1
California State Contractors License
Law And Business Test Study Guide|
Certified Exam Questions And
Answers
If the contractor has no employees, worker's comp is not required. However he or
she must file what, which is available online. - correct-answer -An exemption form
What two things should be considered when buying insurance? - correct-answer -
Cost and coverage
Protects the suppliers, subcontractors and laborers in case the contractor does not
pay them what is owed under the contract. - correct-answer -Payment Bond
Protects the owner in case the job is abandoned or the work proves to be
unacceptable. - correct-answer -Performance Bond
, 2
Which bond covers both payments and completion of the contract? - correct-
answer -Contract Bond
Money owed to the owner or owners of a company. - correct-answer -Equity
debts which are due within the year - correct-answer -Current liabilities
debts which are due beyond one year, like mortgages or a bank loan. - correct-
answer -Long Term Liabilities
Cash or other property that can be easily converted to cash. - correct-answer -
Liquid asset
Money remaining after all expenses and taxes have been paid. - correct-answer -
Net Income
A written agreement to repay borrowed money. - correct-answer -Note, or loan
, 3
Total income before expenses - correct-answer -Revenue
Long term tangible property; building, land, computers - correct-answer -Fixed
asset
Costs that remain the same each month; office rent or a truck payment. - correct-
answer -Fixed cost
Accounting Equation - correct-answer -Assets = liabilities + equity
Property with a cash value that is owned by a business or individual. - correct-
answer -Asset
This sheet in your accounting process is the expanded version of the accounting
equation, Assets = Liabilities + Equity - correct-answer -Balance Sheet
The five steps of the basic accounting cycle - correct-answer -1. Gather all
transactions, 2. Record the transactions in the General Journal, 3. Post
California State Contractors License
Law And Business Test Study Guide|
Certified Exam Questions And
Answers
If the contractor has no employees, worker's comp is not required. However he or
she must file what, which is available online. - correct-answer -An exemption form
What two things should be considered when buying insurance? - correct-answer -
Cost and coverage
Protects the suppliers, subcontractors and laborers in case the contractor does not
pay them what is owed under the contract. - correct-answer -Payment Bond
Protects the owner in case the job is abandoned or the work proves to be
unacceptable. - correct-answer -Performance Bond
, 2
Which bond covers both payments and completion of the contract? - correct-
answer -Contract Bond
Money owed to the owner or owners of a company. - correct-answer -Equity
debts which are due within the year - correct-answer -Current liabilities
debts which are due beyond one year, like mortgages or a bank loan. - correct-
answer -Long Term Liabilities
Cash or other property that can be easily converted to cash. - correct-answer -
Liquid asset
Money remaining after all expenses and taxes have been paid. - correct-answer -
Net Income
A written agreement to repay borrowed money. - correct-answer -Note, or loan
, 3
Total income before expenses - correct-answer -Revenue
Long term tangible property; building, land, computers - correct-answer -Fixed
asset
Costs that remain the same each month; office rent or a truck payment. - correct-
answer -Fixed cost
Accounting Equation - correct-answer -Assets = liabilities + equity
Property with a cash value that is owned by a business or individual. - correct-
answer -Asset
This sheet in your accounting process is the expanded version of the accounting
equation, Assets = Liabilities + Equity - correct-answer -Balance Sheet
The five steps of the basic accounting cycle - correct-answer -1. Gather all
transactions, 2. Record the transactions in the General Journal, 3. Post
