NASCLA Contractors Guide Arkansas: Questions and Answers, Exams of Law

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2 CORRECT ANSWER How many members of the board are consumers? right to work CORRECT ANSWER what laws secure the right of employees to decide if they wish to support or join a union? Consideration CORRECT ANSWER __________ is anything of value Social Security Card CORRECT ANSWER which of the following establishes an employee's eligibility to leagally work in the united states? foul language CORRECT ANSWER which of the following should not be tolerated at a job site? 2 CORRECT ANSWER enployers engage in building repair work with __________or more employees are required to carry workers compensation 15,896 (112,000 X 2.9=3,248 (total medicare) 102,000 X 12.4=12,648 (total social security) 12,648+3,248=15,896 CORRECT ANSWER If an employee earns 112,000 per year, what is the total amount of FICA to be paid in? material consumption CORRECT ANSWER which of the following iteams are not added after estimating materials and labor? open a check account CORRECT ANSWER which is not a purpose of marketing

Drivers License CORRECT ANSWER which of the following establishes an employee's identity to leagally work in the United States? 1/3 (chapter 14-7) CORRECT ANSWER What is the return on total assets if there is a net profit (after taxes) or 16,000 and total assets of $48,000? Form of Agreement CORRECT ANSWER all of the following are part of bid documents, Bid form , invitation to Bid, and Addenda except W4 CORRECT ANSWER Which of the following is not used to pay taxes ordinary income CORRECT ANSWER A sole proprietor is taxed on _______? 2 CORRECT ANSWER How many years have to pass when a license expires to be determined nil? injured from work CORRECT ANSWER The purpose of workers compensation is to allow for monetary compensation when an employee is? Force majeure CORRECT ANSWER _________ is a provision written into contract that is used to limit risk in case of labor strikes? 1/2 CORRECT ANSWER New applications for licensure must have______the net worth? 11 CORRECT ANSWER An EAP is required for to be in writting for ______ employees or more?

940 CORRECT ANSWER What form is used to report FUTA taxes? signed change order is not required CORRECT ANSWER When handling change order, one should always do the following except?(invoice change order work immediately, included complimentary work done without charge, show labor and quantity details) January 31 CORRECT ANSWER State umemployment tax reports are dueby ____? property tax CORRECT ANSWER Generally, which of the following is not a business tax? ( employment tax, self- employment tax, income tax are) 4/1 ( chapter 14-6 ) CORRECT ANSWER What is a quick ratio (or acid test ratio) for company that hascurrent assets of $28,000, inventory of $4,000, and current liabilities of $6,000? General Partners CORRECT ANSWER A management team for a limited partnership consists of? income statement CORRECT ANSWER What type of financial statement is used to establish revenues and expenses over a period of time? project manager CORRECT ANSWER Which of the following is not a member of the supervisory team? $100 CORRECT ANSWER How much will a license pay if they file a renewal within 30 days after expiration?

payment bond protections are void before work begins CORRECT ANSWER The construction industry payment protection act of 1999 states ____________ insuranse CORRECT ANSWER All but which of the following is a guideline for job description? (SKA, Certificates, responsibilities are) $35,000 ( Chapter 14-8) CORRECT ANSWER What is a bill overage/ deficiency when there are cumulative earnings of $90,000 and the amount billed to date is $55, 1099 CORRECT ANSWER If subcontractor laborer earns $600 or more what form is used? laid off CORRECT ANSWER Umemployment insurance is for employees who have been__________ A decrease of $3780 (16,000+3250=19250 changes, 19000+3400=22400 orginal amount, 22400-19250=3150*20%=630+3150=3780) CORRECT ANSWER The owner requests for changes which will cost the contractor $16,000 in labor and materials and $3,250 in overhead costs. With the change, the contractor would be relieved of $19,000 in labor and materials costs, and $3,400 in overhead costs from the original contract. The original bid included a profit of 20% of all costs on the changes. The adjusted contract price for the change order should be? 15 CORRECT ANSWER Action to forclose on a lien must begin with ______ monthsafter the lien id filed? contractor reveals original bid CORRECT ANSWER Which of the following does pertain to bid shopping?

employer CORRECT ANSWER Who pays into workers compensation? C corperation CORRECT ANSWER If D &K construction wanted to limit their liabilities, they shouls become a(n)? communication CORRECT ANSWER Establishing _____________ will ensure that your customer is aware of your progress and any concerns that might arise? 2371.50 (6.2+1.45%=7.65, 3100*7.65=2371.50) CORRECT ANSWER If an employee earns $31,000 per year, what is the amount of FICA that the business pays on the employee? profit high, vandalism low CORRECT ANSWER What is the purpose of just in time deliveries? OSHA 300 CORRECT ANSWER Which of the following forms should you record injury or illness when a physisican or other licensed health care professional recommends that the worker stay at home but the worker decides to come to work anyways? does not approval of all plans CORRECT ANSWER Which of the following is not an obligation by the contractor? ( complete work according to plans, secure appropriate building permits, keeping job site safe) bookkeeping CORRECT ANSWER The first step in the accounting process is _______? 168 CORRECT ANSWER There are _____ consecutive hours to a work week?

pass through wages CORRECT ANSWER S corporation taxes are recognized as _______wages? 6 CORRECT ANSWER A contractor may remain on inactive status for a period of time not to exceed _____ consecutive years? Protect your family from lead in your home CORRECT ANSWER When working in a dwelling that was built before 1978 the employeer is to provide each occupant with a pamphlet titled? Tax documentation CORRECT ANSWER Which of the following is not one ofthe three key functions of a business plan? aim high CORRECT ANSWER When negotiating one should __________ unit price method CORRECT ANSWER A ___________ bundles all cost factors for the entire task deferment CORRECT ANSWER Which is not reconginized as effective time management? Georgia CORRECT ANSWER Arkansas has reciprocal agreements with all of the following states except Clean water CORRECT ANSWER Which of the following laws establishes the basic structure for regulating discharges of pollutants in the waters of the Untied States

65 CORRECT ANSWER Medicare will help defray hospital cost when an individual turns _____ years of age? square-foot-method CORRECT ANSWER A _____ is based on calculation based on footage multiplied by unit cost seller CORRECT ANSWER FOB freight prepaid requires ____ to pay shuipping charges rent CORRECT ANSWER for short term job, the best option is to ____ equipment employees CORRECT ANSWER When determining activity duration, it is important to have imput from which of the following standard threshold shift CORRECT ANSWER ________ is the change in hearing threshold relative to the baseline auidiogram for the employee, of an average of 10 decibles 7,000 CORRECT ANSWER Failure to abate prior OSHA violators has a penalty amount not to exceed _____ for each day the violation continues non-cash CORRECT ANSWER depreciation is considered a ____ expanse? multiple decision makers CORRECT ANSWER Which is not an advantage to a partnership? cash receipts and sales journal CORRECT ANSWER What is used when sales is charged to a customer or whencash comes in?

Feb 28 CORRECT ANSWER When is the deadline for filing copy A of form 1096 EPA CORRECT ANSWER Which authority regulates clean water act? partnership CORRECT ANSWER All businesses must file an annual income tax return except? cash garantee CORRECT ANSWER which is bank letter of credit Counter offer CORRECT ANSWER Which of the following is not the key elements to a contract?-acceptance, offer, consideration are float time CORRECT ANSWER is the time remaining after a task has been complet Miller act CORRECT ANSWER The ______ requires performance and payment bonds on federal jobs? 4.25 CORRECT ANSWER What is the minimum wage for individuals under the age of 20 during their first 90 consecutive days bar chart CORRECT ANSWER __________ shows the activity of duration and sequence of tasks to be completed? annually CORRECT ANSWER corporations must file a franchise tax report

Manager CORRECT ANSWER business ethic begins with the but not counter offer CORRECT ANSWER Which of the following is not consideration as acceptance to a contract- date, consideration, signature are cost plus method CORRECT ANSWER When using the _______ the contractor is reimbused for actual cost of labor and material. the contractor adds a markup fee for overhead and profit 48.01 (15.50=7.50, 30.90=27.00,101.50=15.00, so 7.50+27.00+15.00=49. then 49.50.03=1.49 discount, 49.50-1.49=48.01 answer) CORRECT ANSWER A contractor is going to purchase the following from the local hardware store, 15 feet 1/2 schedule 40 PVC at .50per foot, 30 feet 1inch schedule 40 PVC at .90 per foot, 10 feet 2-inch schedule 40 PVC at 1.50 per foot. What is the lowest possible cost assuming the terms are 3 % /10 net 30? I can do it all method CORRECT ANSWER delegating provides for all but the following, it does develop employees, accomplish tasks, concentrate stragically but does not establish goals CORRECT ANSWER which of the following is the purpose of a business plan? 50,000 CORRECT ANSWER a contractors license is required for any project of _______ or more 200 CORRECT ANSWER If a contractor is guilty of a misdomeaner, how much of a maximumpenalty can occur?

Balance sheet CORRECT ANSWER Which of the following financial statements is comprised of assets and liabilities? general journal CORRECT ANSWER where would depreciation of equipment be first entered? 3% CORRECT ANSWER A penalty can occur for a contractor not to exceed how much of the total project being preformed? 299,584 (9.2+13.9+10.7=33.8 which meand direct cost are 66.2 of the bid so 198,325/.662=299,584) CORRECT ANSWER A job has adirect cost of 198,325, project overhead of 9.2%, company overhead of 13.9%, and a desired profit of 10.7%, What will be the correct bid? 100 CORRECT ANSWER A federal job a performance bond usually _____ percent of the contract price 34,000 (chapter 14-4) CORRECT ANSWER What is the net income, when there is an income of 92,000, expanses of 24,000, and cost of goods sold of 34, April 30th CORRECT ANSWER When the quarter ends March 31st, FUTA taxes must be paid by? W-5 CORRECT ANSWER If one is to recive earned income credit, one should use which IRS form? restrictive of specs codes CORRECT ANSWER When conflict exists between plans and specifications, one must follow _______

small CORRECT ANSWER Petty cash is used to make _____ payments 10 CORRECT ANSWER OSHA records must be kept by employeers if more than _____ employees joint venture CORRECT ANSWER A job is estimated to cost 1 million dollars, however two companies have a cap of 50,000, they can leagally do this job if they? 940 CORRECT ANSWER What form is used to report FUTA taxes? cancel the project CORRECT ANSWER In the event of a faulty contractor, the surety may do all but this, they can pay out amount of bond, they can arrange for hiring a new contractor, and they can provide additional financing but not A relationship between 2 or more people CORRECT ANSWER A partnership is? 5/1 (chapter 14-6) CORRECT ANSWER What is the liquidity ratio (or current ratio) when there are currents assets of 15,000 and current liabilities of 3,000? undue hardship CORRECT ANSWER Which of the following is excluded from "reasonable accommodations" continuance of organization in case of death of the partner CORRECT ANSWER Which is not a key characteristic of a partnership? they do keep separate bank accounts, maybe orally committed, all owners have personal liabilties

Assets= Liabilities + Owners Equity CORRECT ANSWER Typically a balance sheet is defined as which? common law bonds CORRECT ANSWER When filing a bond, the purposeis outlined in the language for _____? limited personal responsability CORRECT ANSWER Which is an exclusive to an advantage of a sole proprieter? Obsolete equipment is returned to the owner CORRECT ANSWER Which of the following is not an advantage to equipment ownership? property tax CORRECT ANSWER Which of the following is not a business tax? property improvments CORRECT ANSWER Which of the following is NOT a form of workers compensation provided by Arkansas? errors CORRECT ANSWER Professional liability insurance is used for which of the following 50 CORRECT ANSWER If an employee earns 10 per hour and worked 50 hours, how much is the over time premium? 35,000 (chapter 14-8) CORRECT ANSWER What is the bill overage/deficiancy when there are cummulative earnings of 90,000 and amount billed is 55,000? competitive advantages, my customers, growth oppertunities CORRECT ANSWER of the following which is not considered the best way to maximize marketing potential?

When punch list iteam are complete CORRECT ANSWER when is payment due? 3.7 CORRECT ANSWER a new employer just begining in Arkansas is assigned a new employer rate of _____ percent and will remin at that rate until three full years of benfit risk has beenestablished? 7 CORRECT ANSWER how many individuals sit on the board? cost code system CORRECT ANSWER The first step in a job costing system is to provide for which lump sum CORRECT ANSWER the best contract used by the owner is the ____? Addendum CORRECT ANSWER A(n) ______________ is issued prior to the execution of a contract equipment theft CORRECT ANSWER ________ is the type of insurance one would purchase for tools Loss of 1000 ( 3200+9000=41000-36000=5000 so 5000-6000=-1000) CORRECT ANSWER For one month a company bills out 48000 in completed work, and receives 32000 in payments plus9000 from previous months billing. The pay their total bill for 36000 to supply houses for this month purchases, and another 6000 to supply houses for last months purchases. Using cash accounting method and NOT considering any other revenue or expenses, what is the company net income for the month?

Partnering CORRECT ANSWER What is the name of the process when facilitator meets with the major participants in a project, prior to the commencement of theproject, to identify the shared goals of all participants? Circular E (Chapter 15-3) CORRECT ANSWER when determining taxes which form will help you? SS-4 CORRECT ANSWER Which of the following is used to obtain an EIN? the pay wages to employees tataling 1500 or more in any quarter CORRECT ANSWER Generally, employers must pay both state and federal unemployment taxes if? DO CORRECT ANSWER which of the following insuranses will protect an orginazation officers? 2200 (2800-600) CORRECT ANSWER A contractor puts in a claim under comprehensive standard generalliabilty policy. The policy has no additional coverage, riders or floaters and has 600 deductable per occurance. The claim is for a job site accident that caused 3000 of injury to employess, 2800 of injury to a pedestrian , 3300damage to the the contractors equipment and 2750 loss of project materials purchased by the contractor. the insurance company is liable for? 111250 (11%+9%=20% overhead there for the direct cost are 805 OF THE BID 89000/.80=111,250) CORRECT ANSWER a job direct cost 89000 the project overhead for the job is 11% and the company overhead is 9 % not including profit, what willthe bid be? IT DOES NOT HAVE LIMITED LIFE OF THE BUSINESS CORRECT ANSWER Which of the following does not apply to c corporation, it does

availability of capital resourses, it does have transfer of ownership, it does have seperate legal entity 1 year CORRECT ANSWER How long do the chair, vise chair and secretary serve? 75 CORRECT ANSWER What is the maximum amount of share holders permitted within a S corporation is? 10 CORRECT ANSWER A notice must be given by the contractor to the owner _____ days prior to the filing a lien against the owner? 19,214 (1075=750,20200=4000, 30*290=8700, 750+4000+8700=13450/.70=19,214) CORRECT ANSWER What is the bid for the following when there is a combined profit and overhead of 30%, 10 units at 75. each, 20 units at 200. each , 30 units at 290. each 50 CORRECT ANSWER how much is the renewal fee for license? employer CORRECT ANSWER Who is responsibilty to understand OSHA 4 years CORRECT ANSWER How long must an employer keep tax records for/ managing cash flow isnt CORRECT ANSWER Which of the following is not reward for owning an enterprise- being your own boss, making decisions, flexibility of time are 14 days CORRECT ANSWER A permit is obtained on Aug 1st, the materials are to be delivered Aug 8th, The materials are needed when labor begins on Aug 11. It

is estimated that 15 days of labor are required, The crew will work every day, including weekends and holidays. The project is scheduled to be completed on Sept 8th. How many float days are available for the labor for this project? miller act CORRECT ANSWER The ___________ states that one can not file against a public property 10 days CORRECT ANSWER Any person aggrived by an action or decision of the residential building contractors committee may apeal to the contractors licensing board within ________days contingency time CORRECT ANSWER Which of the following establishes a buffer between tasks the foreman does not procures materials CORRECT ANSWER The foreman assists the project superintendent by all but which of the following? he does inspects areas, trains employees, and reviews project plans indemnification CORRECT ANSWER __________ absolves the indemnified party from any payment for losses and damages inocurred by a third party. between 12000 and 16000 ( the only overhead is going to be the salary of superintendent 40000/12=3333.334 months) CORRECT ANSWER What is the total project over head that lasts 4 months and has following costs, labor 5000, material 10000, equipment rentals are 2000, superintendent annual salary is 40000, office rent is 500 per month office utilities are 400 per month. more than 2,000 (.1035000=3500 based on $100 3500/100=35 office payroll premium, 2.0058000=116000/100=1160.00 field sup. .36325000=117000/100=1170.00 field employees, 35+1160+1170=2365-

5%=2246.75) CORRECT ANSWER a contractor pays workers compensation of .10per $100 of office employee payroll, 2.00 per $100 of field supervisor payroll, and .36 per $100 of field employee payroll. total office employee payroll is 35000, total field supervisor payroll is 58000, total field employees is 325000. the contractor receives a discount of 5% of total premiums for having safety program in place. the total workers compensation for th year is? the carpenter is an employee and is owed 13860 for the project (560 hours *18=10080, 140 *27=3780 overtime , 10080+3780=13860 CORRECT ANSWER What is the total compensation and employment status for a carpenter, given the following information? A contractor hires a carpenter to do the finish work for a 10 home project for $18 per hour, the contractor provides all of the materials and equipment, such as a table saw, the carpenter provides all of the own hand tools. the contractor and carpenter agree that all of the homes are to be completed within 60- eight hour working days, without overtime, the contractor provides the carpenter with a schedule of the order in which the homes are to be worked on. the contractor provides a helper to assist the carpenter and sets the work schedule each day. the carpenter spends 700 hours to complete this project including 140 hours of overtime. S corporation CORRECT ANSWER Which of the folowing entities share no personal liability? I-9 CORRECT ANSWER Which form establishes eligibility and identy to work in the united states? quantity take off CORRECT ANSWER __________ is an accurate estimate of all the costs that are associated with the project simular. accrual CORRECT ANSWER The _________ method reconizes income when the employer has done the work, yet has not got the income yet

right to control CORRECT ANSWER an employer is generally subject to the business instructions about all except which address code CORRECT ANSWER which is not apart of cost code system bonds CORRECT ANSWER company overhead includes all but the following 10 years CORRECT ANSWER OSHA records must be kept for 1/3 (chapter 14-7) CORRECT ANSWER What is the return assets if there is a net profit (after taxes) or 16000 and total assets of 48000 unit price method CORRECT ANSWER A _________ bundles all cost factors for the entire task CGL CORRECT ANSWER Which of the following insurance will cover an individual when a hammer drops off a roof and strikes a by stander on the foot. 3 party bond CORRECT ANSWER A surenty bond is typically a _________ party bond performance bond CORRECT ANSWER which of the following bonds garentees that the contractor will complete the project? 4 CORRECT ANSWER A residential project is defined as any project consisting of one but no more than ______ units

1 year CORRECT ANSWER How long can a contractor loose his license for, based on a decision by the board, for subsequent violations? generate revenue CORRECT ANSWER Which is not a purpose of a contractors license? it is for the welfare, health, and safty but not what? OSHA CORRECT ANSWER Who over sees compliance with the MSDS 60 days CORRECT ANSWER renewal notices are sent out _______days prior to the experiation date Income statement CORRECT ANSWER Which one of the finacial statements would you find depreciation on? owner CORRECT ANSWER Who is protected by progress payments? Modifical CORRECT ANSWER typically which of the following is not a part of the construction drawings? there are Civil, Structural, and electrical parts to drawings but not 71000 (chapter 14-3) CORRECT ANSWER An owner of business has 32000 in liabilities and 39000 in equity, what are the assets? 5 years CORRECT ANSWER how long does a board memeber serve in a term? architect CORRECT ANSWER who determines progress / final payments

30 days CORRECT ANSWER how many days prior to board meeting must an application be filled? manage daily site operations CORRECT ANSWER Which of the following is not a function of a project manager? he does review shop drwings, prepares budgets, ensures compliance with codes but he does not 2 years CORRECT ANSWER how many years have to pass before when a license expires to be determind nil? understanding of the contract CORRECT ANSWER The most important aspect of a contract is post construction CORRECT ANSWER projects life cycle entails, job completion, construction phase, and contract award but not 3 years CORRECT ANSWER When working in a dwelling that was built berore 1978, the employer must provide records of activity for ____ years 1040 & schedule SE CORRECT ANSWER for federal taxes, a sole propieter is to use self employment tax form at least 10 years CORRECT ANSWER how many years of experiance must at least 5 board members have? maintenace bond CORRECT ANSWER a ______ bond guarantees against defects material or workmanship

programmed inspections CORRECT ANSWER which of the following programs applies to high injury sites? income statement CORRECT ANSWER what type of statement is used to establish revenues and expenses over a period of time? 1 year or less CORRECT ANSWER What is meant by current assests inclusion of oportunities CORRECT ANSWER which of the following is not a pitfall to a business plan? tax documentation CORRECT ANSWER which of the following is not one of the tree key functions of a business plan? loan document, planning tool, and benchmarking tool are but whats not 10 employees CORRECT ANSWER The EAP is allowed to be orally communicated for fewer than _______ employees direct costs CORRECT ANSWER fixed assets include all but which of the following wage garnishment law CORRECT ANSWER _________ prohibits firing due to taking of property 6 years CORRECT ANSWER a contractor may stay inactive status for a period of time not to exceed _____ consecutive years 5 years CORRECT ANSWER how long do you save OSHA 300 log, the privacy case list, the anual summary and the OSHA 301 incident reports?

5 % CORRECT ANSWER if taxes are paid 15 days late the tax penalty is ____ of the tax liability progress payment CORRECT ANSWER to help with cash flow one should use who is permitted to sign debt instruments CORRECT ANSWER when forming a partnership, questions should include all of the following except, how profits distrubuted, do partners agree on nature of business, are we gro long term, but not $50,000 CORRECT ANSWER you are a monthy tax depositor if your total payroll tax liability for the previous four quarters was less than balance sheet CORRECT ANSWER what type of finacial statement is used to establish a particular point in time 30 days CORRECT ANSWER if an employer retaliates agaist an employee, the employee must notify OSHA within ____ days chemical CORRECT ANSWER The MSDS provides for 2 main purposes, one is product information the other purpose is ________ information Jan 31 st CORRECT ANSWER state unemployment tax reports are due by 3 % or .3 CORRECT ANSWER the rate for corporation with stock ____ % of the outstanding capital stock equipment theft CORRECT ANSWER type of insurance for tools

copyright CORRECT ANSWER which of the following is not covered in an employee handbook payment bond CORRECT ANSWER which of the following bonds insures that the contractor has paid the subcontractors