Alabama Home Builder Business & Law
Practice Exam Latest Update with
complete solution
What is the name of the process whereby an estimate is created containing all of the
materials? - ✔️✔️takeoff
What is the penalty for submitting an IRS payroll tax deposit in the amount of $5,000
that is 2 days late? - ✔️✔️$100
In the state of Alabama what two types of residential home building licensees can be
issued? - ✔️✔️limited or unlimited
On a balance sheet, what does the term "current" mean? - ✔️✔️one year or less
Overtime wages are paid at what percentage of the normal wage rate? - ✔️✔️150%
A project with a $750,000 value is 60% complete and the amount billed and received to
date is 20%. What is the amount of the next progress payment? - ✔️✔️$300,000
At what rate of gross pay of medicare tax calculated? - ✔️✔️1.45
Prior to being issued a contractor's license, an individual may: - ✔️✔️Work as a regular
employee for a licensed contractor
What is the fee for applicants holding expired licenses for less than three years. -
✔️✔️$295.00
What is the total bid amount if a company wishes to earn a 20% profit margin on a
$75,000 estimate? - ✔️✔️$93,750
Where must liens be filled in order to be properly recorded? - ✔️✔️Office of the Judge
of probate
What type of bond would be used to protect the owner from subcontractors, suppliers or
laborers that were not compensated by the contractor? - ✔️✔️Payment Bond
Practice Exam Latest Update with
complete solution
What is the name of the process whereby an estimate is created containing all of the
materials? - ✔️✔️takeoff
What is the penalty for submitting an IRS payroll tax deposit in the amount of $5,000
that is 2 days late? - ✔️✔️$100
In the state of Alabama what two types of residential home building licensees can be
issued? - ✔️✔️limited or unlimited
On a balance sheet, what does the term "current" mean? - ✔️✔️one year or less
Overtime wages are paid at what percentage of the normal wage rate? - ✔️✔️150%
A project with a $750,000 value is 60% complete and the amount billed and received to
date is 20%. What is the amount of the next progress payment? - ✔️✔️$300,000
At what rate of gross pay of medicare tax calculated? - ✔️✔️1.45
Prior to being issued a contractor's license, an individual may: - ✔️✔️Work as a regular
employee for a licensed contractor
What is the fee for applicants holding expired licenses for less than three years. -
✔️✔️$295.00
What is the total bid amount if a company wishes to earn a 20% profit margin on a
$75,000 estimate? - ✔️✔️$93,750
Where must liens be filled in order to be properly recorded? - ✔️✔️Office of the Judge
of probate
What type of bond would be used to protect the owner from subcontractors, suppliers or
laborers that were not compensated by the contractor? - ✔️✔️Payment Bond
