NASCLA Contractor Exam Study Guide
Sole Proprietorship - correct answer Which form of business ownership is least regulated?
Partnership - correct answer under which form of business organization are all investors fully liable for all
debts of the business?
S corporation - correct answer The owner who is looking for maximum protection from personal liability
will choose this
Leaving something out - correct answer What is the worst possible error in estimating?
Income Statement - correct answer Which document reports after-expenses earnings?
Depreciation - correct answer What is the term used for the method of allocating the cost of an asset
over its useful life?
168 Hours - correct answer What is the number of hours in a defined Fair Labor Standards Act (FLSA)
work week?
State income tax - correct answer Which tax is deducted solely from employees wages?
Employers summary of W-2's issued to employees - correct answer What is form W-3?
4 years - correct answer The state employment commission requires that all payroll records be
maintained for?
Federal unemployment Tax - correct answer What employment tax is paid solely by the employer?
, 4 years - correct answer How long must federal employment tax records be kept?
establish a bases for future estimates - correct answer One useful outcome of cost analysis is to?
Bonds - correct answer Which of the following is NOT a company overhead cost?
Construction loan - correct answer Which of the following is a project overhead cost?
Allowances - correct answer What project cost do not need to be estimated?
Unit Price - correct answer Which estimating method is most often used when materials and labor are
hard to determine?
These suppliers must be competitive - correct answer All local contractors should expect their material
cost to be similar because...
Basis for the bid - correct answer What information do project documents ALWAYS provide?
contract - correct answer A legally binding mutual agreement between parties
Read and understand the contract - correct answer What action is essential before signing a contract?
Written agreements prevail oral agreements - correct answer Which is an established legal guideline for
contracts?
The standard form of agreement - correct answer Which contract documents MUST be signed by both
the owner and the contractor?
TURNKEY - correct answer What type of contract assigns the prime contractor responsibility for
developing the entire project?
Sole Proprietorship - correct answer Which form of business ownership is least regulated?
Partnership - correct answer under which form of business organization are all investors fully liable for all
debts of the business?
S corporation - correct answer The owner who is looking for maximum protection from personal liability
will choose this
Leaving something out - correct answer What is the worst possible error in estimating?
Income Statement - correct answer Which document reports after-expenses earnings?
Depreciation - correct answer What is the term used for the method of allocating the cost of an asset
over its useful life?
168 Hours - correct answer What is the number of hours in a defined Fair Labor Standards Act (FLSA)
work week?
State income tax - correct answer Which tax is deducted solely from employees wages?
Employers summary of W-2's issued to employees - correct answer What is form W-3?
4 years - correct answer The state employment commission requires that all payroll records be
maintained for?
Federal unemployment Tax - correct answer What employment tax is paid solely by the employer?
, 4 years - correct answer How long must federal employment tax records be kept?
establish a bases for future estimates - correct answer One useful outcome of cost analysis is to?
Bonds - correct answer Which of the following is NOT a company overhead cost?
Construction loan - correct answer Which of the following is a project overhead cost?
Allowances - correct answer What project cost do not need to be estimated?
Unit Price - correct answer Which estimating method is most often used when materials and labor are
hard to determine?
These suppliers must be competitive - correct answer All local contractors should expect their material
cost to be similar because...
Basis for the bid - correct answer What information do project documents ALWAYS provide?
contract - correct answer A legally binding mutual agreement between parties
Read and understand the contract - correct answer What action is essential before signing a contract?
Written agreements prevail oral agreements - correct answer Which is an established legal guideline for
contracts?
The standard form of agreement - correct answer Which contract documents MUST be signed by both
the owner and the contractor?
TURNKEY - correct answer What type of contract assigns the prime contractor responsibility for
developing the entire project?
