Chapter 2 - Business Finances - California Contractor License Exam Questions and Answers 100% Pass

Chapter 2 - Business Finances - California Contractor License Exam Questions and Answers 100% Pass 5 years - Correct Answer ️️ -Contracts, sales receipts and disbursements should be kept at LEAST: California Department of Tax and Fee Administration - Correct Answer ️️ -When collecting sales tax from a customer for goods, to which agency is the sales tax reported and paid? Large penalties can be charged for late filings - Correct Answer ️️ -What can happen if payroll tax returns are not filed in a timely manner? Retention - Correct Answer ️️ -Account Receivable contains? Office rent - Correct Answer ️️ -What is is considered a fixed cost to a contractor? Part of the overhead - Correct Answer ️️ -A fixed cost is: Construction material - Correct Answer ️️ -What is considered a variable cost to a contractor? Internal Revenue Service - Correct Answer ️️ -Employers must report and pay federal unemployment (FUTA) tax to which agency? 50% employer and 50% employee - Correct Answer ️️ -Although employers report social security (FICA) tax to the IRS, what are the appropriate shares paid by the employee and employer? Fixed asset section - Correct Answer ️️ -Where would depreciation appear on the Balance Sheet? Comparing the job cost record to the budget - Correct Answer ️️ -When a contractor loses money on a job, the contractor should investigate in the estimating system, trim labor costs or use materials more effectively. Which of the following is the best way to determine these sources of information? Estimates for similar previous projects - Correct Answer ️️ -What would a contractor use to determine the budget of a new project? Expenses such as rent, manager's salary, etc. - Correct Answer ️️ -What are the fixed costs in the construction business? Maximum tax that can be imposed. - Correct Answer ️️ -What does the ceiling limit mean in tax? Hire a bookeeper or CPA to maintain accounting data - Correct Answer ️️ -To keep accurate accounting records, it is recommended that the contractor