CSLB Exam Law and Business
Questions with Complete Solutions2
How much time does a contractor have to renew his/her license after the expiration date
without retaking the license exam? - ANSWERS-The contractor is not required to retake the
exam if the license is renewed within 5 years, from the expiration date
If the contractor unlawfully removes asbestos he/she may be fined.... - ANSWERS-minimum of
$1,000 and or have his/her license revoked or suspended
when you collect sales tax from your customers goods, to which agency do you report and pay
sales tax collected? - ANSWERS-sales tax is a state tax and is payable to the state board of
equalization.
Who do you pay state income tax to - ANSWERS-state income taxes are payable to the franchise
tax board
Who collects federal tax - ANSWERS-IRS only collects federal taxes
How long is the contractor liable for patent or visible defects - ANSWERS-patent is a visible
defect for which the contractor is liable for up to 4 years
how long is the contractor liable for latent or structural defects - ANSWERS-latent is an invisible
or structural defect for which the contractor is liable for up to 10 years
account receivable contains? - ANSWERS-retention, which is usually 10%, it is withheld by the
owner from the contract to ensure that the job is done properly and subcontractors are paid.
the retention is recorded in accounts receivable
Questions with Complete Solutions2
How much time does a contractor have to renew his/her license after the expiration date
without retaking the license exam? - ANSWERS-The contractor is not required to retake the
exam if the license is renewed within 5 years, from the expiration date
If the contractor unlawfully removes asbestos he/she may be fined.... - ANSWERS-minimum of
$1,000 and or have his/her license revoked or suspended
when you collect sales tax from your customers goods, to which agency do you report and pay
sales tax collected? - ANSWERS-sales tax is a state tax and is payable to the state board of
equalization.
Who do you pay state income tax to - ANSWERS-state income taxes are payable to the franchise
tax board
Who collects federal tax - ANSWERS-IRS only collects federal taxes
How long is the contractor liable for patent or visible defects - ANSWERS-patent is a visible
defect for which the contractor is liable for up to 4 years
how long is the contractor liable for latent or structural defects - ANSWERS-latent is an invisible
or structural defect for which the contractor is liable for up to 10 years
account receivable contains? - ANSWERS-retention, which is usually 10%, it is withheld by the
owner from the contract to ensure that the job is done properly and subcontractors are paid.
the retention is recorded in accounts receivable
