CA Contractors license test questions with correct answers

How much time does a contractor have to renew his license after the expiration date without retaking the exam? CORRECT ANSWER 5 year When you collect sales tax from your customer for goods, which agency do you report and pay sales tax collected? CORRECT ANSWER State board of equalization Sales tax is a state tax. State income taxes are payable to the franchise tax board. IRS only collects federal taxes How long is the contractor liable for patent or visible defects? CORRECT ANSWER 4 years How long is the contractorr liable for latent or structural defects CORRECT ANSWER Latent is an invisible or structural defect liable for up to 10 years Accounts receivable contains CORRECT ANSWER Retention Retention usually 10%; it is withheld by the owner from the contract to ensure that the job is done properly and subcontractors are paid. What is considered a fixed cost to a contractor? CORRECT ANSWER Office rent What is considered a variable cost to contractors? CORRECT ANSWER Construction material If a home solicitation presentation is made in spanish, the contract language must be CORRECT ANSWER spanish