Nevada CMS (law) Exam Questions and
Correct Answers
Question 1
What accounting method records income when the service occurs and expense when
they are incurred?
Correct Answer
Accrual Method
Question 2
Does your NSCB license permit you to do work on the repairing or constructing of
mobile homes?
a. Yes, if work is under $1,000
b. No. You need a Manufactured Housing license
c. Yes, if you are a NV General
d. Yes, if work is under $500
Correct Answer
No. You need a Manufactured Housing license
Question 3
A general building contractor is bidding a drywall job, is this legal?
a. Yes, since the drywall is on the generals test
b. He is not allowed to do the drywall
c. Yes, he can bid on anything on a building
d. As long as drywall is included in more than 2 unrelated trades or crafts
Correct Answer
As long as drywall is included in more than 2 unrelated trades or crafts
Page 1 of 22
,Question 4
Which of the following statements correctly describes the cash method of
accounting?
Correct Answer
Income / expenses are recorded at the time they are received / paid
Question 5
Current assets can be converted into cash within one operating cycle or ____
a. 7 days
b. 30 days
c. 6 months
d. 1 year
Correct Answer
1 year
Question 6
An application has ____ chances to take the state exam, after the last attempt the
application becomes void.
a. 2
b. 3
c. 4
d. 5
Correct Answer
3
Question 7
What term identifies money withheld from progress payments to the contractor and
paid after the completion of the project?
Correct Answer
Retainage
Page 2 of 22
, Question 8
What trade can a general building contractor not perform without additional specialty
licensing?
a. Electrical
b. Plumbing
c. Fire Sprinklers
d. All of the above
Correct Answer
All of the above
Question 9
You have _____ days to replace a qualified employee.
a. 10
b. 30
c. 60
d. 90
Correct Answer
30
Question 10
If a contractor knowingly enters into a contract with an unlicensed contractor making
it the second offense, what disciplinary action shall the board impose?
a. the board shall impose a fee of not less than $1,000 and not more than $50,000
and may suspend the license for 6 months
b. the board shall impose a fee of not less than $5,000 and not more than $50,000
and may suspend the license for a 1 year
c. the board shall impose a fee of not less than $10,000 and not more than $50,000
and may revoke the license
d. the board can only file criminal charges
Correct Answer
the board shall impose a fee of not less than $5,000 and not more than $50,000 and
may suspend the license for a 1 year
Page 3 of 22
Correct Answers
Question 1
What accounting method records income when the service occurs and expense when
they are incurred?
Correct Answer
Accrual Method
Question 2
Does your NSCB license permit you to do work on the repairing or constructing of
mobile homes?
a. Yes, if work is under $1,000
b. No. You need a Manufactured Housing license
c. Yes, if you are a NV General
d. Yes, if work is under $500
Correct Answer
No. You need a Manufactured Housing license
Question 3
A general building contractor is bidding a drywall job, is this legal?
a. Yes, since the drywall is on the generals test
b. He is not allowed to do the drywall
c. Yes, he can bid on anything on a building
d. As long as drywall is included in more than 2 unrelated trades or crafts
Correct Answer
As long as drywall is included in more than 2 unrelated trades or crafts
Page 1 of 22
,Question 4
Which of the following statements correctly describes the cash method of
accounting?
Correct Answer
Income / expenses are recorded at the time they are received / paid
Question 5
Current assets can be converted into cash within one operating cycle or ____
a. 7 days
b. 30 days
c. 6 months
d. 1 year
Correct Answer
1 year
Question 6
An application has ____ chances to take the state exam, after the last attempt the
application becomes void.
a. 2
b. 3
c. 4
d. 5
Correct Answer
3
Question 7
What term identifies money withheld from progress payments to the contractor and
paid after the completion of the project?
Correct Answer
Retainage
Page 2 of 22
, Question 8
What trade can a general building contractor not perform without additional specialty
licensing?
a. Electrical
b. Plumbing
c. Fire Sprinklers
d. All of the above
Correct Answer
All of the above
Question 9
You have _____ days to replace a qualified employee.
a. 10
b. 30
c. 60
d. 90
Correct Answer
30
Question 10
If a contractor knowingly enters into a contract with an unlicensed contractor making
it the second offense, what disciplinary action shall the board impose?
a. the board shall impose a fee of not less than $1,000 and not more than $50,000
and may suspend the license for 6 months
b. the board shall impose a fee of not less than $5,000 and not more than $50,000
and may suspend the license for a 1 year
c. the board shall impose a fee of not less than $10,000 and not more than $50,000
and may revoke the license
d. the board can only file criminal charges
Correct Answer
the board shall impose a fee of not less than $5,000 and not more than $50,000 and
may suspend the license for a 1 year
Page 3 of 22
