Liability 4 - Key man life
4 - Key man life
If your taxes are due on Saturday June 30th, when do you have to pay them? 1 - Friday, June 29th 2 - Saturday, June 30th 3 - Sunday, July 1st 4 - Monday, July 2nd
4 - Monday, July 2nd
What is the profit margin if the net income is $ 10,000.00, the liabilities are $ 5,000.00 and the assets are $ 3,000.00? 1 - $ 5,000.00 2 - $ 2,000.00 3 - $ 8,000.00 4 - Not enough information given to calculate
4 - Not enough information given to calculate
A contractor has a claim under his comprehensive standard general liability policy with a rider floater that has $ 1,000 deductible per occurrence. The contractor's claim is $ 5,000 injuries to employee, $ 1,000 injury to pedestrians, $ 3,000 damage to contractor equipment and $ 3,000 for loss of project materials purchased by the contractor. What is the insurance company liable for on this claim? 1 - $ 10,000 2 - $ 11,000 3 - $ 12,000 4 - Nothing
4 - Nothing
Which of the below is mandatory for an employer to provide for an employee that is covered under the Fair Labor Standards Act (FLSA)? 1 - Vacation pay 2 - Sick pay 3 - Holiday pay 4 - Overtime pay
4 - Overtime pay
Employers must pay matching funds for Social Security tax withheld from the employee's check which is 6.2 percent up to $ 106,800 of gross pay. Also, the employer must pay Medicare tax at 1.45 percent, what is the gross amount for Medicare tax? 1 - $87,900 2 - $90,000 3 - $95,000 4 - Pay on all gross wages - there is no maximum
4 - Pay on all gross wages - there is no maximum
What contract accounting system would best suit a start up or small company with several large projects ongoing to give you a better picture of your financial position? 1 - Accrual method 2 - Cash method 3 - Completed contract method 4 - Percentage of completion method
4 - Percentage of completion method
Where is a general contractor's license displayed? 1 - Business file 2 - Licensing board 3 - Office of qualifier 4 - Place of business
4 - Place of business
If your Federal Unemployment Taxes are $ 5,000, when do you figure these taxes? 1 - Daily 2 - Semi weekly 3 - Monthly 4 - Quarterly
4 - Quarterly
If the contractor wishes to sign a contract with an owner and indemnify the owner against all damages what can the contractor do to indemnify the owner? 1 - Sign a contract with a change order clause 2 - Have higher performance bond 3 - Talk to an insurance agent 4 - Sign a lump sum contract
4 - Sign a lump sum contract
Which of the following would not be a fixed asset? 1 - Company vehicle 2 - House or office 3 - Land 4 - Stocks and bonds
4 - Stocks and bonds
Which of the below would not be included in a contract offer? 1 - Price or contract sum 2 - Scope of work description 3 - Schedule 4 - Sub-contractors
4 - Sub-contractors
Who is responsible for day to day activities on a construction project? 1 - Owner 2 - Architect 3 - Project manager 4 - Superintendent
4 - Superintendent
Who is responsible for paying the Federal Unemployment Tax? 1 - Tax is deducted from payroll check 2 - Not required in North Carolina 3 - Both employee and employer is required to pay 4 - Tax is paid by employer only at a rate of 6.2 percent on first $7,000 paid to employee
4 - Tax is paid by employer only at a rate of 6.2 percent on first $7,000 paid to employee
Which of the below is not a part of a Source Document? 1 - Check stub 2 - Time card 3 - Deposit slip 4 - Tax return
4 - Tax return
Liabilities are all debt and obligations owed by the business. Current liabilities are debts that will occur and must be paid within ____year. 1 - 1 2 - 2 3 - 3 4 - 4
1 - 1
Long term liabilities are debt obligations that extend beyond ___year. 1 - 1 2 - 2 3 - 3 4 - 4
1 - 1
The Fair Labor Standards Act (FLSA) applies to employers who have ____or more employees. 1 - 1 2 - 2 3 - 3 4 - 4
1 - 1
A company has the following financial information, what is the profit for the year? The below figures are just examples. Assets - $78,000 Current Liabilities $15,000 Inventory $12,000 Long Term Liabilities $ 45,000 Cost of Goods $ 17,000 Income $ 27,000
1 - $ 10,000
What would be the total cost of workman's compensation insurance for a company if the main office salary was at $125,000 at $1.20 per hundred and the field salaries were $250,000 at $8.50 per hundred? 1 - $22,750 2 - $23,823 3 - $24,720 4 - $25,223
1 - $22,750
A company has current assets of $250,000 and current liabilities of $ 180,000. Their fixed assets are $ 1,500,000 and long-term debt is $750,000. Their bonding capacity is 10 times their working capital, what is their bonding capacity. 1 - $700,000 2 - $750,000 3 - $1,000,000 4 - $1,500,000
1 - $700,000
What percentage of an employee's pay must be withheld for worker's compensation insurance? 1 - 0 2 - 1.45 3 - 6.20 4 - 7.65
1 - 0
According to FLSA (Fair Labor Standards Act) how many vacation hours per year are employers required to provide for their employees? 1 - 0 hours 2 - 20 hours 3 - 40 hours 4 - 45 hours
1 - 0 hours
