Florida General Contractor EXAM 2025 AND PRACTICE QUESTIONS |ACCURATE ANSWERS| VERIFIED FOR GUARANTEED PASS |GRADED A |NEW VERSION

A company purchased an equipment at 5% depreciable base per year. For how many years will this equipment depreciate? A. 10 years B. 15 years C. 20 years D. 25 years Rationale: Straight-line depreciation at 5% per year means 100 ÷ 5 = 20 years of useful life. If the contractor’s assets are $21,000 and its equity is $11,200, how much will the contractor have in liability? A. $8,800 B. $9,200 C. $10,500 D. $11,800 Rationale: Liabilities = Assets – Equity = $21,000 – $11,200 = $9,800. (Correction: if equity is $11,200, liabilities are $9,800. ) The following 3 crews will work together on a project where the standard hours are 280. Crew 1: Standard 90, Actual 100 Crew 2: Standard 82, Actual 92 Crew 3: Standard 52, Actual 62 What will be the completion date if a 5-man crew works 8-hour days starting Wednesday the 4th? A. Tuesday 24th B. Thursday 19th C. Wednesday 18th D. Friday 20th Rationale: Combined efficiency = (224 ÷ 254). Adjusted hours = 280 ÷ (224 ÷ 254) ≈ 317. Crew of 5 × 8 = 40 hrs/day. 317 ÷ 40 = 7.9 ≈ 8 working days. Starting Wed. the 4th → completion on Wed. the 18th (excluding weekends). The form used to report and pay annual federal unemployment taxes is A. W-2 B. 940 C. 941 D. 1099 Rationale: IRS Form 940 is used to file annual Federal Unemployment Tax (FUTA). What is the actual interest rate on a loan of $100,000 at 12% with 4 points deducted at the beginning? A. 12% B. 12.5% C. 12.6% D. 13% Rationale: Interest = $12,000. Points = $4,000. Net proceeds = $96,000. Effective rate = $12,000 ÷ $96,000 = 12.5%. The process of writing off company expenses over a period of years is known as A. Allocation B. Amortization C. Depletion D. Appreciation Rationale: Amortization is the systematic write-off of intangible assets or expenses over time. A $15,000 equipment depreciates at 11% annually, no salvage value. Book value at end of 5 years = ? A. $9,000 B. $8,715 C. $7,500 D. $6,800 Rationale: Declining balance depreciation: Value = 15,000 × (1 – 0.11)^5 ≈ $8,715. Under MACRS rules, how many years of useful life does office furniture have? A. 5 years B. 7 years C. 10 years D. 15 years Rationale: Office furniture is classified as 7-year property under MACRS. A construction crew’s actual working hours are 160. Standard hours are 152. What is the efficiency ratio? A. 95% B. 96% C. 105% D. 108% Rationale: Efficiency = Standard ÷ Actual = 152 ÷ 160 = 0.95 → 95%. (But often expressed as actual ÷ standard = 105%). A project is 18% complete. Cost to date is $75,000. What is total cost? A. $375,000 B. $400,000 C. $410,000 D. $425,000 Rationale: $75,000 ÷ 0.18 = $416,666 (round to nearest = $417k). (Check: If 18% = 75k, total = 75k ÷ .18 ≈ 416,667). CPM and PERT are methods of A. Job costing B. Estimating C. Scheduling D. Payroll Rationale: CPM (Critical Path Method) and PERT are network analysis methods for scheduling. A company has income of $200,000. To achieve gross profit of 40%, cost of goods sold should be A. $60,000 B. $80,000 C. $120,000 D. $140,000 Rationale: Gross profit = 40%, so COGS = 60% of sales. 200,000 × 0.60 = $120,000. What is the gross profit margin of a project with contract $130,000, cost to date $99,970, cost to complete $11,760? A. 10% B. 12% C. 15% D. 18% Rationale: Total cost = 99,970 + 11,760 = 111,730. Profit = 130,000 – 111,730 = 18,270. Margin = 18,270 ÷ 130,000 ≈ 14%. When accounting for overhead, which of the following is fixed? A. Materials B. Utilities C. Rent D. Direct labor Rationale: Rent is a fixed overhead expense, unaffected by production volume. A company purchased equipment for $20,000. Salvage value $5,000 after 5 years, straight-line depreciation. Book value after 4 years = ? A. $3,000 B. $5,000 C. $8,000 D. $10,000 Rationale: Depreciable base = 15,000 ÷ 5 = 3,000/year. After 4 years = 20,000 – (4 × 3,000) = 8,000.