CSLB PRACTICE TEST WITH ALL CORRECT &
VERIFIED ANSWERS (UPDATED TO PASS)
The costs of running your business, including office expenses, etc., is called:
a. Direct Costs
b. Overhead
c. A liability
d. Accrual Correct answer-b. Overhead
Which government agency collects State Unemployment Tax?
a. Employment Development Department
b. County Unemployment Office
c. Franchise Tax Board
d. Internal Revenue Service Correct answer-a. Employment Development Department
Who does not need a California Contractor's State License?
a. Someone who repairs or maintains an air-conditioning unit or heat-pump unit.
b. Someone who installs mobile-homes
c. Someone who digs wells on the property of others
d. Sale or installation of finished products that do not become a fixed part of the structure Correct
answer-d. Sale or installation of finished products that do not become a fixed part of the structure
Which of the following is not part of a Home-Improvement Contract?
a. Mechanic's Lien Warning
b. Notice of Cancellation
c. Twenty-Day Preliminary Notice
d. All of the above. Correct answer-c. Twenty-Day Preliminary Notice
Prime Contractor must pay subcontractor when?
a. 10-days after Prime-contractor received payment
b. When Prime-contractor receives withheld retention monies
c. 30-days after completion
d. As soon as subcontractor completes the work Correct answer-a. 10-days after Prime-contractor
received payment
The Contractor's Surety Bond is necessary for most contractors to obtain their license. This bond is in
the amount of:
a. $2,500
b. $7,000
c. $15,000
d. $25,000 Correct answer-c. $15,000
How long with the CSLB hold a contractor responsible for observable defects?
a. 5-years
, b. 4-years
c. 3-years
d. 2-years Correct answer-b. 4-years
In which of the following circumstances must a licensed contractor provide their license number?
a. On all contracts
b. On all advertising
c. On all "20-day Preliminary Notices"
d. All of the above Correct answer-d. All of the above
How many classifications can a Responsible Managing Employee apply for?
a. One
b. Two
c. None
d. As many as the RME can qualify for Correct answer-d. As many as the RME can qualify for
If a contractor includes a provision in a contract for the use of private arbitration and a dispute
between the owner and the contractor makes arbitration necessary, who will bear the cost of the
private arbitration?
a. The California Contractor's License Board
b. The property owner
c. The prime contractor
d. The property owner and the prime contractor will split the cost of the private arbitration Correct
answer-d. The property owner and the prime contractor will split the cost of the private arbitration
State Disability Insurance is paid by:
a. Employees only
b. Employers only
c. Both employers and employees
d. Neither employers nor employees Correct answer-a. Employees only
A contractor estimates labor and materials costs for a job to be $2,500.00. Allowing for 15%
overhead and 18% profit, what should the total bid be?
a. $3,222.00
b. $3,731.00
c. $3,018.00
d. $3,825.00 Correct answer-b. $3,731.00
Who is responsible for determining when the project is complete?
a. The prime contractor
b. The building inspector
c. The subcontractor
d. The owner or his/her agent Correct answer-d. The owner or his/her agent
Which of the following need a California Contractor's License?
VERIFIED ANSWERS (UPDATED TO PASS)
The costs of running your business, including office expenses, etc., is called:
a. Direct Costs
b. Overhead
c. A liability
d. Accrual Correct answer-b. Overhead
Which government agency collects State Unemployment Tax?
a. Employment Development Department
b. County Unemployment Office
c. Franchise Tax Board
d. Internal Revenue Service Correct answer-a. Employment Development Department
Who does not need a California Contractor's State License?
a. Someone who repairs or maintains an air-conditioning unit or heat-pump unit.
b. Someone who installs mobile-homes
c. Someone who digs wells on the property of others
d. Sale or installation of finished products that do not become a fixed part of the structure Correct
answer-d. Sale or installation of finished products that do not become a fixed part of the structure
Which of the following is not part of a Home-Improvement Contract?
a. Mechanic's Lien Warning
b. Notice of Cancellation
c. Twenty-Day Preliminary Notice
d. All of the above. Correct answer-c. Twenty-Day Preliminary Notice
Prime Contractor must pay subcontractor when?
a. 10-days after Prime-contractor received payment
b. When Prime-contractor receives withheld retention monies
c. 30-days after completion
d. As soon as subcontractor completes the work Correct answer-a. 10-days after Prime-contractor
received payment
The Contractor's Surety Bond is necessary for most contractors to obtain their license. This bond is in
the amount of:
a. $2,500
b. $7,000
c. $15,000
d. $25,000 Correct answer-c. $15,000
How long with the CSLB hold a contractor responsible for observable defects?
a. 5-years
, b. 4-years
c. 3-years
d. 2-years Correct answer-b. 4-years
In which of the following circumstances must a licensed contractor provide their license number?
a. On all contracts
b. On all advertising
c. On all "20-day Preliminary Notices"
d. All of the above Correct answer-d. All of the above
How many classifications can a Responsible Managing Employee apply for?
a. One
b. Two
c. None
d. As many as the RME can qualify for Correct answer-d. As many as the RME can qualify for
If a contractor includes a provision in a contract for the use of private arbitration and a dispute
between the owner and the contractor makes arbitration necessary, who will bear the cost of the
private arbitration?
a. The California Contractor's License Board
b. The property owner
c. The prime contractor
d. The property owner and the prime contractor will split the cost of the private arbitration Correct
answer-d. The property owner and the prime contractor will split the cost of the private arbitration
State Disability Insurance is paid by:
a. Employees only
b. Employers only
c. Both employers and employees
d. Neither employers nor employees Correct answer-a. Employees only
A contractor estimates labor and materials costs for a job to be $2,500.00. Allowing for 15%
overhead and 18% profit, what should the total bid be?
a. $3,222.00
b. $3,731.00
c. $3,018.00
d. $3,825.00 Correct answer-b. $3,731.00
Who is responsible for determining when the project is complete?
a. The prime contractor
b. The building inspector
c. The subcontractor
d. The owner or his/her agent Correct answer-d. The owner or his/her agent
Which of the following need a California Contractor's License?
