Contractors Business/Law Exam CORRECT
100%
If an employer's Federal Payroll Tax liability is $1000 how may they pay taxes? - ANSWER quarterly
How many employees does it take for the Fair Labor Act to be applied? - ANSWER 1
What accounting method records income when the service occurs and expense when they are incurred?
- ANSWER Accrual Method
What do the General Conditions of a contract do? - ANSWER Outline roles of the owner, architect, and
engineer.
You are purchasing an insurance policy with a monthly premium of $300. If you implement a safety
program you can save 10% on the cost of the policy. The safety program costs $400 to start and $15 a
month to maintain it. What would be the net difference in cost over three year period with a safety
program? - ANSWER Net saving of $140
Written construction contract change order should include a description of the modification to be made,
any change in contract time and - ANSWER The change in the contract dollar amount
Which of the following is a written agreement between the owner and contractor to change the
contract? - ANSWER change order
What term identifies money withheld from progress payments to the contractor and paid after the
completion of the project? - ANSWER Retainage
When is final payment due? - ANSWER Final inspection, acceptance by owner and submittal of proper
documentation must occur
, After hiring a disabled person, which of the following can't you do, according to the American with
Disabilities Act? - ANSWER Require a medical examination of just the person you suspect is disabled.
The percentage of completion method of accounting does what - ANSWER recognizes profit as it is
earned
Workers are on a job site where noise is very loud. Who is supposed to supply the workers with ear
protection? - ANSWER contractor (employer)
Where can you get accurate information about tax deposit schedules? - ANSWER IRS Publication Circular
E
Which of the following statements correctly describes the cash method of accounting? - ANSWER
Income / expenses are recorded at the time they are received / paid
What type of workplace insurance provides all the benefits required by law for employees' who are
killed or injured as a result of their employment - ANSWER Workers Compensation
If an employee is covered by Workers Compensation in the state of Utah and is doing a job in Colorado
and gets injured, are they covered by Utah Workers Compensation? - ANSWER Yes, the Utah fund would
cover the employee but the employer should look into getting coverage in state of Colorado also.
After the division receives an application for licensure, how many days does the division have to decide
whether to issue a license to that applicant? - ANSWER 5 days# NASLCA 2nd edition pg E-34 58-55-403
With a Residential Small Commercial license (R100) how many units can build for multi family units? -
ANSWER a four plex
What will happen to the contractor if he fails to notify the Division of Professional and Occupational
Licensing of a disassociation. - ANSWER The license will be suspended.
100%
If an employer's Federal Payroll Tax liability is $1000 how may they pay taxes? - ANSWER quarterly
How many employees does it take for the Fair Labor Act to be applied? - ANSWER 1
What accounting method records income when the service occurs and expense when they are incurred?
- ANSWER Accrual Method
What do the General Conditions of a contract do? - ANSWER Outline roles of the owner, architect, and
engineer.
You are purchasing an insurance policy with a monthly premium of $300. If you implement a safety
program you can save 10% on the cost of the policy. The safety program costs $400 to start and $15 a
month to maintain it. What would be the net difference in cost over three year period with a safety
program? - ANSWER Net saving of $140
Written construction contract change order should include a description of the modification to be made,
any change in contract time and - ANSWER The change in the contract dollar amount
Which of the following is a written agreement between the owner and contractor to change the
contract? - ANSWER change order
What term identifies money withheld from progress payments to the contractor and paid after the
completion of the project? - ANSWER Retainage
When is final payment due? - ANSWER Final inspection, acceptance by owner and submittal of proper
documentation must occur
, After hiring a disabled person, which of the following can't you do, according to the American with
Disabilities Act? - ANSWER Require a medical examination of just the person you suspect is disabled.
The percentage of completion method of accounting does what - ANSWER recognizes profit as it is
earned
Workers are on a job site where noise is very loud. Who is supposed to supply the workers with ear
protection? - ANSWER contractor (employer)
Where can you get accurate information about tax deposit schedules? - ANSWER IRS Publication Circular
E
Which of the following statements correctly describes the cash method of accounting? - ANSWER
Income / expenses are recorded at the time they are received / paid
What type of workplace insurance provides all the benefits required by law for employees' who are
killed or injured as a result of their employment - ANSWER Workers Compensation
If an employee is covered by Workers Compensation in the state of Utah and is doing a job in Colorado
and gets injured, are they covered by Utah Workers Compensation? - ANSWER Yes, the Utah fund would
cover the employee but the employer should look into getting coverage in state of Colorado also.
After the division receives an application for licensure, how many days does the division have to decide
whether to issue a license to that applicant? - ANSWER 5 days# NASLCA 2nd edition pg E-34 58-55-403
With a Residential Small Commercial license (R100) how many units can build for multi family units? -
ANSWER a four plex
What will happen to the contractor if he fails to notify the Division of Professional and Occupational
Licensing of a disassociation. - ANSWER The license will be suspended.
