Latest Florida Building Contractor Business/Finance Exams 1, 2 &
3 Each Exam Contains 100 Questions and Correct Verified
Answers/ FL B Contractor Business and Finance Test 2025-2026
Contents
Exam 1 .......................................................................................................................1
Exam 2 .....................................................................................................................13
Exam 3 .....................................................................................................................25
Exam 1
1. An employer has computed the following amounts for its employee Steve during
a week in January: gross wages $500, FICA tax withheld $38.25, Federal Income
Tax withholding $67.25, state Income tax $20, Unemployment tax $24, worker
compensation $5. The company does not provide health insurance, paid vacations,
or any other benefits. The amount of Steve's net pay is: - ANSWER-$374.50
(Gross wages (500-$38.25 for fiancé and $87.25 for Federal and State income tax)
2. A pre-employment physical is paid by? - ANSWER-Employer
3. Current assets DIVIDED BY current liabilities is the - ANSWER-Current ratio
4. Current asset MINUS current liabilities is the - ANSWER-Working capital
5. A customer may cancel a contract at any time prior to midnight of the ____
business day. - ANSWER-3rd
6. Invoices from vendors (suppliers) which are due in 30 days should be credit to
Accounts: - ANSWER-Payable
pg. 1
,7. A company disposes of equipment that it no longer uses in its business. The
amount received by the company is more than the amount the asset is carried at in
accounting records. The company will report a (n) - ANSWER-Gain
8. Net sales minus the Cost of Goods Sold equals - ANSWER-Gross profit
9. Gross profit minus Operating expenses is best defined as - ANSWER-Operating
income
10. The "Notice to Owner" is given in order to: - ANSWER-Let the owner know
that the property can be liened
11. An example of a court-ordered employee withholding is: - ANSWER-Wage
garnishment and child support
12. What is the next step once the building plans are approved? - ANSWER-
Review the plans for errors or corrections
13. Who is responsible for keeping track of change orders? - ANSWER-
Contractor
14. How often should a job supervisor or a responsible managing employee visit
the job site? - ANSWER-Once a day
15. What should you do if you find that work done by a previous contractor is in
violation of the local building code? - ANSWER-Report the violation to the owner
with an estimate for the needed repairs
pg. 2
,16. If a contractor finds a 5" discrepancy on a set of plans. The contractor should: -
ANSWER-Contact the architect or building designer
17. As part of the safety training process, contractors' supervisors are urged to meet
with management on a regular basis. How often must these meetings be held? -
ANSWER-Periodically
18. Who is in charge of safety at a job site? - ANSWER-Contractor
19. Several prospective employees remembered their Social Security numbers but
did not have a card or other documentation. The practice of relying on memorized
Social Security numbers is: - ANSWER-Unacceptable: the actual Social Security
card should have been inspected
20. Which of the following injuries does OSHA require employers to make and
keep records? - ANSWER-Knocked unconscious, suffers burn, develops chronic
allergy from fiberglass insulation exposure
21. Client John pays ACMA Co. $1000 in December for ACME to perform
services for John in 45 days. ACME uses the accrual basis of accounting. In
December ACMA will debit Cash for $1000. What will be the account involved in
the December accounting entry prepared by ACMA: (and what type of account is
it?) - ANSWER-Unearned revenues (Liabilities)
22. Which of the following would not be a current asset? - ANSWER-Land, (Not
accounts receivable, prepaid insurance or supplies)
23. An employer receiving a citation for a serious violation of OSHA regulations
can be assessed a penalty of up to _______ for each violation. - ANSWER-$25000
pg. 3
, 24. Which of the following is not covered by standard contractor's insurance
policies? - ANSWER-Employees tools
25. An employer hires one part-time and two full-time employees. Is the following
scenario lawful if full-time employees are covered by worker's compensation
insurance, but the part-time employees are not? - ANSWER-No, even part-time
employees must be covered
26. An income statement shows: - ANSWER-Revenues and expenses over an
extended period of time
27. A(n) _________ is used to analyze the income and outflow of cash during a
period of time. - ANSWER-Cash flow statement
28. In the cash system of accounting, a transaction is recorded or posted: -
ANSWER-When cash changes hands
29. At the end of each month, data are posted from the bookkeeping journals to
the: - ANSWER-General ledger
30. Which of the following is the best description of "accounts receivable?" -
ANSWER-Money due from customers who have purchased goods or services on
credit
31. An employer must file federal Form 1099-MISC to report payments of ______
or more per calendar year to person not treated as employees for services
performed for the business. - ANSWER-$600
pg. 4
3 Each Exam Contains 100 Questions and Correct Verified
Answers/ FL B Contractor Business and Finance Test 2025-2026
Contents
Exam 1 .......................................................................................................................1
Exam 2 .....................................................................................................................13
Exam 3 .....................................................................................................................25
Exam 1
1. An employer has computed the following amounts for its employee Steve during
a week in January: gross wages $500, FICA tax withheld $38.25, Federal Income
Tax withholding $67.25, state Income tax $20, Unemployment tax $24, worker
compensation $5. The company does not provide health insurance, paid vacations,
or any other benefits. The amount of Steve's net pay is: - ANSWER-$374.50
(Gross wages (500-$38.25 for fiancé and $87.25 for Federal and State income tax)
2. A pre-employment physical is paid by? - ANSWER-Employer
3. Current assets DIVIDED BY current liabilities is the - ANSWER-Current ratio
4. Current asset MINUS current liabilities is the - ANSWER-Working capital
5. A customer may cancel a contract at any time prior to midnight of the ____
business day. - ANSWER-3rd
6. Invoices from vendors (suppliers) which are due in 30 days should be credit to
Accounts: - ANSWER-Payable
pg. 1
,7. A company disposes of equipment that it no longer uses in its business. The
amount received by the company is more than the amount the asset is carried at in
accounting records. The company will report a (n) - ANSWER-Gain
8. Net sales minus the Cost of Goods Sold equals - ANSWER-Gross profit
9. Gross profit minus Operating expenses is best defined as - ANSWER-Operating
income
10. The "Notice to Owner" is given in order to: - ANSWER-Let the owner know
that the property can be liened
11. An example of a court-ordered employee withholding is: - ANSWER-Wage
garnishment and child support
12. What is the next step once the building plans are approved? - ANSWER-
Review the plans for errors or corrections
13. Who is responsible for keeping track of change orders? - ANSWER-
Contractor
14. How often should a job supervisor or a responsible managing employee visit
the job site? - ANSWER-Once a day
15. What should you do if you find that work done by a previous contractor is in
violation of the local building code? - ANSWER-Report the violation to the owner
with an estimate for the needed repairs
pg. 2
,16. If a contractor finds a 5" discrepancy on a set of plans. The contractor should: -
ANSWER-Contact the architect or building designer
17. As part of the safety training process, contractors' supervisors are urged to meet
with management on a regular basis. How often must these meetings be held? -
ANSWER-Periodically
18. Who is in charge of safety at a job site? - ANSWER-Contractor
19. Several prospective employees remembered their Social Security numbers but
did not have a card or other documentation. The practice of relying on memorized
Social Security numbers is: - ANSWER-Unacceptable: the actual Social Security
card should have been inspected
20. Which of the following injuries does OSHA require employers to make and
keep records? - ANSWER-Knocked unconscious, suffers burn, develops chronic
allergy from fiberglass insulation exposure
21. Client John pays ACMA Co. $1000 in December for ACME to perform
services for John in 45 days. ACME uses the accrual basis of accounting. In
December ACMA will debit Cash for $1000. What will be the account involved in
the December accounting entry prepared by ACMA: (and what type of account is
it?) - ANSWER-Unearned revenues (Liabilities)
22. Which of the following would not be a current asset? - ANSWER-Land, (Not
accounts receivable, prepaid insurance or supplies)
23. An employer receiving a citation for a serious violation of OSHA regulations
can be assessed a penalty of up to _______ for each violation. - ANSWER-$25000
pg. 3
, 24. Which of the following is not covered by standard contractor's insurance
policies? - ANSWER-Employees tools
25. An employer hires one part-time and two full-time employees. Is the following
scenario lawful if full-time employees are covered by worker's compensation
insurance, but the part-time employees are not? - ANSWER-No, even part-time
employees must be covered
26. An income statement shows: - ANSWER-Revenues and expenses over an
extended period of time
27. A(n) _________ is used to analyze the income and outflow of cash during a
period of time. - ANSWER-Cash flow statement
28. In the cash system of accounting, a transaction is recorded or posted: -
ANSWER-When cash changes hands
29. At the end of each month, data are posted from the bookkeeping journals to
the: - ANSWER-General ledger
30. Which of the following is the best description of "accounts receivable?" -
ANSWER-Money due from customers who have purchased goods or services on
credit
31. An employer must file federal Form 1099-MISC to report payments of ______
or more per calendar year to person not treated as employees for services
performed for the business. - ANSWER-$600
pg. 4
