CSLB Practice Test Latest Update
2025/2026 GRADED A+
The costs of running your business, including office expenses, etc., is called:
a. Direct Costs
b. Overhead
c. A liability
d. Accrual - correct answerb. 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 answera. 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 answerd. 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 answerc. 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 answera. 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 answerc. $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 answerb. 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 answerd. 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 answerd. 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 answerd. 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
2025/2026 GRADED A+
The costs of running your business, including office expenses, etc., is called:
a. Direct Costs
b. Overhead
c. A liability
d. Accrual - correct answerb. 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 answera. 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 answerd. 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 answerc. 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 answera. 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 answerc. $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 answerb. 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 answerd. 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 answerd. 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 answerd. 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
