Florida Contractors Manual-3 Flashcards
1
Q
- Which construction site requires a licensed contractor for the job?
A. State university
B. Federal courthouse
C. Bank
D. Post office
A
- C 2021: 2-18, 2-19
2017: 2-6, 2-7
A bank is not government property and requires a licensed contractor for the job.
2
Q
- How long is the company required to retain OSHA 300/300A logs?
A. 3 years
B. 4 years
C. 5 years
D. 7 years
A
- C 7-16
3
Q
- An unfair labor practice charge must be received by the regional office with jurisdiction over
the area where this alleged unfair labor practice occurred. What is the time limit to file this charge?
A. 6 months
B. 1 year
C. 1 ½ years
D. 3 years
A
- A 5-14
4
Q
- A contractor must serve a copy of the claim of lien on the owner and lender (if any) within how
many days of the date the claim of lien is recorded?
A. 15
B. 30
C. 60
D. 90
A
- A 2021: 9-31
2017: 9-30
5
Q
- Which of the following must be true for a person to qualify for a state certification of
competency?
A. Be a resident of the state of Florida
B. Be a minimum on 21 years of age
C. Be of good moral character and submit a financial statement
D. Be of good moral character, be at least 18 years of age and pass an examination
A
- D 2021: 2-68: §489.111
2017: 2-76: §489.111
6
Q
- What type of insurance must all certified contractors carry and maintain to work in the state of
Florida?
A. Fire, builder’s risk, worker’s compensation
B. Public liability and property damage in the amounts as set by the board
C. Liability, property damage and completed operations in the amounts as set by the board
D. Auto, independent contractor’s liability, completed operations
A
- B 2021: 2-16
2017: 2-19
7
Q
- According to the Federal Unemployment Tax Act, if a contractor acquires a business from someone
else who was an employer liable for FUTA tax, you .
A. May count the wages that employer paid to the employees who continue to work for you when you
figure the wage limit
B. Must pay a tax rate based on the premise that you are a new employer with new employees
C. You may pay taxes based on percentage of days in balance of fiscal year
D. May count the wages that employer paid to up to three employees who continue to work for you
when you figure the wage limit
A
- A 2021: 3-193 (2nd printing / 2021 IRS Circ. E)
2021: 3-186 (1st printing / 2016 IRS Circ. E)
2017: 3-182
8
Q
- Automobile insurance rates are filed based on which factors?
A. Different size vehicles, distance of travel, various uses of the vehicles
B. Age and condition of vehicles, distance of travel, various uses of the vehicles
C. Different size vehicles, condition of vehicles, various uses of the vehicles
D. Various uses of the vehicles, different size vehicles, age of vehicles
A
- A 4-12
9
Q
- A proposed short-term project schedule should be reviewed by all the following except________________.
A. In-house staff
B. Subcontractors
C. Critical material vendors
D. Building department officials
A
- D 10-64
10
Q
- Florida’s right-to-work laws prohibit:
A. Union Shop Agreements
B. Agency Shop Agreements
C. Maintenance of Membership Agreements
D. All of the above
A
- D 5-14, 5-15
11
Q
- Which of the following statements concerning surety bonding is true?
A. Losses are not contemplated in surety bonds
B. Surety bonding is a two-party agreement
C. Surety bonding uses the principal of indemnity to spread the losses among policy holders
D. Surety bonding uses the law of large numbers to determine premiums
A
- A 4-13
12
Q
- Which of the following would require a license/certification/registration number?
A. Pencils with the company name used as advertising
B. Vehicles with the company name on the outside
C. Business stationary
D. Articles of clothing with the company name
A
- B 2021: 2-77: §489.119 (5)(c) & (d)
2017: 2-87: §489.119 (5)(c) & (d)
13
Q
- The project schedule of a construction contract will state that the work is to begin at which
of the following specific times?
A. The permit issuance date
B. A particular calendar date
C. The notice of commencement of the work
D. A start date often described by a milestone
A
- D 8-13
14
Q
- Claims arising from damages that resulted from a contractor’s work that has already been
finished would
be covered by a .
A. Completion bond
B. Commercial general liability policy
C. Builder’s risk insurance policy
D. Manufacturer’s and contractor’s liability policy
A
- B 4-10 – 4-11
15
Q
- Insurance premiums on Worker’s Compensation are based on employer’s classification code, and
per_____________________ of payroll.
A. $1.00
B. $50.00
C. $100.00
D. $1,000.00
A
- C 6-15
16
Q
- According to the Statute of Limitations in the Contractors Manual, how long does a person have
to bring action on a wage recovery claim?
A. 2 years
B. 5 years
C. 7 years
D. 10 years
A
- A 8-23
17
Q
- According to Contractors Manual, “categories on the income statement” include all the following
except_________________________.
A. Revenues
B. Expenses
C. Inventory
D. Income
A
- C 3-30
18
Q
- What is a disadvantage of a network analysis?
A. It is a tedious and exacting task if attempted manually
B. It prevents any deviation from the scheduling being noticed quickly
C. It prohibits splitting up the project into activities
D. It prevents determining the shortest length of time for completion
A
- A 10-58
19
Q
- Registration form SS-4 “Application for Employer Identification Number” must be filed (when
applicable) on or before the .
A. 7th day after the date on which business begins
B. 14th day after the date on which business begins
C. 30th day after the date on which business begins
D. 60th day after the date on which business begins
A
- A 2021: 1-15
2017: 1-20
20
Q
- Which of the following is an advantage of a regular corporation?
A. Limited taxation
B. Reduced record keeping
C. Tax deductible fringe benefits
D. Closely regulated
A
- C 2021: 1-11
2017: 1-13
21
Q
- According to Contractors Manual, if a construction company’s federal employment taxes for the
quarter ending September 30th have been paid on time, the IRS Form 941 for the quarter ending September
30th must be filed not later than
.
A. October 10ᵗʰ
B. October 31ˢᵗ
C. November 10ᵗʰ
D. November 30ᵗʰ
A
- C 2021: 3-160
2017: 3-156
22
Q
- Premiums for Builder’s Risk Insurance are based upon
.
A. Gross revenue from a project
B. Net profit from a project
C. Value of the work in place
D. Type of work used on the job
A
- C 4-11
23
Q
- What is the maximum fine for failure to provide appropriate notice to the Division of Workers’
Compensation for each injury/accident?
A. $100
B. $250
C. $500
D. $1,000
A
- C 6-12
24
Q
- Under Florida law, the beneficiaries of a worker killed in a covered workplace accident are
entitled to________________ .
A. A $10,000 death benefit and $7,500 in funeral costs
B. Up to $150,000 in death benefits and up to $7,500 in funeral costs
C. Two thirds the employee’s wages for life with 5% annual cost of living increase
D. Two thirds the employee’s wages for 104 weeks plus up to $7,500 in funeral costs
A
- B 2021: 6-111: §440.16 (1)(a) & (b)
2017: 6-161: §440.16 (1)(a) & (b)
25
25. What is the difference between salaried workers and hourly wage earners?
A. Salaried workers are paid for all overtime
B. Salaried workers always have a higher hourly rate of pay
C. Salaried workers never have timecards that reflect a specific job
D. Salaried workers receive the same base amount every pay period
25. D 3-49
26
26. What type of insurance is issued to protect the contractor from loss of EARNINGS as a result of
damage to or destruction of buildings or equipment?
A. Business Interruption
B. Business Floater
C. General Liability
D. Contractor Protective Liability
26. A 4-8
27
27. Within how many days after the subcontractor or supplier began work or furnished materials on
the job must a Notice to Owner be given to the owner?
A. 15 days
B. 30 days
C. 45 days
D. 60 days
27. C 2021: 9-22
2017: 9-21
28
28. Which of the following is a numbered listing of the financial categories shown in the general
ledger?
A. Chart of accounts
B. Income statement
C. Check register
D. Purchase order journal
28. A 3-25
29
29. Which method of accounting will result in the quickest revenue recognition?
A. The completed contract method
B. The partial contract method
C. The percentage of completion method
D. The percentage of billings to date method
29. C 3-79
30
30. According to the Veteran's Re-employment Laws, military leave of absence must be granted to any
permanent full time or permanent part-time employee who enlists or is drafted into active duty in
the armed forces. Discharging an employee without cause, who has been rehired and is covered under
the law, is prohibited for a period of if the employee's military service period was less
than 180 days and more than 30 days.
A. 6 months
B. 1 year
C. 1 year and 6 months
D. 2 years
30. B 5-45
31
31. The Employment and Training of Veterans Act applies to government contractors and
subcontractors with contracts worth at least__________ .
A. $10,000
B. $15,000
C. $75,000
D. $100,000
31. D 5-46
32
32. The Employee Polygraph Protection Act prohibits employers from requiring employees or job
applicants from taking a lie detector test unless the testing of an employee is .
A. In connection with the consumption of alcohol on the job site
B. In connection with the use of drugs or alcohol at the workplace
C. In connection with an ongoing investigation involving economic loss to the employer's business
D. In connection with the misappropriation of funds by the employee
32. C 2021: 5-51
2017: 5-50
33
33. Which of the following items is not included as part of General Conditions?
A. Substitutions
B. Workmanship and materials
C. Bid bond
D. Shop drawings
33. C 10-10
34
34. Under the "completed contract" method of revenue recognition, which one of the following
determines if the project is complete enough to recognize profit?
A. The final inspection date has been set
B. Billings totaling in excess of 98% to 99% of contract value been approved
C. The architect has issued a Certificate of Payment of Substantial Completion
D. The lending institution has rolled the construction loan into a permanent loan
34. B 3-80
35
35. According to Contractors Manual, a lawsuit to enforce an oral contract must be brought within__________________
years.
A. 2
B. 3
C. 4
D. 5
35. C 8-23
36
36. If a contractor wants to ensure construction materials completely, from the time the materials
leave the place of shipment until the materials reach their destination and are installed, the contractor
should purchase a(an) .
A. Motor truck cargo owner's policy
B. Transportation policy
C. Contractor's equipment floater
D. Installation floater
36. D 4-7
37
37. According to Contractors Manual, which party has lien rights?
A. Sub-sub-subcontractor
B. Laborer for sub-subcontractor
C. Material supplier providing materials sold just for stock and not for direct delivery to the
site
D. Material man providing materials to another material man
37. B 2021: 9-18
2017: 9-17
38
38. As a prerequisite to initial licensure or renewal of a license as certified or registered
contractor, general and building contractors must carry which of the following minimum insurance amounts?
A. $100,000 liability/$25,000 property damage
B. $250,000 liability/$75,000 property damage
C. $300,000 liability/$50,000 property damage
D. $500,000 liability/$100,000 property damage
38. C 2021: 2-131
2017: 2-157
39
39. The Lien Laws require that any person who receives funds for constructing or altering
improvement, us the funds to pay others for services and materials provided in connection with the project. A
person who does not comply with this requirement may be .
A. Subject to discipline under the Contractor Licensing Laws only
B. Criminally prosecuted under the Lien Law for a misdemeanor and subjected to discipline under the
Contractor Licensing Law
C. Criminally prosecuted under the Lien Law for a misdemeanor only
D. Criminally prosecuted under the Lien Law for felony and subjected to discipline under the
Contractor Licensing Law
39. D 2021: 9-93, 9-94: §713.345(b) - Note all are felonies
2017: 9-120: §713.345(b) - Note all are felonies
40
40. According to the Florida Statues, Chapter 489, a contractor was found guilty of allowing their
certificate to be used by uncertified persons with intent to evade the provisions of Chapter 489. The
Construction Industry Licensing Board may revoke the certificate of the contractor, require
financial restitution to a consumer, and impose an administrative maximum fine of .
A. $5,000
B. $5,000 or assess costs associated with investigation and prosecution
C. $10,000
D. $10,000 or assess costs associated with investigation and prosecution
40. D 2021: 2-83: §489.129(1)
2017: 2-95: §489.129(1)
41
41. Which is a possible penalty for knowingly making false statements, representations, or
certifications in any application, record, report, plan, or other document filed as part of the OSHA requirements?
A. Loss of license and 90 days in prison
B. Maximum fine of $5,000 or one year in prison, or both
C. A maximum fine of $10,000 or 6 months in prison, or both
D. Maximum fine of $20,000 and loss of license
41. C 7-17
42
42. A joint venture is a profit-seeking combination of two or more parties that .
A. Are registered with the Secretary of State for a specific purpose
B. Are limited to construction of a project that does not exceed the equity deposits of all
partners
C. Must have at least one licensed partner
D. Are generally limited to a specific project or undertaking
42. D 2021: 1-10, 1-11
2017: 1-12
43
43. A qualifying agent for a business organization .
A. Must requalify the business the business every two years
B. Is qualified to act for the business in all matters connected with contracting
C. Has the obligation to notify the governor when his address changes
D. Keeps the company president from having to visit the job sites
43. B 2021: 2-22
44
44. A contractor is filing Form 941 for taxes which were withheld from employees for the first
quarter of the year (January, February, and March). All the taxes were deposited when they were due. According to
Contractors Manual, what is the LATEST date (without penalty) that the contractor can file this
return?
A. April 15ᵗʰ
B. April 30ᵗʰ
C. May 10ᵗʰ
D. May 15ᵗʰ
44. C 2021: 3-162 (2nd printing / 2021 IRS Circ. E)
2021: 3-160 (1st printing / 2016 IRS Circ. E)
2017: 3-156
45
45. When does Form W-4 (Employee's Withholding allowance Certificate) expire?
A. January 31ˢᵗ
B. February 15ᵗʰ
C. When the employee gives the employer a new Form W-4
D. February 16ᵗʰ
45. C 2021: 3-172
2017: 3-168
46
46. According to the Florida Construction Lien Law, one way an owner can minimize duties under the
Construction Lien Law is for the owner to .
A. Require that the contractor obtain a payment bond
B. Post an irrevocable letter of credit
C. Record a notice of commencement
D. Require the contractor to provide him with a release of lien
46. A 2021: 9-47
2017: 9-46
47
47. The ratio that is determined by adding cash, accounts receivable and marketable securities
together and dividing by current liabilities is referred to as the .
A. Current ratio
B. Quick ratio
C. Leverage ratio
D. Debt to equity ratio
47. B 3-89
48
48. The two most commonly used liquidity ratios are the .
A. Liquidity ratio and the leverage ratio
B. Activity ratio and the quick ratio
C. Current ratio and the quick ratio
D. Liquidity ratio and the profitability ratio
48. C 3-89
49
49. A contractor enters into a written contract with a supplier for $10,000 worth of materials. The contractor then agrees orally to pay the supplier $15,000 for the materials if they can be delivered ahead of
schedule. The supplier delivers the materials ahead of schedule and the contractor refuses to pay
more than $10,000. The agreement for $15,000 is .
A. Unenforceable because the Statute of Frauds requires all contracts for goods in excess of $500
to be in writing
B. Unenforceable because the Statute of Frauds requires all contracts for personal services to be
in writing
C. Enforceable because it is an oral modification of an existing contract made between contracting
parties
D. Enforceable because the Statute of Frauds does not require sales of goods between merchants to
be confirmed
49. A 8-6, 8-7
50
50. Which of the following does not have lien rights?
A. Materialman supplying materials to a subcontractor
B. Materialman supplying materials to a sub-subcontractor
C. Engineer with a direct contract with owner
D. Materialman supplying materials to another material man
50. D 2021: 9-19
2017: 9-18
