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California State
Contractors License Law
and Business Test Study
Guide | CSLB Exam Prep
Practice Questions and
Answers
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California
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California Contractors License Practice Questions and Answers
Question 1
What are the three essential estimates needed to determine your markup?
Answer:
Gross Income
Overhead Expenses
Desired Net Profit
Question 2
What is the accounting equation?
Answer:
Assets = Liabilities + Equity
Question 3
Which accounting method records transactions only when cash changes hands?
Answer:
Cash Basis Accounting
Question 4
Which accounting method records transactions whether or not cash has been received or paid?
Answer:
Accrual Accounting
Question 5
After hiring an employee or paying $100 or more in wages, which agency must an employer
register with?
Answer:
The Employment Development Department (EDD).
Question 6
What is a contract?
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State Contractors License Law and Business Test Study Guide _ CSLB Exam Prep Practice Questions
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and1Answershttps://www.stuvia.com/user/stillo
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https://www.stuvia.com/user/reeveanthonyhttps://www.stuvia.com/user/reeveanthony
California State
Contractors License Law
and Business Test Study
Guide | CSLB Exam Prep
Practice Questions and
Answers
https://www.stuvia.com/user/reevhttps://www.stuvia.com/user/reeveanthony
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California
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Contractors License Law and Business Test Study Guide _ CSLB Exam Prep Practice Questions and Answershttps://www.stuvia.com/user/stillo
https://www.stuvia.com/user/stillo
, https://www.stuvia.com/user/stillo Exam Style Rewritehttps://www.stuvia.com/user/stillo Page 2 of 17https://www.stuvia.com/user/stillo
California Contractors License Practice Questions and Answers
Question 1
What are the three essential estimates needed to determine your markup?
Answer:
Gross Income
Overhead Expenses
Desired Net Profit
Question 2
What is the accounting equation?
Answer:
Assets = Liabilities + Equity
Question 3
Which accounting method records transactions only when cash changes hands?
Answer:
Cash Basis Accounting
Question 4
Which accounting method records transactions whether or not cash has been received or paid?
Answer:
Accrual Accounting
Question 5
After hiring an employee or paying $100 or more in wages, which agency must an employer
register with?
Answer:
The Employment Development Department (EDD).
Question 6
What is a contract?
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