contractors business/law actual exam
questions with correct answers
graded a+ latest version 2026 assured
excel!!
1. If an employer's Federal Payroll Tax liability is $1000 how may they pay taxes? -
CORRECT ANSWERS-quarterly
2. How many employees does it take for the Fair Labor Act to be applied? - CORRECT
ANSWERS-1
3. What accounting method records income when the service occurs and expense when
they are incurred? - CORRECT ANSWERS-Accrual Method
4. What do the General Conditions of a contract do? - CORRECT ANSWERS-Outline roles of
the owner, architect, and engineer.
5. You are purchasing an insurance policy with a monthly premium of $300. If you
implement a safety program you can save 10% on the cost of the policy. The safety
program costs $400 to start and $15 a month to maintain it. What would be the net
difference in cost over three year period with a safety program? - CORRECT ANSWERS-
Net saving of $140
6. Written construction contract change order should include a description of the
modification to be made, any change in contract time and - CORRECT ANSWERS-The
change in the contract dollar amount
7. Which of the following is a written agreement between the owner and contractor to
change the contract? - CORRECT ANSWERS-change order
, 8. What term identifies money withheld from progress payments to the contractor and
paid after the completion of the project? - CORRECT ANSWERS-Retainage
9. When is final payment due? - CORRECT ANSWERS-Final inspection, acceptance by
owner and submittal of proper documentation must occur
10. After hiring a disabled person, which of the following can't you do, according to the
American with Disabilities Act? - CORRECT ANSWERS-Require a medical examination of
just the person you suspect is disabled.
11. The percentage of completion method of accounting does what - CORRECT ANSWERS-
recognizes profit as it is earned
12. Workers are on a job site where noise is very loud. Who is supposed to supply the
workers with ear protection? - CORRECT ANSWERS-contractor (employer)
13. Where can you get accurate information about tax deposit schedules? - CORRECT
ANSWERS-IRS Publication Circular E
14. Which of the following statements correctly describes the cash method of accounting? -
CORRECT ANSWERS-Income / expenses are recorded at the time they are received / paid
15. 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 - CORRECT
ANSWERS-Workers Compensation
16. If an employee is covered by Workers Compensation in the state of Utah and is doing a
job in Colorado and gets injured, are they covered by Utah Workers Compensation? -
questions with correct answers
graded a+ latest version 2026 assured
excel!!
1. If an employer's Federal Payroll Tax liability is $1000 how may they pay taxes? -
CORRECT ANSWERS-quarterly
2. How many employees does it take for the Fair Labor Act to be applied? - CORRECT
ANSWERS-1
3. What accounting method records income when the service occurs and expense when
they are incurred? - CORRECT ANSWERS-Accrual Method
4. What do the General Conditions of a contract do? - CORRECT ANSWERS-Outline roles of
the owner, architect, and engineer.
5. You are purchasing an insurance policy with a monthly premium of $300. If you
implement a safety program you can save 10% on the cost of the policy. The safety
program costs $400 to start and $15 a month to maintain it. What would be the net
difference in cost over three year period with a safety program? - CORRECT ANSWERS-
Net saving of $140
6. Written construction contract change order should include a description of the
modification to be made, any change in contract time and - CORRECT ANSWERS-The
change in the contract dollar amount
7. Which of the following is a written agreement between the owner and contractor to
change the contract? - CORRECT ANSWERS-change order
, 8. What term identifies money withheld from progress payments to the contractor and
paid after the completion of the project? - CORRECT ANSWERS-Retainage
9. When is final payment due? - CORRECT ANSWERS-Final inspection, acceptance by
owner and submittal of proper documentation must occur
10. After hiring a disabled person, which of the following can't you do, according to the
American with Disabilities Act? - CORRECT ANSWERS-Require a medical examination of
just the person you suspect is disabled.
11. The percentage of completion method of accounting does what - CORRECT ANSWERS-
recognizes profit as it is earned
12. Workers are on a job site where noise is very loud. Who is supposed to supply the
workers with ear protection? - CORRECT ANSWERS-contractor (employer)
13. Where can you get accurate information about tax deposit schedules? - CORRECT
ANSWERS-IRS Publication Circular E
14. Which of the following statements correctly describes the cash method of accounting? -
CORRECT ANSWERS-Income / expenses are recorded at the time they are received / paid
15. 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 - CORRECT
ANSWERS-Workers Compensation
16. If an employee is covered by Workers Compensation in the state of Utah and is doing a
job in Colorado and gets injured, are they covered by Utah Workers Compensation? -
