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Florida Building Contractor Business-Finance Study Exam Questions and Answers 2024
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Florida Building Contractor Business-Finance Study Exam
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Florida Building Contractor Business-Finance Study Exam 2
1. Depreciation is taken on which of the company's assets? - answerFixed assets
2. Special warranty in construction contracts usually applies to the work of a(n): -
answerSubcontractor
3. If a contractor decides to increase the contract price, the contractor: - answerThe
owner must agree to a written and signed change order
4. If a subcontractor signs an unconditional waiver and release, this would imply that a: -
answerSubcontractor cannot ask anything more of the owner
5. Contractor must renew a contractor bond: - answer30 days before it expires
6. What should a contractor do if after starting a home improvement project the
contractor discovers that the details and specifications do NOT correctly show the
existing construction? - answerStop the job and inform the owner or his agent
7. Keeping good accounting records is important for: - answerMaintaining financial
statements, obtaining financing and effective management
8. Who can claim a lien on a property? - answerContractors, laborers, material
suppliers, subs, and professionals (architects, interior designers, landscape architects,
Engineers, etc. )
9. The plans and specifications of a home improvement project usually describe: -
answerLayout sizes
10. The number of years that an employer must keep records of FUTA and other federal
taxes is: - answer4 years
11. What is the term for a detailed compilation of the quantity of each elemental work
item? - answertakeoff
12. Which company is easiest to set up? - answerSole proprietorship
13. If a contractor is offering a job that might last 6 months or longer what should the
contractor state when interviewing for the job? - answerThe job is temporary
, 14. Before beginning work, an employer or contractor must inquire whether asbestos is
present in any building constructed prior to: - answer1978
15. Which basic term(s) of accounting does a contractor need to understand? -
answerLosses/Gains, cash basis of accounting, net worth
16. Important thing to include when advertising for construction work is: - answerThe
contractors license number
17. Which type of specification is most commonly used for public work? - answerOpen
18. The amount that an employee "clears" or "takes home" is _______ pay. - answerNet
19. The best way to determine if a contractor is duly licensed? - answerCall the
construction industry licensing board
20. A ________ is needed if an owner wants a contractor to start earlier before the
formalities associated with the signing of the contract can be completed. - answerLetter
of intent
21. On December 1, a company borrowed $100,000 at 12% per year. The interest will
be paid quarterly, with the first payment due on March 1. What should the company
report on its income statement for December? - answer$1000, $100,000 x .12 x
1/12=$1000
22. Which can't be said about fixed expenses? - answerOverhead is generally
considered a fixed expense
23. One way of guaranteeing project completion and correction of defects is by
withholding funds which is also called: - answerRetention
24. ________ defines the total financial resources available to the contractor. -
answerEquity
25. A contractor's license should be renewed: - answer30 days before expiration
26. When doing several prime contracts in a construction project, the limits of each
prime contract will usually be established in the: - answerSpecifications
27. What is the application fee for a contractor to reactivate outside of a renewal period?
- answer$250
28. Net sales minus Cost of Goods Sold equals - answerGross profit
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