florida business and finance practice exam 2 125 questions
TRANSCRIPT
125 Questions and Answers
1. Using straight line depreciation, the annual allowable depreciation for a tractor trailer worth $23,000
with an estimated useful life of ten years and anticipated salvage value of $2,000 is ___________.
A. $2,100
B. $2,300
C. $1,800
D. $2,500
A. They are generally created for a single business transaction
B. Generally, they must adhere to a written joint venture agreement
C. Both A and B
D. None of the above
3. ___________, a type of financial and business record, are NOT required to be maintained by a licensed
contractor for the preceding three years.
A. Telephone records
B. Employee timecards
D. Minutes of corporate meetings
4. After receiving a citation from the Board, a licensee has __________ days to dispute the citation before
it becomes a final order.
A. 15
B. 60
C. 30
D. 10
5. When a contractor performs obligations after receiving additional clarification that he requested from
the architect for perceived needs for additional costs, when is the contractor liable for damages resulting
from the work, he performed which is consistent with errors or omissions in the contract documents.
A. The contractor would not be liable
B. In all instances as the contractor should have refused to do the work if he felt the documents
included errors or omissions
C. Only if the work performed proved to be inconsistent with local building codes
D. Only if the work was performed by subcontractors working for the contractor
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A. FUTA Taxable Wages to the IRS
B. Wages for Federal Unemployed Trainees
C. Wages for Workers Compensation rate calculations
D. None of the above
7. According to child labor laws, a seventeen-year-old work ___________ during the school session.
A. 40 Hours
B. 30 Hours
C. No more than 10 hours in any one day
D. 20 Hours
A. Assets, liabilities, net worth
B. Profit, loss, net worth
C. Assets, debts, receivables
D. Income, collections, overhead
9. A reserve of bad debt is __________.
A. A reduction in your current assets
B. A general ledger entry that reflects a budgeted reserve for bad debts
C. A loss of cash on hand
D. Both A and B
10. It is the contractor’s responsibility should he discover concealed or unknown conditions subsurface or
otherwise to _____________.
A. Provide notice to the Owner within 10 days of discovery of the conditions
B. Provide notice to the Architect and Owner within 10 days of discovery of the conditions
C. Provide notice to the Architect and Owner within 14 days of discovery of the conditions
D. Advise the building inspector within 3 days of perceived unsafe conditions
11. __________ is a way cash can be stolen by taking sums from one customer account and applying it to
another’s and writing off the amount of cash taken as bad debt.
A. Falsifying sales records
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12. What is the maximum number of times a licensee may go through the mediation process pertaining to
complaints made against him without Board approval?
A. The mediation process can only be used once every five years
B. No more than three times
C. There is no limit to the number of times mediation can by employed
D. The mediation process can only be used once every ten years
13. What guaranty does a contractor make through the issuance of a surety bond?
A. He will complete the project as per the contract documents
B. He will hold the architect harmless for delays
C. He will assign any benefits awarded under the bond to his subcontractors
D. He will reimburse the surety company if he fails to perform according to contract
14. Which of the following describes a Payroll Register?
A. It is the same as a check register but includes details related to payroll checks
B. It is a system used to record only salaried workers wages
C. It is used to transfer check amounts to the General Ledger
D. It is the best way to control payroll costs
15. The minimum levels of coverage of public liability and personal damage insurance that all state
contractor licensees must carry is ____________.
A. That they are the same for all trades and General Contractors
B. $500,000 liability and $100,000 property damage
C. $100,000 liability and $25,000 property damage for all trades other than General and
Building Contractors and Electrical or Alarm contractors
D. No minimum requirements just suggested coverages
16. A(an) __________ asset is goodwill.
A. Intangible
B. Current
C. Fixed
D. Contingent
17. __________ expenses are considered direct costs rather than variable overhead expenses.
A. Labor
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18. What information will a bank require to approve financing to a business?
A. How much money is needed
B. How long will the money be needed
C. How will the loan be repaid
D. All of the above
19. Which of the following is not true regarding the ownership of drawings, specifications and other
instruments of service?
A. The architect and their consultants are deemed to be the authors
B. The owner retains ownership as they paid to have the documents prepared
C. Suppliers shall not own or claim a copyright interest on any of these documents
D. The architect retains ownership of these documents
20. At time of renewal, an applicant submitting proof of completed classroom continuing education, must
provide proof of a minimum of __________ actual time of classroom instruction.
A. 14 hours
C. 11 hours
D. 50 minutes
A. This method is more accurate than any other method
B. Sales should not be accrued
C. Sales are a variable asset and therefore an accrued posting
D. No cash changes hands so therefore it is an accrued item
22. What two accounting tools are the most efficient way to monthly track accounts payable?
A. Check registers for both current monthly and previous monthly billings
B. Profit & Loss and Balance Sheet
C. Two separate checking accounts
D. Account Payable and Account Aging registers
23. The owner has __________ days to provide a bidder to a contract proof that the owner has made
financial arrangements to fulfill their obligations under the contact.
A. 5
B. 7
C. 10
D. 3
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24. A construction firm should seek professional services from, a(an) _________ when developing a budget,
cash-flow forecasts or employee benefits packages.
A. Certified Pubic Bookkeeper
D. Attorney
25. The maximum number of days after filing any mediation proceeding involving a contractor that a
dispute may be stayed is __________.
A. 60
C. 45 days
D. 30 days unless agreed to by both parties
26. Which of the following is not correct about Project Schedules?
A. They should be informally reviewed and updated every 30 days
B. They should be jointly prepared with a material and equipment schedule
C. They should include enough detail to allow adequate project control
D. The schedule progress should be posted at least weekly
27. A __________ ratio best illustrates the overall health of a business.
A. Capital to Current Liabilities
B. Debt to Asset Ratio
C. Working Capital to Funded Debt
D. Current Ratio
28. Which of the following are not ways to prevent bad debt in the form of open collectables?
A. Ask for credit references from new clients
B. Do not take on any new clients until you can collect all current outstanding debts
C. Do not extend credit unless a credit application is on file
D. Call customers to ask them to commit to a date to pay their outstanding sums
29. Which of the following is not considered a Fixed Overhead Expense?
A. Salaried employee working at the corporate office
B. Small tools
30. What does an Aging List accomplish?
A. It indicates the percentage of receivables that are current
B. It indicates the percentage of receivables that are uncollectable
C. It is used to control the collections of accounts receivables
D. All of the above
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31. ___________ costs are freight charges on material shipped to a job by the supplier.
A. Direct
B. Incidental
C. Indirect
D. Overhead
32. Which of the following is an allowable rule regarding approved continuing education hours?
A. 16 hours of continuing education are required at the time of renewal
B. 60 minutes constitutes each hour of required continuing education
C. Up to a maximum of 50% of the continuing education may be fulfilled through pro bono
services to the indigent or underserved populations
D. Continuing education can be performed in the classroom or via interactive distance learning
33. When is an employer liable for the payment of state re-employment tax?
A. When he has had at least one employee for at least one day of work
B. When he has paid at least $1,000 in wages and has had at least one employee for a minimum
of ten weeks
C. When he has paid at least $1,500 in wages and has had at least one employee for a minimum
of twenty weeks
D. When they have laid off at least one employee in a quarter
34. The minimum satisfactory current ratio of current assets to current liabilities is __________.
A. 3 to 1
B. 1 to 1
C. 2 to 1
D. 4 to 1
35. Which of the following is not true regarding Form 940, Employers Annual Unemployment Tax Return?
A. It is used to report and pay federal unemployment tax
B. It is used to report and pay state unemployment tax on an annual basis
C. It is not required if you have no employees
D. The amount of tax paid is based on the number of employees and wages
36. A contractor must pay the subcontractor after ____________ days the contractor is paid by the owner.
A. 10
B. 7
C. 5
D. 14
37. In what instance is form OSHA 301 required?
A. Any time an injury or illness is reported on OSHA 300
B. Only if an injury resulting in death occurs
C. Only if an injury is considered of lesser severity
D. No such OSHA form exists
38. Which of the following approaches is associated with Network Analysis?
A. Critical Path Analysis (CPA)
B. Critical Path Method (CPM)
C. Project Evaluations and Review Technique (PERT)
D. All above are approaches associated with Network Analysis
39. Privity in lien law means __________.
A. The names of all parties to a contract are to remain private and confidential
B. The relationship between two or more parties to a contract
C. All parties to a contract that have lien rights
D. The requirement to mediate in the case of a contract dispute
40. __________ are the two methods of allowable depreciation.
A. Straight line and Curved line
B. Declining Balance and Increasing Value
C. Increasing Balance and Curved line
D. Straight line and Declining balance
41. A condition giving rise to a dispute occurs on May 1st and is discovered by the contractor on May 5th, the
contractor must initiate the claim by __________.
A. May 21
B. May 22
C. May 26
D. May 27
A. Percentage - of - Completion
D. Earned Income
43. What is one of the rules that may be provided regarding approved continuing education hours?
A. 16 hours of continuing education are required at the time of renewal
B. 60 minutes constitutes each hour of required continuing education
C. Continuing education is required to be completed every three years
D. Continuing education can be performed in the classroom or via interactive distance learning
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44. The __________ method allows a business to take advantage of discounts offered by their suppliers for
early payment of invoices.
45. Contractors must maintain complete financial, sales and business records __________.
A. For the immediately preceding five years
B. For the immediately preceding ten years
C. For the immediately preceding seven years
D. For the immediately preceding three years
46. Which of the following is true when a temporary certificate of registration is allowed for an organization
who lost its qualifying agent?
A. The organization may proceed with contracts for incomplete work projects
B. There is no provision for a temporary certificate of registration, and all must work must cease
until a new qualifying agent is approved
C. The organization may proceed with both new and incomplete contracts
D. None of the above are true
47. At least _________ days before the end of a licensure cycle, the department shall forward a licensure
renewal notification to an active or inactive licensee at the licensee’s last known address of record or
email address provided to the department.
A. 60
B. 30
C. 90
D. 120
48. Which of the following are not considered taxable wages and are not included when calculating
unemployment benefits paid by an employer?
A. Wages paid to employees working at a convention
B. Excess employee discounts
D. Bonuses based on performance
49. What is the distinction between a work-related injury and an illness?
A. An injury requires immediate medical attention
B. An illness does not require entry on OSHA logs
C. They are considered the same for the purpose of OSHA reporting
D. Illnesses do not result from instantaneous events
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A. First in, first out
B. First in, discount last
C. Last in, first out
D. Both A & C
51. ___________ is used to report and pay monthly sales tax collected.
A. DR 15-CS Sales and Use Tax Report
B. DR-405 Tangible Personal Property Tax Report
C. ST 10- TX Sales Tax Report
D. Corporate Quarterly Sales Tax Report
52. Compounded interest is __________.
A. Computed monthly and added to the principal
B. Computed annually and added to the principal
C. Computed monthly and subtracted from the principal
D. Computed monthly and credited towards the principal
53. Which of the following is not true regarding an Employer-Multi-unit Report?
A. It is required if an employer conducts business in more than one location in Florida
B. It is filed on a quarterly basis
C. It is mailed separately from the Employers Quarterly Report
D. It is mailed with the Employer’s Quarterly Report
54. When should a sling angle be kept at greater than 45 degrees?
A. Only when lifting a 1000 pound or greater load
B. Only when using multiple slings to lift a load
C. Only when sling legs are at an angle of 60” vertical
D. Whenever possible
A. Plans
C. Elevations
D. Diagrams
56. The cost related to change orders includes all the following except __________.
A. Rental cost of machinery
B. Cost of field office personnel
C. Cost to rent hand tools
D. All the costs above may be included in a change order
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57. The bidder by making a bid represents all the following except ____________.
A. The bidder has visited the site
B. The bidder has read and understands all the contract documents
C. The bid includes materials he believes will result in a lower build cost
D. The bidder is familiar with local conditions
58. __________ are the two ratios most significant in analyzing overhead.
A. Variables Overhead Expense to Sales and Variable Overhead to Receivables
B. Fixed Overhead to Sales and Variable Overhead to Profit
C. Variable Overhead Expense to Sales and Fixed Overhead to Sales
D. Variable Overhead to Fixed Overhead and Fixed Overhead Receivables
59. What is the difference between the Accrual and Cash accounting methods?
A. Only the cash method includes accounts receivables
B. The cash method is more accurate
C. The cash method only records transactions when money changes hands
D. These are the same methods referred to by either name
60. For what purpose does the state use the $4.00 included in the application renewal fee?
A. Prosecution of illegal construction activities
B. Reimburse the public for damages caused by contractors
C. Used to fund construction projects in underserved communities
D. Used to fund continuing education initiatives
61. The purpose of the Management Privatization Act is to __________.
A. Establish a system for the protection of employee’s private information
B. Provide a corporate veil of protections for corporate managers
C. Outsource management activities to private organizations
D. Create a model for contracting with nonprofit organizations
62. A __________ insurance form provides coverage for theft of property insurance.
A. Special form
B. Broad form
C. Loss form
D. Theft rider form
63. The duties of making sure results do not differ from those originally planned is an example of
a ______________responsibility of the business manager.
A. directing
B. controlling
C. assigning
D. standardizing
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64. At what rate will an employer be billed for an outstanding re-employment tax obligation and after what
time period of delinquency?
A. In the employee breakroom
B. At the location where employees report to work
C. In plain view of OSHA inspectors
D. At each location if multiple locations exist
66. The purpose of preparing an Income Statement is __________.
A. To borrow construction funds or secure personal credit
B. To divide information into various categories to prepare the inventory flow statement
C. To show control of costs and expenses, the volume of business and income yield
D. To predict debts over a specific time period
67. What information do you not need to calculate the unit cost of equipment per hour?
A. Repair and maintenance cost
B. OSHA productivity standards
C. Estimated life of equipment
D. Nonproductive hours of operation
68. When a customer account is uncollectable how do you reflect the recorded income?
A. No action is required until the customer files bankruptcy
B. File a lien and take them to court
C. Rebook the income as a special transaction
D. Reverse the income previously recorded
69. What must an owner do if a change of ownership occurs for an entity with a Fictitious Name?
A. Advise the Department of Professional Regulations within 30 days of change
B. Establish a new Fictious Name within 45 days
C. Record a cancelation and registration of the name within 30 days of change
D. Advise the Department of Professional Regulations within 10 days of change
70. An applicant must have at least __________ years’ experience for a limited license.
A. Ten
B. Five
C. Twenty
D. Fifteen
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71. Which is of the following is not true regarding the requirement to notify the Board?
A. Notification of address change must be made within 15 days
B. Notification of address change must be made within 30 days
C. Notification of termination of affiliation of a qualifying agent with a business organization
within 60 days
D. Notification of any changes required on the application for qualification of a business
organization within 45 days
72. When using Declining Balance depreciation what is depreciated on a 200 percent declining balance with
a remaining balance of an average of four years?
A. Light trucks
C. Computers and office equipment
D. Residential property
73. When a contractor performs three categories of work how many qualifying agents are required?
A. Only one qualifying agent is required per business
B. Three, one for each category of work
C. Two, one for the core business and one for the total of work categories
D. Four, one for the core business and one for each of the work categories
74. The purpose of the subsidiary ledger is to __________.
A. Track all subsidized income sources
B. Keep the main ledger uncluttered and provide useful information
C. Track expenses that are billed
D. Track back ordered inventory
75. When selling an item to a company that is not tax exempt for $200 and the sales tax rate is 7% what will
be reflected on the journal?
A. Two separate credit entries, one of $200 and the other for $14.00
B. One credit entry of $214.00
C. One credit entry of $200 and one debit entry of $14.00
D. Two separate debit entries of $200 and $14.00
76. Which of the following are eligible for limited licenses?
A. Limited licenses may be granted to out of state contractors after a hurricane
B. There is no provision for the issuance of limited licenses
C. Limited licenses may only be obtained by specialty contractors
D. Limited licenses may be granted to retired professionals in good standing to serve the
indigent and underserved
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77. Within how many days must an entity that loses its qualify agent obtain another qualifier?
A. Thirty days
B. Forty-five days
C. Sixty days
D. Ninety days
78. When the Board designates mediation for a licensee, how many days following resolution of the
complaint by the complainant and the licensee must the mediator be advised of the resolution?
A. 14 days after contact by the mediator
B. 21 days after contact by the mediator
C. 30 days after contact by the mediator
D. 60 days after contact by the mediator
79. Proper inventory control planning can do which of the following?
A. Increase accounts receivables
C. Allow multiple jobs of different scope
D. Eliminate unneeded working capital expenditures
80. Which of the following is not true concerning a S Corporation?
A. They have multiple classes of stock
B. 20% or more of revenue must be domestically generated
C. Only estates or individual can be shareholders
D. It must be a domestic entity
81. For what period must examination scores for each applicant be maintained by the Department?
A. No less than three years immediately following the examination
B. No less than two years immediately following the examination
C. No less than one year immediately following the examination
D. No less than five years immediately following the examination
82. ___________ is the purpose of the accrual accounting method.
A. To record revenue when earned
B. To record expense when incurred
C. To track the timely payment of accounts receivables
D. Both A and B
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83. Who assumes responsibility for the accuracy of the shop drawings and samples once submitted by the
contractor to the architect for review?
A. The architect
B. Review by the architect does not release the contractor from the responsibility
C. Both the contractor and architect since they have both reviewed the submissions
D. The owner as well as his contractor and architect since they all have reviewed the
submissions
A. Fixed, current and tangible
B. Fixed, intangible and current
C. Fixed, variable, tangible
D. Fixed, variable and current
85. __________ is the act of setting up a piece of equipment on your general ledger.
A. Establishing the depreciation schedule
B. Establishing the amortization schedule
C. Converting a long-term asset to a current asset
D. Capitalizing the expense
A. Commission
B. Advertising
A. They are closely regulated
B. Stockholders are not exempt from liability
C. They are taxed only once
D. Fringe benefits are tax deducible
88. In what time period must the Board issue a citation after the filing of a complaint against a licensee?
A. Thirty days
B. Two months
C. One year
D. Six months
89. What can a high inventory ratio indicate about your business?
A. You practice First In, First Out inventory controls
B. Your inventory is too low and could adversely affect sales
C. Your average inventory is too high
D. You inventory levels are higher than those of your competitors
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90. Which of the following accounting methods is used to allocate costs and expenses incurred to a project to
determine if the budget is met?
A. Project cost method
91. Who prepares and signs all change orders?
A. Only the architect is required to prepare and sign change orders
B. The architect prepares and the owner signs off on the change
C. The architect prepares and signs and then the owner and contractor sign
D. The contractor prepares and the owner and architect sign \
92. Which of the following steps are included in the preparation of a company’s payroll?
A. Determining each employees’ gross earnings
B. Determining each employee’s deductions
C. Calculating the employer’s associated payroll expenses
D. All the above
93. When is it a good idea to remove a fully depreciated asset from your book?
A. At the end of its economic life
B. When you can afford to buy additional but not replacement equipment
C. Only when the equipment is sold, abandoned or traded
D. When you have exhausted all tax credits
94. The Department can __________ with the $5.00 fee that is included in the current licensee fee.
A. Educate the public regarding unlicensed activity
B. Transfer the funds to the State of Florida’s general budget account
C. Subsidize the application fee for applicants from the indigent community
D. Reimburse the public when damaged by unlicensed workers
95. Which of the following is true about depreciation?
A. It only applies to property that appreciates in value
B. You cannot depreciate intangible property
C. You may change the method by which you calculate depreciation with your Accountant’s
written explanation to the IRS
D. Obsolescence is of no consequence when determining how to depreciate assets
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96. How many days prior to the date established for payment shall the contractor submit a request for payment
and to whom?
B. 14 days submitting to the architect
C. 10 days submitting to the owner for payment
D. 10 days submitting to the architect for payment
97. Which of the following are reasons to maintain employee timecards?
A. Employees can use them to file their taxes with the IRS
B. Can be used in unemployment disputes
C. They can be used to calculate annual bonus amounts
D. The IRS requires they be kept for 5 years
98. How long is a Fictious Name valid for and when do they expire?
A. 3 years and expire on December 31st of the third year
B. 5 years and expire on December 31st of the fifth year
C. 10 years and expire on the anniversary date of filing
D. They never expire nor need renewing if the entity remains active
99. Which one of the following is not accomplished through good inventory controls?
A. Reduces the need for storage
B. Reduces taxes and insurance and other costs
C. Reduces exposure of materials to theft
D. Reduces the need to backorder inventory
100. The current ratio is calculated by __________.
A. Adding cash and accounts receivable and dividing by liabilities
B. Dividing current liabilities by current assets
C. Dividing current assets by current liabilities
D. Comparing the total loan debt to current income
101. The __________ lists all checks cashed and who cashed them.
A. Cash Register
B. Check Ledger
C. Check Register
D. Subsidiary Ledger
102. __________ are the minimum levels of coverage of public liability and property damage insurance General
Contractors must carry.
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103. OSHA records are to be located __________ when employees are not associated with a fixed
establishment.
B. At field offices or mobile base operation locations
C. At the corporate office
D. Where the employees report to work each day
104. Which of the following are not required recordable injuries?
A. Injuries requiring first aid treatment only
B. Removing foreign items from the eye with tweezers
C. Use of prescription medications
D. Application of bandages by medical personnel
105. Which of the following are not the owner’s responsibility to pay?
A. Easements
B. Use or occupancy of permanent structures
C. Permits and fees assigned to the contractor under the contract documents
D. Permanent changes to existing facilities
106. To whom and on what schedule shall bonds related to a bid be delivered by the bidder?
A. To the architect no later than three days after contract execution
B. To the architect no later than five days after contract execution
C. To the owner no later than five days after contract execution
D. To the owner no later than three days after contract execution
107. What is an example of an incentive discount offered to customers to pay open invoices?
A. 2% - 10- days, net 30
B. Never offer a discount and insist your customers pay the full price
C. 10% off on all orders over $1,000
D. None of the above
108. What penalty is imposed for failure or refusal of an employer or carrier to report any form or notice
associated with a death as required by Chapter 440, Workers Compensation Laws?
A. Fine not to exceed $1000
B. Fine not to exceed $1500
C. Fine not to exceed $500
D. Fine not to exceed $500 for the first failure and not to exceed $2000 for each subsequent
failure
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109. When preparing an estimate, __________ would be included as a fixed overhead expense.
A. Equipment costs
D. Material costs
A. A policy statement regarding safety
B. Safety Rules
C. Workers’ Compensation Guidelines
D. Employee Orientation program
111. Which of the following is not true regarding posting a Notice of Commencement?
A. When a loan exists, it is the contractor’s responsibly to post the notice
B. It may be posted no sooner than 90 days prior to the start of work at the site
C. The owner is obligated to post a copy at the site
D. The posted notice always needs to remain on site
112. __________ must be kept separate from other assets when calculating depreciation.
A. Land
C. Truck and Autos
D. On site equipment
113. Under what circumstance may a foreign trained professional be allowed to take the examination for
construction licensing?
A. If the applicant immigrated to the US for political reasons
B. If the applicant successfully completed an approved course prior to 1990
C. If the applicant immigrated to the US for political reason from a county located in the
Western Hemisphere lacking diplomatic relations with the US
D. There is no special circumstance under which an applicant may take the exam and they must
adhere to the same rules as all other applicants
114. When should you provide an incentive discount to customers based on receivables?
A. When they can refer you other business
B. When you want to increase sales
C. When you want them to pay their open invoice quickly
D. When they have an “A” credit rating
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115. When a subcontractor defaults on work in accordance with agreement with a contractor which of the
following are allowable remedies for the contractor?
A. The contactor may correct the default if the subcontractor has failed to do so within 10 days
after the subcontractor received notice from the contractor
B. Architect may hire a new subcontractor if the subcontractor has failed to correct the default
within 5 days after receipt of notice from the contractor
C. Contactor may correct the default if the subcontractor has failed to do so within 5 days after
the subcontractor received notice from the contractor
D. Architect may hire a new subcontractor if the subcontractor has failed to correct the default
within 10 days after receipt of notice from the contractor
116. The total maximum allowable penalty for an employer who committed a willful or repeated violation of
OSHA regulations and failed to comply with OSHA mandated posting requirements is __________.
A. $148,431
B. $136,942
C. $149,413
D. $137,180
117. Which of the following should be considered when deciding on the man-hour range to use when creating
an estimate?
C. Skill and experience of the craftsman
D. All the above
118. How many copies of the contract documents must the owner provide the contractor?
A. Two signed originals and one copy
B. One signed original and one copy
C. One signed original and one copy
D. One
119. The contractor will submit a certificate for payments within __________ days after the work is complete.
A. 7
B. 10
C. 3
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120. Where and for what period must OSHA 300/300A and any supplementary reports be maintained by the
employer?
A. Retained in the corporate headquarters office for 5 calendar years following the end of the
year to which they relate
B. Retained in the corporate headquarters office for 3 calendar years following the end of the
year to which they relate
C. Retained in each establishment for 5 calendar years following the end of the year to which
they relate
D. Retained in each establishment for 3 calendar years following the end of the year to which
they relate
121. Unless otherwise provided for in the contract documents, the contractor will pay for which of the
following?
A. It is the owner’s responsibility to pay for all permits, not the contractor
B. Building permits, fees, inspections by the local building department
C. Only permits when issued in their name excluding work performed by contractors
D. Only building permits
122. Which of the following does not affect the productivity rate of equipment?
A. Experience of the operator
B. Overruns of Equipment
D. Permissible speeds
123. Which of the following is not true regarding filing a Notice to Owner?
A. Must be filed before commencing or no later than 45 days after completing work
B. Must be filed before the owner’s disbursement of final payment
C. Must be filed before commencing or no later than 45 days after commencing work
D. Must be filed regardless of the method of payment by the owner
124. Which of the following must the contractor make available at the site?
A. Change orders, product data and samples
B. Change orders, product data, samples and proof of liability coverage
C. Contract documents and proof of liability coverage
D. None of the above, these are the responsibility of the architect to make available
125. Real turnover is an example of a __________ ratio.
A. Combined
B. Current
C. Accrual
D. Balanced
( − )
=
$23,000 - $2,000 = $21,000
$21,000 ÷ 10 = $2,100
2017: 1-12
2017: 2-20, 2-90
4. C Florida Statute 455 455.224(1)
5. A AIA Document A201, 2017 3.2.4 Index: Claims and Disputes
6. A Florida Contractors Manual 3-48
7. B Florida Contractors Manual 5-32
8. A Builders Guide to Accounting 17
9. D Builders Guide to Accounting 68
10. C AIA Document A201, 2017 3.7.4
11. C Builders Guide to Accounting 181
12. B Florida Statute 455 455.2235(4)
13. D Florida Contractors Manual 4-12
14. A Builders Guide to Accounting 130
15. C Florida Contractors Manual 2021: 2-16, 2-131
2017: 2-19, 2-157
18. D Florida Contractors Manual 3-73
19. B AIA Document A201, 2017 1.5
20. B Florida Contractors Manual 2021: 2-73, 489.115(4)(b)1.
2017: 2-82, 489.115(4)(b)1.
24. C Florida Contractors Manual 3-9
25. B AIA Document A201, 2017 15.3.2
26. A Florida Contractors Manual 10-63
27. D Builders Guide to Accounting 268
28. B Builders Guide to Accounting 55
29. B Builders Guide to Accounting 143
30. D Builders Guide to Accounting 46
31. A Builders Guide to Accounting 115
32. D Florida Contractors Manual 2021: 2-17
2017: 2-19
2017: 5-52, 5-284
2017: 1-23
37. A Florida Contractors Manual 7-11
38. D Florida Contractors Manual 10-57
39. B Florida Contractors Manual 2021: Pg. 9-22
2017: Pg. 9-21
2017: 2-19
45. D Florida Contractors Manual 2021: 2-17
2017: 2-20
2017: 2-20, 2-87
48. A Florida Contractors Manual 2021: 5-289
2017: 5-279, 5-292
50. D Builders Guide to Accounting Pg. 120
51. A Florida Contractors Manual 2021: 1-27
2017: 1-23
53. D Florida Contractors Manual 2021: 5-290
2017: 5-292
55. B AIA Document A201, 2017 1.1.5, 3.12
56. C AIA Document A201, 2017 7.3.4 item 4
57. C AIA Document A701, 2018 2.1.1-2.1.4
58. C Builders Guide to Accounting 147, 243
59. C Builders Guide to Accounting 32
60. D Florida Contractors Manual 2021: 2-68
2017: 2-75
63. B Florida Contractors Manual 2021: 1-20
2017: 1-10
2017: 5-297
66. C Builders Guide to Accounting 273
Florida Contractors Manual 3-108
24
2017: 1-15
71. A Florida Contractors Manual 2021: 2-133
2017: 2-159
73. B Florida Contractors Manual 2021: 2-22, 2-76, 2-134
2017: 2-20, 2-87, 2-160
77. C Florida Contractors Manual 2021: 2-133
2017: 2-160
79. D Builders Guide to Accounting 119
80. A Florida Contractors Manual 2021: 1-12
2017: 1-13
83. B AIA Document A201, 2017 4.2.7
84. B Builders Guide to Accounting 252-253
85. D Builders Guide to Accounting 155
86. A Builders Guide to Accounting 141
87. D Florida Contractors Manual 2021: 1-11
2017: 1-13
89. B Builders Guide to Accounting 121
90. C Florida Contractors Manual 3-65, 3-106
91. C AIA Document A201, 2017 7.2.1
92. D Florida Contractors Manual 3-47, 3-48
93. C Builders Guide to Accounting 162
94. A Florida Statute 455 455.2281
25
2017: 1-14
100. C Florida Contractors Manual 3-89
101. C Builders Guide to Accounting 101
102. C Florida Contractors Manual 2021: 2-16, 2-131
2017: 2-19, 2-157
104. A Florida Contractors Manual 7-22, 7-23, 7-24
105. C AIA Document A201, 2017 2.3
106. D AIA Document A701, 2018 7.2
107. A Builders Guide to Accounting 59
108. C Florida Contractors Manual 2021: 6-113
2017: 6-165
110. C Florida Contractors Manual 7-36, 7-37, 7-38
111. A Florida Contractors Manual 2021: 9-12
2017: 9-11
113. C Florida Statute 455 455.218(a)
114. C Builders Guide to Accounting, 59
115. C AIA Document A401, 2017 3.5
26
116. A Florida Contractors Manual 7-31
There are two different answers depending which edition of the book you have:
2021: Per the text, the OSHA civil penalties are as followed:
Willful or Repeated Violation - $134,937
Posting Requirements - $13,494
$134,937 + $13,494 = $148,431
B 2017: Per the text, the OSHA civil penalties are as followed:
Willful or Repeated Violation - $124,471
Posting Requirements - $12,471
$124,471 + $12,471 = $136,942
118. D AIA Document A201, 2017 2.3.6
119. D AIA Document A201, 2017 9.4.1
120. C Florida Contractors Manual 7-16
121. B AIA Document A201, 2017 3.7.1
122. B Florida Contractors Manual 10-27 & 10-28
123. A Florida Contractors Manual 2021: 9-73
2017: 9-76
1. Using straight line depreciation, the annual allowable depreciation for a tractor trailer worth $23,000
with an estimated useful life of ten years and anticipated salvage value of $2,000 is ___________.
A. $2,100
B. $2,300
C. $1,800
D. $2,500
A. They are generally created for a single business transaction
B. Generally, they must adhere to a written joint venture agreement
C. Both A and B
D. None of the above
3. ___________, a type of financial and business record, are NOT required to be maintained by a licensed
contractor for the preceding three years.
A. Telephone records
B. Employee timecards
D. Minutes of corporate meetings
4. After receiving a citation from the Board, a licensee has __________ days to dispute the citation before
it becomes a final order.
A. 15
B. 60
C. 30
D. 10
5. When a contractor performs obligations after receiving additional clarification that he requested from
the architect for perceived needs for additional costs, when is the contractor liable for damages resulting
from the work, he performed which is consistent with errors or omissions in the contract documents.
A. The contractor would not be liable
B. In all instances as the contractor should have refused to do the work if he felt the documents
included errors or omissions
C. Only if the work performed proved to be inconsistent with local building codes
D. Only if the work was performed by subcontractors working for the contractor
2
A. FUTA Taxable Wages to the IRS
B. Wages for Federal Unemployed Trainees
C. Wages for Workers Compensation rate calculations
D. None of the above
7. According to child labor laws, a seventeen-year-old work ___________ during the school session.
A. 40 Hours
B. 30 Hours
C. No more than 10 hours in any one day
D. 20 Hours
A. Assets, liabilities, net worth
B. Profit, loss, net worth
C. Assets, debts, receivables
D. Income, collections, overhead
9. A reserve of bad debt is __________.
A. A reduction in your current assets
B. A general ledger entry that reflects a budgeted reserve for bad debts
C. A loss of cash on hand
D. Both A and B
10. It is the contractor’s responsibility should he discover concealed or unknown conditions subsurface or
otherwise to _____________.
A. Provide notice to the Owner within 10 days of discovery of the conditions
B. Provide notice to the Architect and Owner within 10 days of discovery of the conditions
C. Provide notice to the Architect and Owner within 14 days of discovery of the conditions
D. Advise the building inspector within 3 days of perceived unsafe conditions
11. __________ is a way cash can be stolen by taking sums from one customer account and applying it to
another’s and writing off the amount of cash taken as bad debt.
A. Falsifying sales records
3
12. What is the maximum number of times a licensee may go through the mediation process pertaining to
complaints made against him without Board approval?
A. The mediation process can only be used once every five years
B. No more than three times
C. There is no limit to the number of times mediation can by employed
D. The mediation process can only be used once every ten years
13. What guaranty does a contractor make through the issuance of a surety bond?
A. He will complete the project as per the contract documents
B. He will hold the architect harmless for delays
C. He will assign any benefits awarded under the bond to his subcontractors
D. He will reimburse the surety company if he fails to perform according to contract
14. Which of the following describes a Payroll Register?
A. It is the same as a check register but includes details related to payroll checks
B. It is a system used to record only salaried workers wages
C. It is used to transfer check amounts to the General Ledger
D. It is the best way to control payroll costs
15. The minimum levels of coverage of public liability and personal damage insurance that all state
contractor licensees must carry is ____________.
A. That they are the same for all trades and General Contractors
B. $500,000 liability and $100,000 property damage
C. $100,000 liability and $25,000 property damage for all trades other than General and
Building Contractors and Electrical or Alarm contractors
D. No minimum requirements just suggested coverages
16. A(an) __________ asset is goodwill.
A. Intangible
B. Current
C. Fixed
D. Contingent
17. __________ expenses are considered direct costs rather than variable overhead expenses.
A. Labor
4
18. What information will a bank require to approve financing to a business?
A. How much money is needed
B. How long will the money be needed
C. How will the loan be repaid
D. All of the above
19. Which of the following is not true regarding the ownership of drawings, specifications and other
instruments of service?
A. The architect and their consultants are deemed to be the authors
B. The owner retains ownership as they paid to have the documents prepared
C. Suppliers shall not own or claim a copyright interest on any of these documents
D. The architect retains ownership of these documents
20. At time of renewal, an applicant submitting proof of completed classroom continuing education, must
provide proof of a minimum of __________ actual time of classroom instruction.
A. 14 hours
C. 11 hours
D. 50 minutes
A. This method is more accurate than any other method
B. Sales should not be accrued
C. Sales are a variable asset and therefore an accrued posting
D. No cash changes hands so therefore it is an accrued item
22. What two accounting tools are the most efficient way to monthly track accounts payable?
A. Check registers for both current monthly and previous monthly billings
B. Profit & Loss and Balance Sheet
C. Two separate checking accounts
D. Account Payable and Account Aging registers
23. The owner has __________ days to provide a bidder to a contract proof that the owner has made
financial arrangements to fulfill their obligations under the contact.
A. 5
B. 7
C. 10
D. 3
5
24. A construction firm should seek professional services from, a(an) _________ when developing a budget,
cash-flow forecasts or employee benefits packages.
A. Certified Pubic Bookkeeper
D. Attorney
25. The maximum number of days after filing any mediation proceeding involving a contractor that a
dispute may be stayed is __________.
A. 60
C. 45 days
D. 30 days unless agreed to by both parties
26. Which of the following is not correct about Project Schedules?
A. They should be informally reviewed and updated every 30 days
B. They should be jointly prepared with a material and equipment schedule
C. They should include enough detail to allow adequate project control
D. The schedule progress should be posted at least weekly
27. A __________ ratio best illustrates the overall health of a business.
A. Capital to Current Liabilities
B. Debt to Asset Ratio
C. Working Capital to Funded Debt
D. Current Ratio
28. Which of the following are not ways to prevent bad debt in the form of open collectables?
A. Ask for credit references from new clients
B. Do not take on any new clients until you can collect all current outstanding debts
C. Do not extend credit unless a credit application is on file
D. Call customers to ask them to commit to a date to pay their outstanding sums
29. Which of the following is not considered a Fixed Overhead Expense?
A. Salaried employee working at the corporate office
B. Small tools
30. What does an Aging List accomplish?
A. It indicates the percentage of receivables that are current
B. It indicates the percentage of receivables that are uncollectable
C. It is used to control the collections of accounts receivables
D. All of the above
6
31. ___________ costs are freight charges on material shipped to a job by the supplier.
A. Direct
B. Incidental
C. Indirect
D. Overhead
32. Which of the following is an allowable rule regarding approved continuing education hours?
A. 16 hours of continuing education are required at the time of renewal
B. 60 minutes constitutes each hour of required continuing education
C. Up to a maximum of 50% of the continuing education may be fulfilled through pro bono
services to the indigent or underserved populations
D. Continuing education can be performed in the classroom or via interactive distance learning
33. When is an employer liable for the payment of state re-employment tax?
A. When he has had at least one employee for at least one day of work
B. When he has paid at least $1,000 in wages and has had at least one employee for a minimum
of ten weeks
C. When he has paid at least $1,500 in wages and has had at least one employee for a minimum
of twenty weeks
D. When they have laid off at least one employee in a quarter
34. The minimum satisfactory current ratio of current assets to current liabilities is __________.
A. 3 to 1
B. 1 to 1
C. 2 to 1
D. 4 to 1
35. Which of the following is not true regarding Form 940, Employers Annual Unemployment Tax Return?
A. It is used to report and pay federal unemployment tax
B. It is used to report and pay state unemployment tax on an annual basis
C. It is not required if you have no employees
D. The amount of tax paid is based on the number of employees and wages
36. A contractor must pay the subcontractor after ____________ days the contractor is paid by the owner.
A. 10
B. 7
C. 5
D. 14
37. In what instance is form OSHA 301 required?
A. Any time an injury or illness is reported on OSHA 300
B. Only if an injury resulting in death occurs
C. Only if an injury is considered of lesser severity
D. No such OSHA form exists
38. Which of the following approaches is associated with Network Analysis?
A. Critical Path Analysis (CPA)
B. Critical Path Method (CPM)
C. Project Evaluations and Review Technique (PERT)
D. All above are approaches associated with Network Analysis
39. Privity in lien law means __________.
A. The names of all parties to a contract are to remain private and confidential
B. The relationship between two or more parties to a contract
C. All parties to a contract that have lien rights
D. The requirement to mediate in the case of a contract dispute
40. __________ are the two methods of allowable depreciation.
A. Straight line and Curved line
B. Declining Balance and Increasing Value
C. Increasing Balance and Curved line
D. Straight line and Declining balance
41. A condition giving rise to a dispute occurs on May 1st and is discovered by the contractor on May 5th, the
contractor must initiate the claim by __________.
A. May 21
B. May 22
C. May 26
D. May 27
A. Percentage - of - Completion
D. Earned Income
43. What is one of the rules that may be provided regarding approved continuing education hours?
A. 16 hours of continuing education are required at the time of renewal
B. 60 minutes constitutes each hour of required continuing education
C. Continuing education is required to be completed every three years
D. Continuing education can be performed in the classroom or via interactive distance learning
8
44. The __________ method allows a business to take advantage of discounts offered by their suppliers for
early payment of invoices.
45. Contractors must maintain complete financial, sales and business records __________.
A. For the immediately preceding five years
B. For the immediately preceding ten years
C. For the immediately preceding seven years
D. For the immediately preceding three years
46. Which of the following is true when a temporary certificate of registration is allowed for an organization
who lost its qualifying agent?
A. The organization may proceed with contracts for incomplete work projects
B. There is no provision for a temporary certificate of registration, and all must work must cease
until a new qualifying agent is approved
C. The organization may proceed with both new and incomplete contracts
D. None of the above are true
47. At least _________ days before the end of a licensure cycle, the department shall forward a licensure
renewal notification to an active or inactive licensee at the licensee’s last known address of record or
email address provided to the department.
A. 60
B. 30
C. 90
D. 120
48. Which of the following are not considered taxable wages and are not included when calculating
unemployment benefits paid by an employer?
A. Wages paid to employees working at a convention
B. Excess employee discounts
D. Bonuses based on performance
49. What is the distinction between a work-related injury and an illness?
A. An injury requires immediate medical attention
B. An illness does not require entry on OSHA logs
C. They are considered the same for the purpose of OSHA reporting
D. Illnesses do not result from instantaneous events
9
A. First in, first out
B. First in, discount last
C. Last in, first out
D. Both A & C
51. ___________ is used to report and pay monthly sales tax collected.
A. DR 15-CS Sales and Use Tax Report
B. DR-405 Tangible Personal Property Tax Report
C. ST 10- TX Sales Tax Report
D. Corporate Quarterly Sales Tax Report
52. Compounded interest is __________.
A. Computed monthly and added to the principal
B. Computed annually and added to the principal
C. Computed monthly and subtracted from the principal
D. Computed monthly and credited towards the principal
53. Which of the following is not true regarding an Employer-Multi-unit Report?
A. It is required if an employer conducts business in more than one location in Florida
B. It is filed on a quarterly basis
C. It is mailed separately from the Employers Quarterly Report
D. It is mailed with the Employer’s Quarterly Report
54. When should a sling angle be kept at greater than 45 degrees?
A. Only when lifting a 1000 pound or greater load
B. Only when using multiple slings to lift a load
C. Only when sling legs are at an angle of 60” vertical
D. Whenever possible
A. Plans
C. Elevations
D. Diagrams
56. The cost related to change orders includes all the following except __________.
A. Rental cost of machinery
B. Cost of field office personnel
C. Cost to rent hand tools
D. All the costs above may be included in a change order
10
57. The bidder by making a bid represents all the following except ____________.
A. The bidder has visited the site
B. The bidder has read and understands all the contract documents
C. The bid includes materials he believes will result in a lower build cost
D. The bidder is familiar with local conditions
58. __________ are the two ratios most significant in analyzing overhead.
A. Variables Overhead Expense to Sales and Variable Overhead to Receivables
B. Fixed Overhead to Sales and Variable Overhead to Profit
C. Variable Overhead Expense to Sales and Fixed Overhead to Sales
D. Variable Overhead to Fixed Overhead and Fixed Overhead Receivables
59. What is the difference between the Accrual and Cash accounting methods?
A. Only the cash method includes accounts receivables
B. The cash method is more accurate
C. The cash method only records transactions when money changes hands
D. These are the same methods referred to by either name
60. For what purpose does the state use the $4.00 included in the application renewal fee?
A. Prosecution of illegal construction activities
B. Reimburse the public for damages caused by contractors
C. Used to fund construction projects in underserved communities
D. Used to fund continuing education initiatives
61. The purpose of the Management Privatization Act is to __________.
A. Establish a system for the protection of employee’s private information
B. Provide a corporate veil of protections for corporate managers
C. Outsource management activities to private organizations
D. Create a model for contracting with nonprofit organizations
62. A __________ insurance form provides coverage for theft of property insurance.
A. Special form
B. Broad form
C. Loss form
D. Theft rider form
63. The duties of making sure results do not differ from those originally planned is an example of
a ______________responsibility of the business manager.
A. directing
B. controlling
C. assigning
D. standardizing
11
64. At what rate will an employer be billed for an outstanding re-employment tax obligation and after what
time period of delinquency?
A. In the employee breakroom
B. At the location where employees report to work
C. In plain view of OSHA inspectors
D. At each location if multiple locations exist
66. The purpose of preparing an Income Statement is __________.
A. To borrow construction funds or secure personal credit
B. To divide information into various categories to prepare the inventory flow statement
C. To show control of costs and expenses, the volume of business and income yield
D. To predict debts over a specific time period
67. What information do you not need to calculate the unit cost of equipment per hour?
A. Repair and maintenance cost
B. OSHA productivity standards
C. Estimated life of equipment
D. Nonproductive hours of operation
68. When a customer account is uncollectable how do you reflect the recorded income?
A. No action is required until the customer files bankruptcy
B. File a lien and take them to court
C. Rebook the income as a special transaction
D. Reverse the income previously recorded
69. What must an owner do if a change of ownership occurs for an entity with a Fictitious Name?
A. Advise the Department of Professional Regulations within 30 days of change
B. Establish a new Fictious Name within 45 days
C. Record a cancelation and registration of the name within 30 days of change
D. Advise the Department of Professional Regulations within 10 days of change
70. An applicant must have at least __________ years’ experience for a limited license.
A. Ten
B. Five
C. Twenty
D. Fifteen
12
71. Which is of the following is not true regarding the requirement to notify the Board?
A. Notification of address change must be made within 15 days
B. Notification of address change must be made within 30 days
C. Notification of termination of affiliation of a qualifying agent with a business organization
within 60 days
D. Notification of any changes required on the application for qualification of a business
organization within 45 days
72. When using Declining Balance depreciation what is depreciated on a 200 percent declining balance with
a remaining balance of an average of four years?
A. Light trucks
C. Computers and office equipment
D. Residential property
73. When a contractor performs three categories of work how many qualifying agents are required?
A. Only one qualifying agent is required per business
B. Three, one for each category of work
C. Two, one for the core business and one for the total of work categories
D. Four, one for the core business and one for each of the work categories
74. The purpose of the subsidiary ledger is to __________.
A. Track all subsidized income sources
B. Keep the main ledger uncluttered and provide useful information
C. Track expenses that are billed
D. Track back ordered inventory
75. When selling an item to a company that is not tax exempt for $200 and the sales tax rate is 7% what will
be reflected on the journal?
A. Two separate credit entries, one of $200 and the other for $14.00
B. One credit entry of $214.00
C. One credit entry of $200 and one debit entry of $14.00
D. Two separate debit entries of $200 and $14.00
76. Which of the following are eligible for limited licenses?
A. Limited licenses may be granted to out of state contractors after a hurricane
B. There is no provision for the issuance of limited licenses
C. Limited licenses may only be obtained by specialty contractors
D. Limited licenses may be granted to retired professionals in good standing to serve the
indigent and underserved
13
77. Within how many days must an entity that loses its qualify agent obtain another qualifier?
A. Thirty days
B. Forty-five days
C. Sixty days
D. Ninety days
78. When the Board designates mediation for a licensee, how many days following resolution of the
complaint by the complainant and the licensee must the mediator be advised of the resolution?
A. 14 days after contact by the mediator
B. 21 days after contact by the mediator
C. 30 days after contact by the mediator
D. 60 days after contact by the mediator
79. Proper inventory control planning can do which of the following?
A. Increase accounts receivables
C. Allow multiple jobs of different scope
D. Eliminate unneeded working capital expenditures
80. Which of the following is not true concerning a S Corporation?
A. They have multiple classes of stock
B. 20% or more of revenue must be domestically generated
C. Only estates or individual can be shareholders
D. It must be a domestic entity
81. For what period must examination scores for each applicant be maintained by the Department?
A. No less than three years immediately following the examination
B. No less than two years immediately following the examination
C. No less than one year immediately following the examination
D. No less than five years immediately following the examination
82. ___________ is the purpose of the accrual accounting method.
A. To record revenue when earned
B. To record expense when incurred
C. To track the timely payment of accounts receivables
D. Both A and B
14
83. Who assumes responsibility for the accuracy of the shop drawings and samples once submitted by the
contractor to the architect for review?
A. The architect
B. Review by the architect does not release the contractor from the responsibility
C. Both the contractor and architect since they have both reviewed the submissions
D. The owner as well as his contractor and architect since they all have reviewed the
submissions
A. Fixed, current and tangible
B. Fixed, intangible and current
C. Fixed, variable, tangible
D. Fixed, variable and current
85. __________ is the act of setting up a piece of equipment on your general ledger.
A. Establishing the depreciation schedule
B. Establishing the amortization schedule
C. Converting a long-term asset to a current asset
D. Capitalizing the expense
A. Commission
B. Advertising
A. They are closely regulated
B. Stockholders are not exempt from liability
C. They are taxed only once
D. Fringe benefits are tax deducible
88. In what time period must the Board issue a citation after the filing of a complaint against a licensee?
A. Thirty days
B. Two months
C. One year
D. Six months
89. What can a high inventory ratio indicate about your business?
A. You practice First In, First Out inventory controls
B. Your inventory is too low and could adversely affect sales
C. Your average inventory is too high
D. You inventory levels are higher than those of your competitors
15
90. Which of the following accounting methods is used to allocate costs and expenses incurred to a project to
determine if the budget is met?
A. Project cost method
91. Who prepares and signs all change orders?
A. Only the architect is required to prepare and sign change orders
B. The architect prepares and the owner signs off on the change
C. The architect prepares and signs and then the owner and contractor sign
D. The contractor prepares and the owner and architect sign \
92. Which of the following steps are included in the preparation of a company’s payroll?
A. Determining each employees’ gross earnings
B. Determining each employee’s deductions
C. Calculating the employer’s associated payroll expenses
D. All the above
93. When is it a good idea to remove a fully depreciated asset from your book?
A. At the end of its economic life
B. When you can afford to buy additional but not replacement equipment
C. Only when the equipment is sold, abandoned or traded
D. When you have exhausted all tax credits
94. The Department can __________ with the $5.00 fee that is included in the current licensee fee.
A. Educate the public regarding unlicensed activity
B. Transfer the funds to the State of Florida’s general budget account
C. Subsidize the application fee for applicants from the indigent community
D. Reimburse the public when damaged by unlicensed workers
95. Which of the following is true about depreciation?
A. It only applies to property that appreciates in value
B. You cannot depreciate intangible property
C. You may change the method by which you calculate depreciation with your Accountant’s
written explanation to the IRS
D. Obsolescence is of no consequence when determining how to depreciate assets
16
96. How many days prior to the date established for payment shall the contractor submit a request for payment
and to whom?
B. 14 days submitting to the architect
C. 10 days submitting to the owner for payment
D. 10 days submitting to the architect for payment
97. Which of the following are reasons to maintain employee timecards?
A. Employees can use them to file their taxes with the IRS
B. Can be used in unemployment disputes
C. They can be used to calculate annual bonus amounts
D. The IRS requires they be kept for 5 years
98. How long is a Fictious Name valid for and when do they expire?
A. 3 years and expire on December 31st of the third year
B. 5 years and expire on December 31st of the fifth year
C. 10 years and expire on the anniversary date of filing
D. They never expire nor need renewing if the entity remains active
99. Which one of the following is not accomplished through good inventory controls?
A. Reduces the need for storage
B. Reduces taxes and insurance and other costs
C. Reduces exposure of materials to theft
D. Reduces the need to backorder inventory
100. The current ratio is calculated by __________.
A. Adding cash and accounts receivable and dividing by liabilities
B. Dividing current liabilities by current assets
C. Dividing current assets by current liabilities
D. Comparing the total loan debt to current income
101. The __________ lists all checks cashed and who cashed them.
A. Cash Register
B. Check Ledger
C. Check Register
D. Subsidiary Ledger
102. __________ are the minimum levels of coverage of public liability and property damage insurance General
Contractors must carry.
17
103. OSHA records are to be located __________ when employees are not associated with a fixed
establishment.
B. At field offices or mobile base operation locations
C. At the corporate office
D. Where the employees report to work each day
104. Which of the following are not required recordable injuries?
A. Injuries requiring first aid treatment only
B. Removing foreign items from the eye with tweezers
C. Use of prescription medications
D. Application of bandages by medical personnel
105. Which of the following are not the owner’s responsibility to pay?
A. Easements
B. Use or occupancy of permanent structures
C. Permits and fees assigned to the contractor under the contract documents
D. Permanent changes to existing facilities
106. To whom and on what schedule shall bonds related to a bid be delivered by the bidder?
A. To the architect no later than three days after contract execution
B. To the architect no later than five days after contract execution
C. To the owner no later than five days after contract execution
D. To the owner no later than three days after contract execution
107. What is an example of an incentive discount offered to customers to pay open invoices?
A. 2% - 10- days, net 30
B. Never offer a discount and insist your customers pay the full price
C. 10% off on all orders over $1,000
D. None of the above
108. What penalty is imposed for failure or refusal of an employer or carrier to report any form or notice
associated with a death as required by Chapter 440, Workers Compensation Laws?
A. Fine not to exceed $1000
B. Fine not to exceed $1500
C. Fine not to exceed $500
D. Fine not to exceed $500 for the first failure and not to exceed $2000 for each subsequent
failure
18
109. When preparing an estimate, __________ would be included as a fixed overhead expense.
A. Equipment costs
D. Material costs
A. A policy statement regarding safety
B. Safety Rules
C. Workers’ Compensation Guidelines
D. Employee Orientation program
111. Which of the following is not true regarding posting a Notice of Commencement?
A. When a loan exists, it is the contractor’s responsibly to post the notice
B. It may be posted no sooner than 90 days prior to the start of work at the site
C. The owner is obligated to post a copy at the site
D. The posted notice always needs to remain on site
112. __________ must be kept separate from other assets when calculating depreciation.
A. Land
C. Truck and Autos
D. On site equipment
113. Under what circumstance may a foreign trained professional be allowed to take the examination for
construction licensing?
A. If the applicant immigrated to the US for political reasons
B. If the applicant successfully completed an approved course prior to 1990
C. If the applicant immigrated to the US for political reason from a county located in the
Western Hemisphere lacking diplomatic relations with the US
D. There is no special circumstance under which an applicant may take the exam and they must
adhere to the same rules as all other applicants
114. When should you provide an incentive discount to customers based on receivables?
A. When they can refer you other business
B. When you want to increase sales
C. When you want them to pay their open invoice quickly
D. When they have an “A” credit rating
19
115. When a subcontractor defaults on work in accordance with agreement with a contractor which of the
following are allowable remedies for the contractor?
A. The contactor may correct the default if the subcontractor has failed to do so within 10 days
after the subcontractor received notice from the contractor
B. Architect may hire a new subcontractor if the subcontractor has failed to correct the default
within 5 days after receipt of notice from the contractor
C. Contactor may correct the default if the subcontractor has failed to do so within 5 days after
the subcontractor received notice from the contractor
D. Architect may hire a new subcontractor if the subcontractor has failed to correct the default
within 10 days after receipt of notice from the contractor
116. The total maximum allowable penalty for an employer who committed a willful or repeated violation of
OSHA regulations and failed to comply with OSHA mandated posting requirements is __________.
A. $148,431
B. $136,942
C. $149,413
D. $137,180
117. Which of the following should be considered when deciding on the man-hour range to use when creating
an estimate?
C. Skill and experience of the craftsman
D. All the above
118. How many copies of the contract documents must the owner provide the contractor?
A. Two signed originals and one copy
B. One signed original and one copy
C. One signed original and one copy
D. One
119. The contractor will submit a certificate for payments within __________ days after the work is complete.
A. 7
B. 10
C. 3
20
120. Where and for what period must OSHA 300/300A and any supplementary reports be maintained by the
employer?
A. Retained in the corporate headquarters office for 5 calendar years following the end of the
year to which they relate
B. Retained in the corporate headquarters office for 3 calendar years following the end of the
year to which they relate
C. Retained in each establishment for 5 calendar years following the end of the year to which
they relate
D. Retained in each establishment for 3 calendar years following the end of the year to which
they relate
121. Unless otherwise provided for in the contract documents, the contractor will pay for which of the
following?
A. It is the owner’s responsibility to pay for all permits, not the contractor
B. Building permits, fees, inspections by the local building department
C. Only permits when issued in their name excluding work performed by contractors
D. Only building permits
122. Which of the following does not affect the productivity rate of equipment?
A. Experience of the operator
B. Overruns of Equipment
D. Permissible speeds
123. Which of the following is not true regarding filing a Notice to Owner?
A. Must be filed before commencing or no later than 45 days after completing work
B. Must be filed before the owner’s disbursement of final payment
C. Must be filed before commencing or no later than 45 days after commencing work
D. Must be filed regardless of the method of payment by the owner
124. Which of the following must the contractor make available at the site?
A. Change orders, product data and samples
B. Change orders, product data, samples and proof of liability coverage
C. Contract documents and proof of liability coverage
D. None of the above, these are the responsibility of the architect to make available
125. Real turnover is an example of a __________ ratio.
A. Combined
B. Current
C. Accrual
D. Balanced
( − )
=
$23,000 - $2,000 = $21,000
$21,000 ÷ 10 = $2,100
2017: 1-12
2017: 2-20, 2-90
4. C Florida Statute 455 455.224(1)
5. A AIA Document A201, 2017 3.2.4 Index: Claims and Disputes
6. A Florida Contractors Manual 3-48
7. B Florida Contractors Manual 5-32
8. A Builders Guide to Accounting 17
9. D Builders Guide to Accounting 68
10. C AIA Document A201, 2017 3.7.4
11. C Builders Guide to Accounting 181
12. B Florida Statute 455 455.2235(4)
13. D Florida Contractors Manual 4-12
14. A Builders Guide to Accounting 130
15. C Florida Contractors Manual 2021: 2-16, 2-131
2017: 2-19, 2-157
18. D Florida Contractors Manual 3-73
19. B AIA Document A201, 2017 1.5
20. B Florida Contractors Manual 2021: 2-73, 489.115(4)(b)1.
2017: 2-82, 489.115(4)(b)1.
24. C Florida Contractors Manual 3-9
25. B AIA Document A201, 2017 15.3.2
26. A Florida Contractors Manual 10-63
27. D Builders Guide to Accounting 268
28. B Builders Guide to Accounting 55
29. B Builders Guide to Accounting 143
30. D Builders Guide to Accounting 46
31. A Builders Guide to Accounting 115
32. D Florida Contractors Manual 2021: 2-17
2017: 2-19
2017: 5-52, 5-284
2017: 1-23
37. A Florida Contractors Manual 7-11
38. D Florida Contractors Manual 10-57
39. B Florida Contractors Manual 2021: Pg. 9-22
2017: Pg. 9-21
2017: 2-19
45. D Florida Contractors Manual 2021: 2-17
2017: 2-20
2017: 2-20, 2-87
48. A Florida Contractors Manual 2021: 5-289
2017: 5-279, 5-292
50. D Builders Guide to Accounting Pg. 120
51. A Florida Contractors Manual 2021: 1-27
2017: 1-23
53. D Florida Contractors Manual 2021: 5-290
2017: 5-292
55. B AIA Document A201, 2017 1.1.5, 3.12
56. C AIA Document A201, 2017 7.3.4 item 4
57. C AIA Document A701, 2018 2.1.1-2.1.4
58. C Builders Guide to Accounting 147, 243
59. C Builders Guide to Accounting 32
60. D Florida Contractors Manual 2021: 2-68
2017: 2-75
63. B Florida Contractors Manual 2021: 1-20
2017: 1-10
2017: 5-297
66. C Builders Guide to Accounting 273
Florida Contractors Manual 3-108
24
2017: 1-15
71. A Florida Contractors Manual 2021: 2-133
2017: 2-159
73. B Florida Contractors Manual 2021: 2-22, 2-76, 2-134
2017: 2-20, 2-87, 2-160
77. C Florida Contractors Manual 2021: 2-133
2017: 2-160
79. D Builders Guide to Accounting 119
80. A Florida Contractors Manual 2021: 1-12
2017: 1-13
83. B AIA Document A201, 2017 4.2.7
84. B Builders Guide to Accounting 252-253
85. D Builders Guide to Accounting 155
86. A Builders Guide to Accounting 141
87. D Florida Contractors Manual 2021: 1-11
2017: 1-13
89. B Builders Guide to Accounting 121
90. C Florida Contractors Manual 3-65, 3-106
91. C AIA Document A201, 2017 7.2.1
92. D Florida Contractors Manual 3-47, 3-48
93. C Builders Guide to Accounting 162
94. A Florida Statute 455 455.2281
25
2017: 1-14
100. C Florida Contractors Manual 3-89
101. C Builders Guide to Accounting 101
102. C Florida Contractors Manual 2021: 2-16, 2-131
2017: 2-19, 2-157
104. A Florida Contractors Manual 7-22, 7-23, 7-24
105. C AIA Document A201, 2017 2.3
106. D AIA Document A701, 2018 7.2
107. A Builders Guide to Accounting 59
108. C Florida Contractors Manual 2021: 6-113
2017: 6-165
110. C Florida Contractors Manual 7-36, 7-37, 7-38
111. A Florida Contractors Manual 2021: 9-12
2017: 9-11
113. C Florida Statute 455 455.218(a)
114. C Builders Guide to Accounting, 59
115. C AIA Document A401, 2017 3.5
26
116. A Florida Contractors Manual 7-31
There are two different answers depending which edition of the book you have:
2021: Per the text, the OSHA civil penalties are as followed:
Willful or Repeated Violation - $134,937
Posting Requirements - $13,494
$134,937 + $13,494 = $148,431
B 2017: Per the text, the OSHA civil penalties are as followed:
Willful or Repeated Violation - $124,471
Posting Requirements - $12,471
$124,471 + $12,471 = $136,942
118. D AIA Document A201, 2017 2.3.6
119. D AIA Document A201, 2017 9.4.1
120. C Florida Contractors Manual 7-16
121. B AIA Document A201, 2017 3.7.1
122. B Florida Contractors Manual 10-27 & 10-28
123. A Florida Contractors Manual 2021: 9-73
2017: 9-76