CSLB CH. 5 EXAM ACTUAL QUESTIONS AND
ANSWERS 2025/2026 A+ GRADE.
1 year - CORRECT ANSWER - -1.) Current liabilities on a balance sheet are debts that become
due within:
Revenues and expenses over an extended period of time - CORRECT ANSWER - -
2.) An income statement shows:
When the cash changes hands - CORRECT ANSWER - -
3.) In the cash system of accounting, a transaction is recorded or posted:
Money due from customers who have purchased goods or services - CORRECT ANSWER - -
4.) Of the following which is the best description for accounts receivable?
A budget should allow leeway for month to month variations - CORRECT ANSWER - -
5.) Which of the following is a correct statement about budgets?
Use funds from a pre-established line of credit - CORRECT ANSWER --6.) If a contractor has
temporary cash- flow problem, what is a good way to get through the crisis?
Coverage and Cost - CORRECT ANSWER - -
7.) Greg is looking to purchase an insurance policy. He is calling different companies to obtain differen
t quotes. What is the best way to choose among different companies?
Net Profit or Loss - CORRECT ANSWER - -8.) The bottom line of the P & L statement shows:
They may form a corporation and obtain a corporate license - CORRECT ANSWER - -
9.) A licensed contractor wants to do construction projects with an unlicensed individual. Of the follow
ing, which is a legal alternative?
The Board of Equalization - CORRECT ANSWER - -10.) To whom do you report and pay Use tax?
ANSWERS 2025/2026 A+ GRADE.
1 year - CORRECT ANSWER - -1.) Current liabilities on a balance sheet are debts that become
due within:
Revenues and expenses over an extended period of time - CORRECT ANSWER - -
2.) An income statement shows:
When the cash changes hands - CORRECT ANSWER - -
3.) In the cash system of accounting, a transaction is recorded or posted:
Money due from customers who have purchased goods or services - CORRECT ANSWER - -
4.) Of the following which is the best description for accounts receivable?
A budget should allow leeway for month to month variations - CORRECT ANSWER - -
5.) Which of the following is a correct statement about budgets?
Use funds from a pre-established line of credit - CORRECT ANSWER --6.) If a contractor has
temporary cash- flow problem, what is a good way to get through the crisis?
Coverage and Cost - CORRECT ANSWER - -
7.) Greg is looking to purchase an insurance policy. He is calling different companies to obtain differen
t quotes. What is the best way to choose among different companies?
Net Profit or Loss - CORRECT ANSWER - -8.) The bottom line of the P & L statement shows:
They may form a corporation and obtain a corporate license - CORRECT ANSWER - -
9.) A licensed contractor wants to do construction projects with an unlicensed individual. Of the follow
ing, which is a legal alternative?
The Board of Equalization - CORRECT ANSWER - -10.) To whom do you report and pay Use tax?
