An employer identification number (EIN) is required for all entity types EXCEPT - ANSWER
Sole Proprietorship
The profits from which type of business are NOT "pass through" to the owners and taxed as
ordinary income? - ANSWER C Corporation
Corporate minutes must be maintained annually for which of the following entity types? -
ANSWER S Corporation
Which of following is true of a limited partner? - ANSWER A limited partner's financial re-
sponsibility is limited to business liabilities
Which of the following entity types is not subject to self-employment tax? - ANSWER S
Corporation
What is the name of the surety law adopted by most states and local governments? - AN-
SWER The Little Miller Act
If a general contractor hires a subcontractor who has no workers compensation policy for
part of a project, and an employee of the subcontractor is injured, who is responsible for the
injured employee? - ANSWER The General Contractor
If you're remodeling a house that was built before 1978, you must - ANSWER Provide a
lead information sheet to the inhabitant
What is the minimum required level of general liability insurance coverage for a Utah con-
tractor? - ANSWER $100,000 per incident / $300,000 total
1
, If a contractor finds asbestos on a remodeling project, they should - ANSWER Have a cer-
tified asbestos contractor remove the asbestos
If a person fails to file a timely preliminary notice, they may not claim a construction lien for
construction work the person provides to the project before how many days after the pre-
liminary notice is filed? - ANSWER 5 Days
A lien claimant shall file an action to enforce a lien within how many days of filing a written
notice to hold and claim a lien? - ANSWER 180 Days
Before providing a final lien release to a project owner, the contractor should request which
of the following documents from the subcontractors and suppliers? - ANSWER Final Lien
Releases
If there are multiple liens claimed on the same property, which of the following groups is on
equal footing for satisfaction of the lien? - ANSWER Laborers and Materialmen
Which of the following best defines the "cost principle" in accounting? - ANSWER All
transactions are recorded at COST rather than VALUE
What is long-term or non current liability? - ANSWER A debt that extends longer than 1
yr
What is an advantage of the Percentage Completion Method? - ANSWER It allows a com-
pany to show income over the life of the project.
Cash Basis Accounting records income: - ANSWER When cash is received
The income statement does not include: - ANSWER Cash
2
Sole Proprietorship
The profits from which type of business are NOT "pass through" to the owners and taxed as
ordinary income? - ANSWER C Corporation
Corporate minutes must be maintained annually for which of the following entity types? -
ANSWER S Corporation
Which of following is true of a limited partner? - ANSWER A limited partner's financial re-
sponsibility is limited to business liabilities
Which of the following entity types is not subject to self-employment tax? - ANSWER S
Corporation
What is the name of the surety law adopted by most states and local governments? - AN-
SWER The Little Miller Act
If a general contractor hires a subcontractor who has no workers compensation policy for
part of a project, and an employee of the subcontractor is injured, who is responsible for the
injured employee? - ANSWER The General Contractor
If you're remodeling a house that was built before 1978, you must - ANSWER Provide a
lead information sheet to the inhabitant
What is the minimum required level of general liability insurance coverage for a Utah con-
tractor? - ANSWER $100,000 per incident / $300,000 total
1
, If a contractor finds asbestos on a remodeling project, they should - ANSWER Have a cer-
tified asbestos contractor remove the asbestos
If a person fails to file a timely preliminary notice, they may not claim a construction lien for
construction work the person provides to the project before how many days after the pre-
liminary notice is filed? - ANSWER 5 Days
A lien claimant shall file an action to enforce a lien within how many days of filing a written
notice to hold and claim a lien? - ANSWER 180 Days
Before providing a final lien release to a project owner, the contractor should request which
of the following documents from the subcontractors and suppliers? - ANSWER Final Lien
Releases
If there are multiple liens claimed on the same property, which of the following groups is on
equal footing for satisfaction of the lien? - ANSWER Laborers and Materialmen
Which of the following best defines the "cost principle" in accounting? - ANSWER All
transactions are recorded at COST rather than VALUE
What is long-term or non current liability? - ANSWER A debt that extends longer than 1
yr
What is an advantage of the Percentage Completion Method? - ANSWER It allows a com-
pany to show income over the life of the project.
Cash Basis Accounting records income: - ANSWER When cash is received
The income statement does not include: - ANSWER Cash
2
