Business and Finance

Practice Test D

1. Given the following:

• The architect of a construction project approved a shop drawing submitted and approved by the

project's prime contractor, but prepared by a subcontractor.

• After the architect's approval, a deviation was discovered in the shop drawings when compared with

the project plans and specifications.

According to AIA A-201, the responsibility to correct the deviation lies with the ______________.

A. owner

B. subcontractor

C. prime contractor

D. architect

2. When determining a project bid, which of the following expenses is considered an overhead expense?

A. costs of recruiting laborers for that job

B. materials needed for that job

C. purchases of small tools

D. rental of equipment to be used only for that job

3. If the subcontractor defaults or neglects to carry out the work in accordance with this agreement and fails

after receiving written notice from the contractor to commence and continue correction of such default

or neglect with diligence and promptness, the contractor may, after giving ______ days from the receipt

by the subcontractor of any additional written notice, and without prejudice to any other remedy he may

have, make good such deficiencies and may reduce the cost from the money owing to subcontractor.

A. 2

B. 3

C. 5

D. 7

4. For federal tax purposes, which of the following is not considered an employee?

A. Agent/Driver delivering food

B. Real Estate agent

C. Traveling sales selling hotel supplies for one company

D. Part-time worker

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5. A contractor submits the following amounts to the bonding company for a determination of the

maximum dollar amount of uncompleted work in progress.

The bonding company uses the "10 times the net quick ratio formula" to determine the amount.

Current Assets $100,000

Accounts Receivable $30,000

Real Estate Loans to officers $25,000

Current Liabilities $60,000

A. $950,000

B. $700,000

C. $215,000

D. $2,150,000

6. A secretary is hired on a salary basis of $425 per week for a work schedule of Monday through Friday 8

am to 3 pm with 1/2 hour lunch daily. In week #2 she works 45 hours. Her gross pay for week #2

is___________ .

A. $425.00

B. $621.30

C. $451.57

D. $506.75

7. Failure to file state unemployment tax reports timely will result in a penalty charge of _____ per report

per 30 day period.

A. $25

B. $10

C. $15

D. $20

8. Which of the following is a current asset?

A. accounts payable

B. accounts receivable

C. construction equipment

D. furniture

9. Which of the following is the correct priority for liens claimed under a direct contract?

A. Liens of the contractor, liens of all persons other than the contractor, liens of all laborers.

B. Liens of the contractor, liens of all laborers, liens of all persons other than the contractor.

C. Liens of all persons other than the contractor, liens of all laborers, liens of the contractor.

D. Liens of all laborer, liens of all persons other than the contractor, liens of the contractor.

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10. OSHA 300 logs must be retained at each establishment for ____________.

A. 3 years

B. 4 years

C. 5 years

D. 7 years

11. Which of the following is not an item contained in a model business plan?

A. Pricing and credit policies

B. An organizational chart of the business

C. A list of funding sources

D. All of the above are contained in a model business plan

12. A contractor has the following information available in order to process his payment request:

• original contract sum - $170,000

• change order #3

• for $15,000 — not yet started

• work completed:

sitework - $10,000

concrete — 40% of scheduled $25,000

masonry — 10 % of scheduled $19,000

materials purchased and stored on site - $5,500

• 10% retainage

• payment request #1 was for $10,000

What will be the current payment due for payment request #2?

A. $14,660

B. $24,660

C. $29,660

D. $27,400

13. If an employer withholds income tax from an employee’s regular wages, the employer may withholda

_____flat for supplemental wages.

A. 5%

B. 10%

C. 25%

D. 27%

14. A schedule of equipment time should include all of the following except______________.

A. scheduled time

B. the job number

C. consideration for adverse weather

D. repair time

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15. Payments made by the Florida Workers’ Compensation Insurance are based on the rate of ______ the

employees average weekly wage object to a maximum of $700.

A. 50%

B. 66 2/3%

C. 75%

D. 85%

16. Which of the following is not considered medical treatment:

A. Administration of a Tetanus shot

B. Application of sutures (stitches)

C. Cutting away dead skin

D. Treatment of infection

17. Which of the following have lien rights?

1. Laborer working for a supplier, supplying a subcontractor

2. Material suppliers to a sub-subcontractor

3. Sub-subcontractors

4. Material supplier to a material supplier, supplying to the general contractor

A. 1,2 and 3

B. 2,3 and 4

C. 1,3 and 4

D. 1,2,4 and 4

18. An active certified residential contractor is eligible to take the general contactors’ examination if he

possesses a minimum of_____ years of proven experience in the classification in which he is certified.

A. 1

B. 2

C. 3

D. 4

19. Which of the following is a true statement concerning OSHA Civil penalties?

A. Willful violations can be up to $100,000

B. An employer may qualify for a "good faith" reduction of 25% of the fine, if the employer

implements the proper programs.

C. Failure to abate can be up to $12,471 daily.

D. The minimum willful penalty for a serious violation is $49,844.

20. A complete cash budgeting plan ______________.

A. does not address loan payments

B. ignores tax liabilities

C. controls the purchase of materials

D. addresses the type of business of business organization used

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21. Given the following:

• A change directive is issued by the architect for $2,100

• The contractor did not respond promptly to the architects change directive and does not agree

with the architects cost and submits the following cost:

• Labor $ 825

• Materials $1,450

• machinery rental $ 300

• hand tool rental $ 400

• contractor mark-up 15%

How much can the contractor expect to receive based on his cost estimate s?

A. $2,575

B. $2,975

C. 2,961

D. 3,421

22.The services of a building contractor are limited to commercial and residential buildings which do not

Exceed_____ stories in height.

A. 1 1/2

B. 2

C. 2 1/2

D. 3

23. A general, state certified contractor shall subcontract on new construction, all of the following except:

A. Electrical

B. Shingle roofing

C. Mechanical

D. All of the above

24.The subcontractor shall not assign or subcontract without the consent of the______________ .

A. Architect

B. Owner

C. Contractor

D. Architect and owner

25. Which statement regarding leases is not true?

A. a lease-purchase agreement for equipment may require little or no initial investment

B. depreciation can be claimed on equipment that is lease-purchased

C. an immediate tax deduction is not available for the cost of monthly leases

D. for equipment that will be used for a brief period of time, leasing is cheaper than owning

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26. If a married employee is paid $1,500 per month and claims 2 withholding allowances, the income tax

that must be withheld, would be____ .

A. $7

B. $11

C. $27

D. $38

27.The "regular rate" must be calculated for:

A. Any hourly employee working less than 40hrs/week

B. Exempt employees

C. Non-exempt salaried employees working over 40hrs/week

D. Administrative personnel

28. When a contract for the improvement of real property is made by a husband or wife, the other shall

within____ days after learning of such contract, give the contractor and record in the clerks’ office,

notice of his or her objection thereto.

A. 10

B. 15

C. 30

D. 45

29. Allowances shall cover the cost to the contractor of all materials and equipment

A. Delivered to the site, all taxes, less trade discounts

B. Delivered to the site, all taxes, less trade discounts, contractor transportation, handling,

installation, overhead, profit and other expenses

C. Delivered to the site, all taxes, plus trade discounts, unloading, handling, installation, overhead,

profit and other expenses

D. Delivered to the site, all taxes, double discounts, unloading, handling, installation overhead,

profit and other expenses

30.The minimum wage pay should be not less than_____ /hr.

A. $5.15

B. $7.25

C. $8.25

D. $10.48

31. One way an owner can minimize the risk of having a lien filed on his or her property is .

A. Have the contractor submit an affidavit that all persons are paid

B. Stay active on the project and talk to the subcontractors

C. Have the contractor obtain a performance bond

D. Have the contractor obtain a payment bond

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32. When the plotted job progress curve does not swing up soon enough, the contractor _______________.

A. will make a higher overall job profit

B. will finish early

C. needs to delay scheduled labor and material

D. has over-estimated the cost

33. Given the following:

• The contractor encounters a concealed physical condition on January 22 r4 that will cause the contract

price to be adjusted

• The contractor notifies the architect promptly before conditions at the site are disturbed on January 22nd

• The architect examines the condition on February 3rd and determines that no change in the contract is

justified

According to AIA document, A-201, the contractor must make a written claim for adjustment by_______ .

A. February 24

B. February 16

C. February 21

D. April 4

34. Regardless of the pay period, the act_________ allow the averaging of hours over 2 or more weeks to

arrive at a single work week hourly figure.

A. May

B. Does not

C. Does

D. None of the above

35. According to AIA document A-401, within_____ days following issuance by the architect of the

certificate for payment covering such substantially completed work, the contractor shall, to the full

extent provided in the contract documents, make payment to the subcontractor of the entire unpaid

balance of the contract sum or of that portion of the contract sum attributable to the substantially

completed work.

A. 10

B. 15

C. 20

D. 30

36. With respect to an application for a certificate, the initial application fee may not exceed _______.

A. $25

B. $50

C. $100

D. $150

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37. Which one of the following is a variable overhead expense?

A. utilities

B. postage

C. labor payroll taxes

D. rent

38. When taxes are not deposited when due and the delay is 16 or more days late, a penalty of ____ is

charged.

A. 5%

B. 10%

C. 12%

D. 18%

39. AIA bids are received __________.

A. in a sealed envelope

B. by phone — bidder to contractor

C. in a legal size envelope

D. all of the above

40. If a change in ownership occurs in a business that has a fictitious name, the owner of record must

file a cancellation and registered within______ days.

A. 10

B. 15

C. 30

D. 90

41. Deposits for FUTA taxes are due by .

A. The 15th day of the month following the end of the quarter

B. By the 5th day of the next month following the quarter

C. By the last day of the first month after the quarter ends

D. At the end of the eighth monthly period

42 Which of the following documents are required to be on site for the owner?

A. Drawings

B. Specifications

C. Change orders

D. All of the above

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43. Good inventory control ____________________.

A. increases exposure to theft

B. maximizes the need for storage space

C. maximizes investment in capital inventory expenditures

D. reduces taxes and insurance costs

44.The maximum credit against the FUTA for payments to state unemployment funds is______ .

A. 2.8%

B. 3.5%

C. 5.4%

D. 6.2%

45. Construction industry employers who have______ or more employees are required to have workers

compensation insurance.

A. 4

B. 3

C. 2

D. 1

46. When a surety bond has been posted, no action shall be instituted or prosecuted against the surety

on the bond after_______ from the performance of the labor or completion of the materials and

supplies.

A. 30 days

B. 60 days

C. 90 days

D. 1 year

47. According to AIA document A401, the subcontractor’s ability to assign his position in the

subcontractor's is_____________ .

A. Not permissible at any time

B. Permissible with the written consent of the contractor

C. May assign the contract only in a bankruptcy situation

D. May not assign the contract unless an approval in writing is received from the architect

48.Which one of the following assets is eligible for depreciation?

A. land

B. warehouse

C. inventory

D. intangible property

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49. If an incomplete contract exists at the time of death of the contractor, the contract may be completed by

any person, even though not certified or registered, if the board is notified within______ days after the

death of the contractor. If the board approves, he or she may proceed with the contract.

A. 15

B. 30

C. 45

D. 60

50. The following is a breakdown of cost for a construction project

Plans $ 400

Permit fee $2,950

County Assessment $4,200

Survey $ 500

According to the contract provisions found in AIA document A-201, the contractor is responsible for

the payment of__________.

A. $400

B. $2,950

C. $3,350

D. $8,050

51. According to AIA document A-401 the contractor shall pay the subcontractor each progress payment

And the final payment within______ days after he receives payment from the owner.

A. 3

B. 5

C. 7

D. 10

52. Which of the following is most likely exempt from overtime provisions?

A. Laborer on salary

B. Laborer on hourly wage

C. Office messenger on salary

D. Office manager

53. Allowances as defined by AIA Document A-201 shall cover.

A. the cost to the contractor of materials, equipment and delivery but not trade discount

B. the cost to the contractor of materials, equipment and delivery and trade discounts

C. delivery, trade discounts, reasonable mark-up but not loading and unloading

D. only hard and soft costs

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54. Any employer or insurance carrier who fails or refuses to send any report required of him by the

workers compensation law shall be subject to a civil penalty not to exceed_____ for each failure or

refusal.

A. $100

B. $500

C. $1,000

D. $5,000

55. A contractor needs to determine the safe working load ofa ¾” nylon rope. There are no manufacturers

charts or tables for the contractor to refer to. The mathematical SWL calculation would yield a SWL

of________lbs.

A. 2,160

B. 4,000

C. 960

D. 540

56. All the following are advantages of leasing except ___________________.

A. an immediate tax deduction is available for the cost of monthly leases

B. the equipment will receive regular use

C. no large investment or financing commitment is required

D. it allows the contractor the chance to evaluate equipment before buying it

57.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

58.1f an employee earns $10 /hr. and works a 50 hour week, what is the total payment for that week?

A. $450

B. $500

C. $550

D. $600

59. The subcontractor shall report within ______day(s) to the contractor any injury to any of the

subcontractors employees at the site.

A. 1

B. 2

C. 3

D. 4

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60.. A change order must be signed by___________________ .

A. owner and contractor

B. architect and contractor

C. owner and architect

D. owner, architect and contractor

61. The workers compensation program provides payment for part of the wages an employee might lose if

the job related injury or illness disables the employee for more than ____________ days.

A. 3

B. 7

C. 14

D. 21

62. One of the most practical and useful cash controls available is __________________.

A. a daily cash summary

B. a quarterly cash summary

C. a secure petty cash box

D. keeping petty cash receipts

63. A subcontractor has the same responsibility and obligation to the contractor as the ______________.

A. architect has to the owner

B. owner has to the contractor

C. owner has to the architect and contractor

D. contractor has to the architect and owner

64. An employee’s gross pay in the first pay period of the year is $675. The employee is single, has 2

withholding allowances, and is paid bi-weekly. The amount of the employees withholding is ___________.

(Select closet answer).

A. $52

B. $27

C. $70

D. $67

65. The _______________ may reject a subcontractor hired by the contractor.

A. Architect

B. Contractor

C. Owner

D. A and C are correct

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66. The statement “Each employer shall furnish to each of his employees employment and a place of

employment which is free from recognized hazards that are causing or likely to cause death or serious

physical harm to his employees” is known as the _________________________.

A. General Duty Clause

B. Chapter Seven – Rule 1

C. OSHA Rule 1926.1

D. Employer Safety Obligation 7

67. All the following are procedures included in the budget process except ________________.

A. analyzing the results

B. consulting with your accountant

C. preparing the budget

D. taking action to control expenses

68. According to AIA document A401, before issuance of the final payment to the subcontractor by the

contractor, which of the following should occur?

A. Inspectors issue a certificate of occupancy;

B. Subcontractor provides proof of compliance with Title IX

C. Architect issues a certificate for payment

D. none of the above

69. For FUTA tax purposes, an employer is any person or organization that has paid wages of at least

______in any calendar quarter.

A. $500

B. $1,000

C. $1,500

D. $2,000

70. A household worker, age 20, is paid $100 a week salary and has worked 25 weeks. Which taxes are

required?

A. Income Taxes

B. FICA

C. Federal unemployment taxes

D. B & C are correct

71. When figuring overhead, which is a fixed expense?

A. small tools

B. operating supplies

C. equipment rental

D. advertising

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72. The bidder shall deliver the required bonds to the owner not later than ________ days following the

date of the execution of the contract.

A. 1

B. 3

C. 5

D. 7

73. A construction change directive provides for a change in cost or time. The cost may include all of the

following but _____________.

A. labor, social security, unemployment

B. social security, materials, equipment

C. equipment, hand tools, bonds

D. labor, materials, equipment, bonds

74. The subcontractor shall notify the contractor in writing on __________ before commencing the

subcontract work scheduled to begin on March 10, unless the date of commencement is established by a

notice to proceed issued by the contractor.

A. March 5

B. March 10

C. March 15

D. April 1

75. A project schedule is usually prepared by the _______________________.

A. Project Manager

B. Superintendent

C. Architect

D. General Contractor

76. According to AIA A201, who shall secure permission to use a utility easement required to reach the

construction site?

A. the subcontractor

B. the contractor

C. the owner

D. the architect

77. The best way to control equipment costs is good____________.

A. maintenance

B. scheduling

C. financing

D. reports

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78. Overtime pay should be paid at not less than _______ times the regular hourly wage after40 hours in

one work week.

A. .5

B. 1.5

C. 1.75

D. 2 (if work falls on a holiday or weekend)

79. According to AIA document A-401, the contractor shall provide the subcontractor a copy of the

estimated progress schedule of the _______________.

A. subcontractors work

B. all subcontractors work on the job

C. contractors work as it relates to the phase of construction

D. construction schedule

80. If an improvement described in a notice of commencement is not actually commenced within _____

days after the recording thereof, such notice shall be void and of no further effect.

A. 10

B. 15

C. 90

D. 45

81.For a temporary partial disability, Worker’s Compensation benefits shall not exceed a period of ____

weeks.

A. 26

B. 52

C. 104

D. There is no time limit on this benefit

82. In order to establish an hourly cost for a bulldozer for job allocations, which of the following would not

apply?

A. cost of equipment less salvage value

B. operating costs involving gas, oil, and accessories

C. repairing and maintenance costs

D. unpredictable job site conditions

83. A secondary qualifying agent is not responsible for _________________.

A. quality of the work being done

B. jobsite safety

C. financial matters

D. pulling permits

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84. In general, a thorough inspection of all ropes in use should be made ______________.

A. once a month

B. once a week

C. once a day

D. once for every 80 hours of actual use

85. All Federal Tax Deposits must be made ______________________.

A. with a bank check or money order

B. via EFT

C. at a federally insured banking institution

D. by certified mail

86. Unless otherwise provided in the contract documents, the contractor shall pay the subcontractor each

progress payment and the final payment under the subcontract within ______ day(s) after he receives any

payment from the owner.

A. 2

B. 3

C. 5

D. 7

87. If an individual is found to be eligible to draw state unemployment benefits and the individual’s

average weekly wage for the base period was $340, the individuals weekly benefit amount would-be

______ .

A. $170

B. $220

C. $250

D. $340

88. The _____________is responsible for inspections to determine the dates of substantial completion and

final completion.

A. Builder

B. Owner

C. Architect

D. Savings and loan

89. When preparing a financial statement for a lender before applying for a loan, it is best to first________.

A. accumulate current assets to improve the cash position

B. reduce current liabilities

C. try to decrease the current ratio

D. try to increase the volume of business

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90. The FLSA is not concerned with ______________________.

A. overtime

B. minimum wage

C. vacation pay

D. child labor

91. According to AIA documents A-401, after a payment is due the subcontractor is entitled to the payment

plus _______________.

A. Disintermediation

B. Interest

C. Penalties

D. Both B and C are correct

92. An employer has 3 employees; each will be paid a salary as shown below:

Employee #1 — $70,000

Employee #2 — $52,000

Employee #3 — $49,500

The total amount of Medicare and Social Security taxes that the employer will have to deposit is ________.

A. $15,484

B. $25,995

C. $12,998

D. $26,239

93. According to AIA document A-401, the contractor shall notify the subcontractor of subsequent changes

in the construction and scheduling details _______________.

A. 1 day

B. 3 days

C. 5 days

D. Promptly

94. After a lienor receives a Notice of Contest of Lien, the lienor shall have ___________ to institute suit to

enforce his or her lien rights or the lien shall be extinguished automatically.

A. 7 days

B. 60 days

C. 90 days

D. 1 year

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95. All current liabilities include equipment that is payable within _______________.

A. 30 days

B. 90 days

C. 180 days

D. 365 days

96. The relationship of Subcontractor and Contractor is like the relationship between ________________.

A. owner to architect

B. owner to contractor

C. architect to contractor

D. contractor to owner & architect

97. The total amount of lost wages that workers compensation insurance will pay depends on the type of

disability, but in most instances, an employee will receive __________ of his average weekly wage.

A. 1/4

B. 1/3

C. 1/2

D. 2/3

98. A construction change directive signed by the owner and the architect provides payment to the

contractor for all but which of the following?

A. social security & unemployment insurance

B. cost of materials and equipment

C. bonds and insurance

D. rented hand tools

99. The safe working load (SWL) for a rope with a breaking strength of 2,000 lbs. is __________lbs.,if the

rope is being used to hoist materials.

A. 2,000

B. 400

C. 200

D. 1,000

100. Which item below is not a fixed asset?

• Office furniture $ 1,243

• Land $35,000

• Trucks $ 6,410

• Inventory $20,000

A. inventory

B. land

C. office furniture

D. trucks

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101. If the subcontractor is not paid by the contractor through no fault of his own, within ____ days from

the time the payment should have been made, the subcontractor may, upon the same number of days

written notice to the contractor, stop his work until payment of the amount owing has been received.

A. 1

B. 5

C. 3

D. 7

102. Under OSHA terms, a "competent person" is ______________.

A. A designated superintendent on the job site.

B. An office person who is in charge of a safety program.

C. An official from OSHA.

D. A person who can identify a hazard in a working area and has authorization to correct it.

103. If the architect does not issue a Certificate for Payment, through no fault of the or the contractor,

within seven days after receipt of the contractor's application for the actor may, upon _____________

additional days written notice to the owner and architect, stop the work until payment is made.

A. 7

B. 10

C. 15

D. 20

104. A claim of lien may be recorded at any time during the progress of the work or thereafter but not later

than ________ days after the final furnishing of the labor, services, or materials by the lienor.

A. 30

B. 45

C. 60

D. 90

105. According to AIA document A-401, permits for subcontracted activities shall be the responsibility of

_______________ for payment

A. Architect

B. Contractor

C. Owner

D. Subcontractor

106. A construction change directive need not have the agreement of the ______________.

A. Owner

B. Contractor

C. Architect

D. Anyone

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107. When using the inventory ratio method, a high ratio indicates ________________.

A. average inventory

B. high inventory

C. high market average

D. low inventory

108. A non-exempt employee earns a salary of $400/week on a fluctuating work week and works 50hours

in a particular week, what is his gross pay?

A. $218

B. $175

C. $283

D. $192

109. According to AIA document A-401, time is ______________.

A. Specified in contract AIA A-201

B. Specified in AIA document A-305

C. Of the essence

D. Mentioned but not critical

110. If an employee is injured, the employer must file a report of injury with the insurance carrier and the

division of workers' compensation within ______ days of learning of the injury.

A. 3

B. 5

C. 7

D. 10

111. The ________will have the authority to reject work which does not confirm to the contract documents.

A. Owner

B. Architect

C. Savings and loan

D. None of the above

112. The first step in preparing a financial statement at the end of an accounting period is to put together

________________.

A. a supplementary schedule

B. a trial balance

C. an income statement

D. the closing adjustments

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113. A notice to owner must be served by a subcontractor before commencing, or not later than ____ days

after commencing furnishing services or materials.

A. 30

B. 45

C. 60

D. 90

114. The contractor has a money claim for work done while protecting the owner's property during severe

weather. His claim for an additional payment must be made within ______ days.

A. 7

B. 10

C. 14

D. 21

115. The____ shall be responsible for purchasing and maintaining property insurance upon the entire work.

A. Architect

B. Contractor

C. Owner

D. Mortgage

116. With the inclusion of “a liquidated damage” clause in an agreement between a contractor and an

owner, the contractor would be liable for liquidated damages in the event the contractor, through his own

negligence, did not complete the project by the time established in the contract. The intent of “liquidated

damages” is ____________________________.

A. to give the contractor the automatic right to apply the provisions in reverse for an owner-caused

delay.

B. To penalize the contractor for the late completion of the project.

C. To use the amount stipulated, in lieu of actual damages, which would be caused by late

completion.

D. That this will result in a law suit for penalties.

117. Which of the following statements is not true concerning a corporation?

A. The principal advantage of a corporation is limited liability of the owners.

B. A corporation is dissolved by the death of a shareholder.

C. Corporations are closely regulated.

D. A corporation may be subject to double taxation.

118. A Notice of Contest of Lien _________________________________________.

A. is one possible way to shorten the life of a lien.

B. will extinguish the lien if not responded to by 60 days.

C. is filed by, or on behalf of, the owner.

D. all of the above

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119. A(n)________________ need not be in writing to be enforceable.

A. contract for purchase or sale of real property

B. promise to guaranty or answer for the debt of another

C. agreement for the sale of goods under $500

D. agreement to submit a dispute for arbitration

120.Which of the following is not true regarding a drug-free workplace program?

A. For a new program, the employer must give 60 days notice to employees before implementing

drug testing.

B. The definition of “drug” includes alcohol

C. Notice of drug testing must be sent to every employee once a year

D. All of the above are true.

121.Your cost to date on a job are $25,000. There is an estimated cost remaining of $45,000. The

contract price is $100,000. To date, you have been paid $40,000. What percentage of the work is

completed at this time?

A. 33.25%

B. 35.714%

C. 48.333%

D. 66.667%

122. In the above question, at this time, how much of the contract income is earned/recognized?

A. $31,988

B. $35,714

C. $39,267

D. $43,000

123.In the above question, what percentage of the work remains (not completed)?

A. 47.380%

B. 53.082%

C. 64.286%

D. 74.395%

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124. The job’s cost is $3,000 to date. It’s estimated another $9,000 in costs remain. The

contract price of the job is $15,000? What percentage of the job is complete?

A. 15%

B. 20%

C. 25%

D. 33%

125. In the above question, how much money has been earned?

A. $3,750

B. $4,000

C. $4,500

D. $4,950

Answer

Q A Section/Page# Book

1. C 3.12.8 A.I.A. 201

2. C Page 142, 143 BGA

3. C 3.5 A.I.A. 401

4. B 5-286, 6-7 FCM

5. B 3-89 100,000 + 30,000 - 60,000 = 70,000 X 10 = $700,000

6. B 5-22 FCM 425 ÷ 32.5 = $13,08 / hr

40 x 13.08 = 523.20

5 x 13.08 x 1.5 = 98.10

$621.30

7. A 5-53 FCM

8. B Page 327 or 252 BGA

9. D 9-81, 713.06(4a) FCM

10. C 7-16 FCM

11. D 1-18 FCM

12. A math A.I.A 201

10,000

40% x 25,000 = 10,000

10% x 19,000 = 1,900

5,500

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27,400 — 10% = 24,660

previous payments -10,000

current payment due 14,660

13. C 3-166 FCM

14. C Page 159 BGA

15. B 6-151, 440.15(2) FCM

16. A 7-24 FCM

17. A 9-17 FCM

18. D 2-16 FCM

19. B 7-32, 7-33 FCM

20. C Page 173, 174 BGA

21. C 7.3.6 A.I.A. 201 825 (labor) + 1450 (materials) + 300 (mach) = 2575 x 1.15 = 2,961

22. D 2-69 FCM

23. B 2-7 FCM

24. C 7.4.2 A.I.A. 401

25. C Page 169, 170 BGA

26. B 3-208 FCM

27. C 5-20 FCM

28. A 9-9, 713.12 FCM

29. A 3.8.2 A.I.A. 201

30. B 5-72 FCM

31. D 9-72, 713.02(6) FCM

32. C Page 308 BGA

33. A 15.1.3.1 A.I.A. 201

34. B 5-20 FCM

35. D 11.2 A.I.A. 401

36. D 2-75, 489.109 FCM

37. C Page 142 BGA

38. B 3-176 FCM

39. A 4.3.1 A.I.A. 701

40. C 1-15 FCM

41. C 3-183 FCM

42. D 3.11 A.I.A 201

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43. D Page 121 BGA

44. C 3-182 FCM

45. D 6-75, 440.02(17)(b)(2) FCM

46. D 9-112, 713.245(2) FCM

47. B 7.4.2 A.I.A. 401

48. B Page 162 BGA

49. B 2-89, 489.121 FCM

50. B 2.3.1 A.I.A. 201

51. C 11.3.1 A.I.A. 401

52. D 5-15, 5-89 Contactors Manual

53. A 3.8.2 A.I.A. 201

54. B 6-165, 440.185(8) FCM

55. A 7-56 FCM (6 x 6) x 60 =2,160

56. B Page 169 BGA

57. B 1-10 FCM

58. C 5-21 FCM

59. C 4.4.1 A.I.A. 401

60. D 7.2 A.I.A. 701

61. B 6-11, 440.02(25) FCM

62. A Page 180 BGA

63. D 5.3 A.I.A. 201

64. B 3-198 FCM

65. D 5.2.2 A.I.A. 201

66. A 7-6 FCM

67. B Page 144 BGA

68. C 11.3.1 A.I.A. 401

69. C 3-182 FCM

70. D 3-186 FCM

71. D Page 142 BGA

72. B 7.2.1 A.I.A. 701

73. C 7.3.4 A.I.A. 201

74. A 9.2.1 A.I.A. 401

75. A 10-63 FCM

76. C 2.3.1 A.I.A. 201

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77. B Page 228 BGA

78. B 5-20 FCM

79. D 3.1.2 A.I.A. 401

80. C 9-12, 713.13(2) FCM

81. C 6-155, 440.1(2)(a) FCM

82. D Page 159,160 BGA

83. C 2-89, 489.1195(2) FCM

84. A 7-75 FCM

85. B 3-175 FCM

86. D 11.3.1 A.I.A. 401

87. A 5-53 FCM $340 ÷ 2 = $170 (or weekly salary x 13 ÷ 26)

88. C 4.2.9 A.I.A. 201

89. B Page 174 BGA

90. C 5-11 FCM

91. B 11.4 A.I.A 401

92. D 3-171 FCM $70,000 + 52,000 + 49,500= $171,500 Medicare is1.45% + 1.45%

(withheld + contributed) SS is 6.2% + 6.2% (withheld + contributed) 15.3% of $171,500 = $26,239.50

93. D 3.3.1 A.I.A. 401

94. B 9-105, 713.22(2) FCM

95. D Page 253 BGA

96. D 5.3 A.I.A. 201

97. D 6-151, 440.15(2) FCM

98. D 7.3.4 A.I.A. 201

99. B 7-53 FCM 2000 ÷ 5 = 400

100. A Page 252 or 327 BGA Fixed assets are also referred to as long-term assets.

101. D 4.8 A.I.A. 401

102. D 7-39 FCM

103. A 9.7 A.I.A. 201

104. D 9-27 & 9-84, 713.08(5) FCM

105. D 4.3.1 A.I.A. 401

106. B 7.1.2 A.I.A. 201

107. D Page 121 BGA

108. C 5-23 FCM $400 ÷ 50 =$8.00 ; 50 x 8= $400 ; 10 x (8 x .5 or ½) = $40 Total pay = $440

109. C 9.3 A.I.A. 401

110. C 6-12 & 6-164, 440.185(2) FCM

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111. B 4.2.6 A.I.A. 201

112. B Page 250 BGA

113. B 9-76, 713.06(2)(a) FCM

114. D 15.1.3.1 A.I.A. 201

115. C 11.2.1 A.I.A. 201

116. C 10-75 FCM

117. B 1-13 FCM

118. D 9-30, 9-105, 713.22 FCM

119. C 8-6 – 8-7 FCM

120. D 6-94 – 6-97 FCM

121. Answer B.

$25,000 + $45,000 = $70,000 (completed cost to date + estimated remaining cost =

estimated total cost)

$25,000 ÷ = $70,000 = 35.714% (completed to date ÷ estimated total cost = percentage of

work completed)

35.714% is the percentage of work completed.

122. Answer B.

$25,000 + $45,000 = $70,000 (completed cost to date + estimated remaining cost =

estimated total cost)

$25,000 ÷ = $70,000 = 35.714% (completed to date ÷ estimated total cost = percentage of

work completed)

35.714% is the percentage of work completed.

35.714% of $100,000 is $35,714 (percentage of work completed applied to contract price =

amount of contract income earned or recognized)

123. Answer C.

$25,000 + $45,000 = $70,000 (completed cost to date + estimated remaining cost =

estimated total cost)

$45,000 ÷ = $70,000 = 64.286% (remaining cost ÷ estimated total cost = percentage of

work not completed)

64.286% is the percentage of work not completed

124. Answer C.

3,000 + 9,000 = 12,000 (completed to date + estimated cost remaining = total cost)

3,000 ÷ 12,000 = .25 or 25% (completed to date ÷ total cost = % completed)

125. Answer A.

25% x 15,000 = 3,750. (percentage of actual cost completed x total contract = $ earned)

This is actual amount earned to date.

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