Contractor's License Exam- Michigan
Contractor's License Exam- Michigan
Study online at https://quizlet.com/_fyi8o4
1. The Amount remaining after deducting direct and in- D: Net Profit
direct costs from revenues is known as?
A. Total Loss Explanation: Net Profit =
B. Gross Profit Revenues - All cost of pro-
C. Loss Ratio ject
D. Net Profit
2. It is best to keep separate ledgers for short-term and C. some discrepancies
long-term accounts receivable because? will be expected with
long-term accounts re-
A. Long-term accounts receivable are generally paid ceivable and final disposi-
promptly and in full tion of the contract
B. the amount and timing of the final payment can be Explanation: separate
hard to predict in short-term accounts receivable ledgers make it easier to
find the discrepancies and
C. some discrepancies will be expected with long-term
receive any missing profit
accounts receivable and final disposition of the con-
as with long term stand-
tract
ing accounts create a run-
ning tab with addition-
D. some discrepancies will be expected with
al projects being continu-
short-term accounts receivable and the final disposi-
ously added as opposed to
tion of the contract
the short term where it is a
one project and done.
3. The employee pays a portion of each except for________ Answer: B. Federal Unem-
which is paid entirely by the employer. ployment Tax
A. Social Security Tax Explanation: employers
must pay both state
B. Federal Unemployment Tax and Federal unemploy-
ment taxes if: (1) they pay
C. Medicare Tax
, Contractor's License Exam- Michigan
Contractor's License Exam- Michigan
Study online at https://quizlet.com/_fyi8o4
wages to employees total-
D. Federal Income Tax ing $1,500, or more, in any
quarter of a calendar year;
or, (2) they had at least one
employee during any day
of a week during 20 weeks
in a calendar year, regard-
less of whether or not the
weeks were consecutive
4. Jasmine the contractor is having a busy year for work. A. keep separate ledgers
She has 3 long-term projects going on at once, and for short-term and
there have been at least 10 short-term projects com- long-term accounts re-
pleted throughout the year. Jasmine does her own cievable
bookkeeping. The best practice would be for her to do
what?
A. keep separate ledgers for short-term and long-term
accounts recievable
B. wait until the next year tax year to keep separate
ledgers for short term and long term accounts
C. keep a ledger for the short term accounts, and wait
until the long-term projects are finished to record the
accounts receivable
D. keep one ledger for both types of accounts receiv-
able
5. What is the formula for finding the gross profit to sales Answer: D
ratio?
Contractor's License Exam- Michigan
Study online at https://quizlet.com/_fyi8o4
1. The Amount remaining after deducting direct and in- D: Net Profit
direct costs from revenues is known as?
A. Total Loss Explanation: Net Profit =
B. Gross Profit Revenues - All cost of pro-
C. Loss Ratio ject
D. Net Profit
2. It is best to keep separate ledgers for short-term and C. some discrepancies
long-term accounts receivable because? will be expected with
long-term accounts re-
A. Long-term accounts receivable are generally paid ceivable and final disposi-
promptly and in full tion of the contract
B. the amount and timing of the final payment can be Explanation: separate
hard to predict in short-term accounts receivable ledgers make it easier to
find the discrepancies and
C. some discrepancies will be expected with long-term
receive any missing profit
accounts receivable and final disposition of the con-
as with long term stand-
tract
ing accounts create a run-
ning tab with addition-
D. some discrepancies will be expected with
al projects being continu-
short-term accounts receivable and the final disposi-
ously added as opposed to
tion of the contract
the short term where it is a
one project and done.
3. The employee pays a portion of each except for________ Answer: B. Federal Unem-
which is paid entirely by the employer. ployment Tax
A. Social Security Tax Explanation: employers
must pay both state
B. Federal Unemployment Tax and Federal unemploy-
ment taxes if: (1) they pay
C. Medicare Tax
, Contractor's License Exam- Michigan
Contractor's License Exam- Michigan
Study online at https://quizlet.com/_fyi8o4
wages to employees total-
D. Federal Income Tax ing $1,500, or more, in any
quarter of a calendar year;
or, (2) they had at least one
employee during any day
of a week during 20 weeks
in a calendar year, regard-
less of whether or not the
weeks were consecutive
4. Jasmine the contractor is having a busy year for work. A. keep separate ledgers
She has 3 long-term projects going on at once, and for short-term and
there have been at least 10 short-term projects com- long-term accounts re-
pleted throughout the year. Jasmine does her own cievable
bookkeeping. The best practice would be for her to do
what?
A. keep separate ledgers for short-term and long-term
accounts recievable
B. wait until the next year tax year to keep separate
ledgers for short term and long term accounts
C. keep a ledger for the short term accounts, and wait
until the long-term projects are finished to record the
accounts receivable
D. keep one ledger for both types of accounts receiv-
able
5. What is the formula for finding the gross profit to sales Answer: D
ratio?
