Questions with Detailed Rationales 3 Versions
Complete Study Guide for 2026
EXAM OVERVIEW
Feature Details
Administering Agency Virginia Board for Contractors (DPOR)
Exam Provider PSI
Format Multiple-choice, open-book
Virginia Portion 24 items; 18 pass; 48 minutes
General Portion 50 items; 35 pass; 100 minutes
Advanced Portion 24 items; 17 pass; 60 minutes
Reference Materials NASCLA Guide, USBC, IRC, OSHA 1926
,Question 1
Under the amended Board for Contractors Regulations effective September 1, 2025,
what is the minimum experience requirement for a qualified individual seeking a Class C
contractor license?
A) Two years
B) One year
C) Three years
D) Six months
Answer: B) One year
Rationale: The amendments to 18VAC50-22-40 reduce the experience requirement for a
Class C contractor license applicant to one year in the classification or specialty service for
which licensure is sought, instead of the previous two-year requirement.
Question 2
What is the current maximum payment limit from the Virginia Contractor Transaction
Recovery Fund per claimant?
A) $20,000
B) $25,000
C) $30,000
D) $50,000
**Answer: C) $30,000***
*Rationale: Recent amendments to the Virginia Contractor Transaction Recovery Act
increased the recovery fund payment limits from $20,000 to $30,000 per claimant.
Question 3
What is the maximum penalty per day for a contractor who undertakes work without the
proper class of license in Virginia?
A) $250
B) $500
C) $1,000
D) $2,500
,**Answer: B) $500***
*Rationale: Under Virginia law, a contractor who undertakes work without the proper class
of license may be assessed a $500 fine per day for each day of violation, plus penalties for
a misdemeanor.
Question 4
What is the primary purpose of contractor licensing in Virginia?
A) To increase state revenue
B) To protect the health and welfare of the public
C) To limit competition
D) To standardize construction costs
Answer: B) To protect the health and welfare of the public
Rationale: The primary purpose of contractor licensing in Virginia is to protect the health
and welfare of the public by ensuring that contractors meet minimum standards of
competency and responsibility.
Question 5
What must all Class A contractor licensure applications include?
A) A business plan
B) Information on the knowledge, skills, and abilities of the applicant
C) A list of all past projects
D) A credit report
Answer: B) Information on the knowledge, skills, and abilities of the applicant
Rationale: All Class A contractor licensure applications must include information on the
knowledge, skills, and abilities of the applicant to demonstrate qualification for licensure.
, Question 6
When a claimant is paid funds from the Contractors Recovery Trust Fund, what happens
to the contractor's license?
A) It is automatically renewed
B) It is suspended until the fund is repaid
C) It is permanently revoked
D) No action is taken
Answer: B) It is suspended until the fund is repaid
Rationale: When a claimant is paid funds from the Contractors Recovery Trust Fund, the
contractor's license is suspended until the contractor repays the fund. This ensures
accountability and protects future claimants.
Question 7
A contractor's financial statement shows a current ratio of 1.2 and a quick ratio of 0.8.
Which of the following actions would most likely improve the quick ratio without
harming the current ratio?
A) Purchasing inventory on credit
B) Selling inventory for cash
C) Taking out a short-term loan
D) Delaying payment to suppliers
Answer: B) Selling inventory for cash
Rationale: The quick ratio excludes inventory from current assets. Selling inventory for
cash converts inventory into cash, which increases the numerator of the quick ratio
(current assets minus inventory) while keeping total current assets the same, thereby
improving the quick ratio without harming the current ratio.
Question 8
Given the following information, what is the firm's debt-to-equity ratio?
Total liabilities: $230,000
Total equity: $150,000