VA Contractors License Exam – Advanced 2025 -
2026 Practice Questions and Verified Answers for
Actual State Test Preparation Graded A+
1. **A lump sum contract on a project has a total contract price of $160,000. Retainage
has been held back at 10%. The contractor has received progress payments for 75% of
the project. The contractor submits a request for final payment for the new completed
project. The final payment amount should be for...**
- More than $50,000
2. **What is the total value of current assets for an accrual basis company that has the
following? Checking account cash balance is $4,800; materials inventory for work-in-
progress is $4,200; a pick-up truck that cost $12,460 – paid for with $2,460 in cash and
a note for $10,000 – and is used 100% in the business; accounts receivable is $5,700;
suppliers’ accounts payable is $6,300; other accounts payable is $2,200; and quarterly
income tax payment due is $1,180...**
- Between $12,000 and $16,000
3. **What is the total project overhead for a project that lasts 3 months and has the
following costs? Labor is $4,000; materials are $9,500; equipment rentals are $1,200;
superintendent’s annual salary is $36,000; office rent is $800 per month; and office
utilities are $375 per month.**
- Less than $12,000
4. **For 1 month a company bills out $38,000 in completed work, and receives $22,000
in payments plus $8,000 from the previous month’s billings. They pay their total bill of
$26,000 to supply houses for this month’s purchases, and another $5,000 to supply
houses for last month’s purchases. Using a cash accounting method and NOT
,considering any other revenue or expenses, what is the company’s net income for the
month?**
- Loss of $1,000
5. **The owner requests for change which will cost the contractor $15,000 in labor and
materials and $2,250 in overhead costs. With the change, the contractor would be
relieved of $18,000 in labor and materials costs, and $2,400 in overhead costs from the
original contract. The original bid included profit of 20% of all costs. The contractor
wants to make a profit of 20% of all costs on the changes. The adjusted contract price
for the change order should be...**
- A decrease of $3,780
6. **Which of the following would typically be covered by a contractor’s comprehensive
general liability insurance policy?**
- Damage to adjoining property from a crane accident
7. **What is the total gross compensation and employment status for a carpenter, given
the following information? A contractor hires a carpenter to do the finish work for a 10-
home project. The carpenter is to be paid $16 per hour. The contractor provides all
materials and equipment, such as a table saw. The carpenter provides all of his own
hand tools. The contractor and the carpenter agree that all of the homes are to be
completed within 60 8-hour working days, without overtime. The contractor provides the
carpenter with a schedule of the order in which homes are to be worked on. The
contractor provides a helper to assist the carpenter. The contractor sets the work
schedule each day. The carpenter spends 600 hours to complete this project, including
120 hours of overtime.**
- The carpenter is an employee and is owed $10,560 for the project
8. **What is the name of the process when a facilitator meets with the major participants
in a project, prior to the commencement of the project, to identify the shared goals of all
participants?**
- Partnering
, 9. **What is the average collection period ratio for a firm that has $365,000 in annual
revenues, $6,600 in current receivables, and net income of $32,000?**
- 6.6
10. **Who oversees compliance with Material Safety Data Sheets?**
- OSHA
11. **A non-exempt employee of a contractor covered by the Fair Labor Standards Act
works 60 hours during a workweek. The agreement is to pay the employee $400 each
week regardless of the numbers of hours worked. What should be the employee’s gross
pay for the worksheet?**
- $700.50
12. **In the previous year, a company had revenues of $500,000 project overhead of
$40,000 and company overhead of $75,000. The company expects the percentage for
project and company overhead to remain the same for the current year. The company
desires to make a 10% profit on a project it is bidding. The project would have $80,000
in direct costs. What should the bid price be?**
- Between $110,000 and $120,000
13. **How much state income tax MUST be paid by a corporation that has $30,000 of
Federal taxable income? The company deducted $2,000 of state and local taxes on the
Federal return, and had $2,000 of qualified worker retraining expenses. The corporation
does business ONLY in Virginia.**
- $1,080
14. **How much is an employer who withheld employee Medicare and Social Security
taxes or $765 required to send to the IRS?**
- $1,530
2026 Practice Questions and Verified Answers for
Actual State Test Preparation Graded A+
1. **A lump sum contract on a project has a total contract price of $160,000. Retainage
has been held back at 10%. The contractor has received progress payments for 75% of
the project. The contractor submits a request for final payment for the new completed
project. The final payment amount should be for...**
- More than $50,000
2. **What is the total value of current assets for an accrual basis company that has the
following? Checking account cash balance is $4,800; materials inventory for work-in-
progress is $4,200; a pick-up truck that cost $12,460 – paid for with $2,460 in cash and
a note for $10,000 – and is used 100% in the business; accounts receivable is $5,700;
suppliers’ accounts payable is $6,300; other accounts payable is $2,200; and quarterly
income tax payment due is $1,180...**
- Between $12,000 and $16,000
3. **What is the total project overhead for a project that lasts 3 months and has the
following costs? Labor is $4,000; materials are $9,500; equipment rentals are $1,200;
superintendent’s annual salary is $36,000; office rent is $800 per month; and office
utilities are $375 per month.**
- Less than $12,000
4. **For 1 month a company bills out $38,000 in completed work, and receives $22,000
in payments plus $8,000 from the previous month’s billings. They pay their total bill of
$26,000 to supply houses for this month’s purchases, and another $5,000 to supply
houses for last month’s purchases. Using a cash accounting method and NOT
,considering any other revenue or expenses, what is the company’s net income for the
month?**
- Loss of $1,000
5. **The owner requests for change which will cost the contractor $15,000 in labor and
materials and $2,250 in overhead costs. With the change, the contractor would be
relieved of $18,000 in labor and materials costs, and $2,400 in overhead costs from the
original contract. The original bid included profit of 20% of all costs. The contractor
wants to make a profit of 20% of all costs on the changes. The adjusted contract price
for the change order should be...**
- A decrease of $3,780
6. **Which of the following would typically be covered by a contractor’s comprehensive
general liability insurance policy?**
- Damage to adjoining property from a crane accident
7. **What is the total gross compensation and employment status for a carpenter, given
the following information? A contractor hires a carpenter to do the finish work for a 10-
home project. The carpenter is to be paid $16 per hour. The contractor provides all
materials and equipment, such as a table saw. The carpenter provides all of his own
hand tools. The contractor and the carpenter agree that all of the homes are to be
completed within 60 8-hour working days, without overtime. The contractor provides the
carpenter with a schedule of the order in which homes are to be worked on. The
contractor provides a helper to assist the carpenter. The contractor sets the work
schedule each day. The carpenter spends 600 hours to complete this project, including
120 hours of overtime.**
- The carpenter is an employee and is owed $10,560 for the project
8. **What is the name of the process when a facilitator meets with the major participants
in a project, prior to the commencement of the project, to identify the shared goals of all
participants?**
- Partnering
, 9. **What is the average collection period ratio for a firm that has $365,000 in annual
revenues, $6,600 in current receivables, and net income of $32,000?**
- 6.6
10. **Who oversees compliance with Material Safety Data Sheets?**
- OSHA
11. **A non-exempt employee of a contractor covered by the Fair Labor Standards Act
works 60 hours during a workweek. The agreement is to pay the employee $400 each
week regardless of the numbers of hours worked. What should be the employee’s gross
pay for the worksheet?**
- $700.50
12. **In the previous year, a company had revenues of $500,000 project overhead of
$40,000 and company overhead of $75,000. The company expects the percentage for
project and company overhead to remain the same for the current year. The company
desires to make a 10% profit on a project it is bidding. The project would have $80,000
in direct costs. What should the bid price be?**
- Between $110,000 and $120,000
13. **How much state income tax MUST be paid by a corporation that has $30,000 of
Federal taxable income? The company deducted $2,000 of state and local taxes on the
Federal return, and had $2,000 of qualified worker retraining expenses. The corporation
does business ONLY in Virginia.**
- $1,080
14. **How much is an employer who withheld employee Medicare and Social Security
taxes or $765 required to send to the IRS?**
- $1,530
