CONTRACTORS BUSINESS/LAW EXAM
QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS 100%
CORRECT RATED A+
If an employer's Federal Payroll Tax liability is $1,000, how may they pay taxes?
✔✔ Answer: Quarterly
How many employees does it take for the Fair Labor Standards Act to be applied?
✔✔ Answer: 1 employee
What accounting method records income when service occurs and expenses when
they are incurred?
✔✔ Answer: Accrual method
What do the General Conditions of a contract do?
✔✔ Answer: Outline the roles of the owner, architect, and engineer
Insurance question (3-year net cost with safety program):
✔✔ Answer: Net savings of $140
A written construction contract change order should include a description of the
modification, any change in contract time, and:
Which of the following is a written agreement between the owner and contractor to
change the contract? -ANSWER ✔✔change order
, What term identifies money withheld from progress payments to the contractor and
paid after the completion of the project? -ANSWER ✔✔Retainage
When is final payment due? -ANSWER ✔✔Final inspection, acceptance by owner
and submittal of proper documentation must occur
After hiring a disabled person, which of the following can't you do, according to
the American with Disabilities Act? -ANSWER ✔✔Require a medical
examination of just the person you suspect is disabled.
The percentage of completion method of accounting does what -ANSWER
✔✔recognizes profit as it is earned
Workers are on a job site where noise is very loud. Who is supposed to supply the
workers with ear protection? -ANSWER ✔✔contractor (employer)
Where can you get accurate information about tax deposit schedules? -ANSWER
✔✔IRS Publication Circular E
Which of the following statements correctly describes the cash method of
accounting? -ANSWER ✔✔Income / expenses are recorded at the time they are
received / paid
What type of workplace insurance provides all the benefits required by law for
employees' who are killed or injured as a result of their employment -ANSWER
✔✔Workers Compensation
QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS 100%
CORRECT RATED A+
If an employer's Federal Payroll Tax liability is $1,000, how may they pay taxes?
✔✔ Answer: Quarterly
How many employees does it take for the Fair Labor Standards Act to be applied?
✔✔ Answer: 1 employee
What accounting method records income when service occurs and expenses when
they are incurred?
✔✔ Answer: Accrual method
What do the General Conditions of a contract do?
✔✔ Answer: Outline the roles of the owner, architect, and engineer
Insurance question (3-year net cost with safety program):
✔✔ Answer: Net savings of $140
A written construction contract change order should include a description of the
modification, any change in contract time, and:
Which of the following is a written agreement between the owner and contractor to
change the contract? -ANSWER ✔✔change order
, What term identifies money withheld from progress payments to the contractor and
paid after the completion of the project? -ANSWER ✔✔Retainage
When is final payment due? -ANSWER ✔✔Final inspection, acceptance by owner
and submittal of proper documentation must occur
After hiring a disabled person, which of the following can't you do, according to
the American with Disabilities Act? -ANSWER ✔✔Require a medical
examination of just the person you suspect is disabled.
The percentage of completion method of accounting does what -ANSWER
✔✔recognizes profit as it is earned
Workers are on a job site where noise is very loud. Who is supposed to supply the
workers with ear protection? -ANSWER ✔✔contractor (employer)
Where can you get accurate information about tax deposit schedules? -ANSWER
✔✔IRS Publication Circular E
Which of the following statements correctly describes the cash method of
accounting? -ANSWER ✔✔Income / expenses are recorded at the time they are
received / paid
What type of workplace insurance provides all the benefits required by law for
employees' who are killed or injured as a result of their employment -ANSWER
✔✔Workers Compensation
