VA HIC LICENSE UPDATED PRACTICE
SOLUTION BUNDLED REVIEW SHEET
TESTED ANSWERS
⩥ A contractor puts in a claim under a comprehensive standard general
liability policy. The policy has no additional coverage, riders, or floaters,
and has a $500 deductible per occurrence. The claim is for a job-site
accident that caused $2,000 of injuries to employees, $1,800 of injuries
to a pedestrian, $2,300 damage to the contractor's equipment, and $1,750
loss of project materials purchased by the contractor. The insurance
company is liable for.
Answer: $1,300.
⩥ An insurer offers the contractor a 20% per year reduction in premiums
if the contractor has a defined safety program in place. The insurer's
standard rates are $8 per $1,000 of coverage. The contractor has
$300,000 in coverage. How much in premiums will the contractor save
over a 3-year period by having a defined safety program in place?.
Answer: Between $1,001 and $1,500.
⩥ Who oversees compliance with Material Safety Data Sheets?.
Answer: OSHA
,⩥ What is the total gross compensation and employment status for a
carpenter, given the following information? A contractor hires a
carpenter to do the finish work for a 10-home project. The carpenter is to
be paid $16 per hour. The contractor provides all materials and
equipment, such as a table saw. The carpenter provides all of his own
hand tools. The contractor and the carpenter agree that all of the homes
are to be completed within 60 8-hour working days, without overtime.
The contractor provides the carpenter with a schedule of the order in
which homes are to be worked on. The contractor provides a helper to
assist the carpenter. The contractor sets the work schedule each day. The
carpenter spends 600 hours to complete this project, including 120 hours
of overtime..
Answer: The carpenter is an employee and is owed $10,560 for the
project.
⩥ What is the gross pay of a non-exempt employee who works 45 hours
during a holiday week, and receives 8 hours additional pay for the
holiday? The employee earns $12.50 per hour..
Answer: $693.75
⩥ A contractor pays a workers' compensation rate of $0.08 per $100 of
office employee payroll, $0.15 per $100 of field supervisor payroll, and
$0.26 per $100 of field employee payroll. Total office employee payroll
for the year is $25,000. Total field supervisor payroll is $48,000. Total
field employee payroll is $225,000. The contractor receives a discount of
5% of total premiums for having a safety program in place. The total
workers' compensation for the year is.
, Answer: more than $600
⩥ A non-exempt employee of a contractor covered by the Fair Labor
Standards Act works 60 hours during a workweek. The agreement is to
pay the employee $400.00 each week regardless of the numbers of hours
worked. What should be the employee's gross pay for this workweek?.
Answer: $700.50
⩥ What is the total project overhead for a project that lasts 3 months and
has the following costs? Labor is $4,000; materials are $9,500;
equipment rentals are $1,200; superintendent's annual salary is $36,000;
office rent is $800 per month; and office utilities are $375 per month..
Answer: Less than $12,000.
⩥ What is the total value of current assets for an accrual basis company
that has the following? Checking account cash balance is $4,800;
materials inventory for work-in-progress is $4,200; a pick-up truck that
cost $12,460 - paid for with $2,460 in cash and a note for $10,000 - and
is used 100% in the business; accounts receivable is $5,700; suppliers'
accounts payable is $6,300; other accounts payable is $2,200; and
quarterly income tax payment due is $1,180..
Answer: Between $12,000 and $16,000.
⩥ Where would depreciation of equipment first be entered?.
Answer: General journal.
SOLUTION BUNDLED REVIEW SHEET
TESTED ANSWERS
⩥ A contractor puts in a claim under a comprehensive standard general
liability policy. The policy has no additional coverage, riders, or floaters,
and has a $500 deductible per occurrence. The claim is for a job-site
accident that caused $2,000 of injuries to employees, $1,800 of injuries
to a pedestrian, $2,300 damage to the contractor's equipment, and $1,750
loss of project materials purchased by the contractor. The insurance
company is liable for.
Answer: $1,300.
⩥ An insurer offers the contractor a 20% per year reduction in premiums
if the contractor has a defined safety program in place. The insurer's
standard rates are $8 per $1,000 of coverage. The contractor has
$300,000 in coverage. How much in premiums will the contractor save
over a 3-year period by having a defined safety program in place?.
Answer: Between $1,001 and $1,500.
⩥ Who oversees compliance with Material Safety Data Sheets?.
Answer: OSHA
,⩥ What is the total gross compensation and employment status for a
carpenter, given the following information? A contractor hires a
carpenter to do the finish work for a 10-home project. The carpenter is to
be paid $16 per hour. The contractor provides all materials and
equipment, such as a table saw. The carpenter provides all of his own
hand tools. The contractor and the carpenter agree that all of the homes
are to be completed within 60 8-hour working days, without overtime.
The contractor provides the carpenter with a schedule of the order in
which homes are to be worked on. The contractor provides a helper to
assist the carpenter. The contractor sets the work schedule each day. The
carpenter spends 600 hours to complete this project, including 120 hours
of overtime..
Answer: The carpenter is an employee and is owed $10,560 for the
project.
⩥ What is the gross pay of a non-exempt employee who works 45 hours
during a holiday week, and receives 8 hours additional pay for the
holiday? The employee earns $12.50 per hour..
Answer: $693.75
⩥ A contractor pays a workers' compensation rate of $0.08 per $100 of
office employee payroll, $0.15 per $100 of field supervisor payroll, and
$0.26 per $100 of field employee payroll. Total office employee payroll
for the year is $25,000. Total field supervisor payroll is $48,000. Total
field employee payroll is $225,000. The contractor receives a discount of
5% of total premiums for having a safety program in place. The total
workers' compensation for the year is.
, Answer: more than $600
⩥ A non-exempt employee of a contractor covered by the Fair Labor
Standards Act works 60 hours during a workweek. The agreement is to
pay the employee $400.00 each week regardless of the numbers of hours
worked. What should be the employee's gross pay for this workweek?.
Answer: $700.50
⩥ What is the total project overhead for a project that lasts 3 months and
has the following costs? Labor is $4,000; materials are $9,500;
equipment rentals are $1,200; superintendent's annual salary is $36,000;
office rent is $800 per month; and office utilities are $375 per month..
Answer: Less than $12,000.
⩥ What is the total value of current assets for an accrual basis company
that has the following? Checking account cash balance is $4,800;
materials inventory for work-in-progress is $4,200; a pick-up truck that
cost $12,460 - paid for with $2,460 in cash and a note for $10,000 - and
is used 100% in the business; accounts receivable is $5,700; suppliers'
accounts payable is $6,300; other accounts payable is $2,200; and
quarterly income tax payment due is $1,180..
Answer: Between $12,000 and $16,000.
⩥ Where would depreciation of equipment first be entered?.
Answer: General journal.
