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Contractors Business/Law Exam / Complete Questions & Correct Detailed Answers (100% Correct)
2025 / 2026.
If an employer's Federal Payroll Tax liability is $1000 how may they pay taxes? -
Answer:
quarterly
Qs: How many employees does it take for the Fair Labor Act to be applied? -
Answer:
1
Qs: What accounting method records income when the service occurs and
expense when they are incurred? -
Answer:
Accrual Method
Qs: What do the General Conditions of a contract do? -
Answer:
Outline roles of the owner, architect, and engineer.
Qs: You are purchasing an insurance policy with a monthly premium of $300.
If you implement a safety program you can save 10% on the cost of the policy. The safety program costs $400 to start and $15 a month to maintain 1 / 3
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it. What would be the net difference in cost over three year period with a safety program? -
Answer:
Net saving of $140
Qs: Written construction contract change order should include a description
of the modification to be made, any change in contract time and -
Answer:
The change in the contract dollar amount
Qs: Which of the following is a written agreement between the owner and
contractor to change the contract? -
Answer:
change order
Qs: What term identifies money withheld from progress payments to the
contractor and paid after the completion of the project? -
Answer:
Retainage
Qs: When is final payment due? -
Answer:
Final inspection, acceptance by owner and submittal of proper documentation must occur
Qs: After hiring a disabled person, which of the following can't you do,
according to the American with Disabilities Act? -
Answer:
Require a medical examination of just the person you suspect is disabled. 2 / 3
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Qs: The percentage of completion method of accounting does what -
Answer:
recognizes profit as it is earned
Qs: Workers are on a job site where noise is very loud. Who is supposed to
supply the workers with ear protection? -
Answer:
contractor (employer)
Qs: Where can you get accurate information about tax deposit schedules? -
Answer:
IRS Publication Circular E
Qs: Which of the following statements correctly describes the cash method of
accounting? -
Answer:
Income / expenses are recorded at the time they are received / paid
Qs: What type of workplace insurance provides all the benefits required by
law for employees' who are killed or injured as a result of their employment -
Answer:
Workers Compensation
Qs: If an employee is covered by Workers Compensation in the state of Utah
and is doing a job in Colorado and gets injured, are they covered by Utah Workers Compensation? -
Answer:
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