CSLB CH. 5 Questions And Answers

CSLB CH. 5 Questions And Answers 1. 1 year - ANS-1.) Current liabilities on a balance sheet are debts that become due within: 2. Revenues and expenses over an extended period of time - ANS-2.) An income statement shows: 3. When the cash changes hands - ANS-3.) In the cash system of accounting, a transaction is recorded or posted: 4. Money due from customers who have purchased goods or services - ANS-4.) Of the following which is the best description for accounts receivable? 5. A budget should allow leeway for month to month variations - ANS-5.) Which of the following is a correct statement about budgets? 6. Use funds from a pre-established line of credit - ANS-6.) If a contractor has temporary cash-flow problem, what is a good way to get through the crisis? 7. Coverage and Cost - ANS-7.) Greg is looking to purchase an insurance policy. He is calling different companies to obtain different quotes. What is the best way to choose among different companies? 8. Net Profit or Loss - ANS-8.) The bottom line of the P & L statement shows: 9. They may form a corporation and obtain a corporate license - ANS-9.) A licensed contractor wants to do construction projects with an unlicensed individual. Of the following, which is a legal alternative? 10. The Board of Equalization - ANS-10.) To whom do you report and pay Use tax?