CSLB EXAM LAW AND BUSINESS QUESTIONS WITH ALL
CORRECT & 100% VERIFIED ANSWERS|ALREADY
GRADED A+
How much time does a contractor have to renew his/her license after the expiration date without
retaking the license exam? Correct answer-The contractor is not required to retake the exam if the
license is renewed within 5 years, from the expiration date
If the contractor unlawfully removes asbestos he/she may be fined.... Correct answer-minimum of
$1,000 and or have his/her license revoked or suspended
when you collect sales tax from your customers goods, to which agency do you report and pay sales
tax collected? Correct answer-sales tax is a state tax and is payable to the state board of
equalization.
Who do you pay state income tax to Correct answer-state income taxes are payable to the
franchise tax board
Who collects federal tax Correct answer-IRS only collects federal taxes
How long is the contractor liable for patent or visible defects Correct answer-patent is a visible
defect for which the contractor is liable for up to 4 years
how long is the contractor liable for latent or structural defects Correct answer-latent is an invisible
or structural defect for which the contractor is liable for up to 10 years
account receivable contains? Correct answer-retention, which is usually 10%, it is withheld by the
owner from the contract to ensure that the job is done properly and subcontractors are paid. the
retention is recorded in accounts receivable
which is considered a fixed cost to a contractor
a. electricity cost
b.part time wages
c.office rent
d. construction material Correct answer-office rent! this is usually a fixed amount that is due
monthly. office supplies and construction material is purchased only when necessary, therefore it is a
variable cost
what is considered a variable cost?
office rent
construction material
accounts payable
stockholders equity Correct answer-construction material
employers must report and pay federal unemployment (FUTA) tax to which agency? Correct
answer-FUTA is federal unemployment tax and it is payable to the IRS
CORRECT & 100% VERIFIED ANSWERS|ALREADY
GRADED A+
How much time does a contractor have to renew his/her license after the expiration date without
retaking the license exam? Correct answer-The contractor is not required to retake the exam if the
license is renewed within 5 years, from the expiration date
If the contractor unlawfully removes asbestos he/she may be fined.... Correct answer-minimum of
$1,000 and or have his/her license revoked or suspended
when you collect sales tax from your customers goods, to which agency do you report and pay sales
tax collected? Correct answer-sales tax is a state tax and is payable to the state board of
equalization.
Who do you pay state income tax to Correct answer-state income taxes are payable to the
franchise tax board
Who collects federal tax Correct answer-IRS only collects federal taxes
How long is the contractor liable for patent or visible defects Correct answer-patent is a visible
defect for which the contractor is liable for up to 4 years
how long is the contractor liable for latent or structural defects Correct answer-latent is an invisible
or structural defect for which the contractor is liable for up to 10 years
account receivable contains? Correct answer-retention, which is usually 10%, it is withheld by the
owner from the contract to ensure that the job is done properly and subcontractors are paid. the
retention is recorded in accounts receivable
which is considered a fixed cost to a contractor
a. electricity cost
b.part time wages
c.office rent
d. construction material Correct answer-office rent! this is usually a fixed amount that is due
monthly. office supplies and construction material is purchased only when necessary, therefore it is a
variable cost
what is considered a variable cost?
office rent
construction material
accounts payable
stockholders equity Correct answer-construction material
employers must report and pay federal unemployment (FUTA) tax to which agency? Correct
answer-FUTA is federal unemployment tax and it is payable to the IRS
