NAS 1 Flashcards
1
Q
- FOB freight prepaid requires the __________ to pay for shipping charges.
A. Contractor
B. Buyer
C. Seller
D. Subcontractor
A
- C 13-11
2
Q
- ________________ is NOT a member of the supervisory team.
A. A Foreman
B. A Material expediter
C. The Owner’s representative
D. A Project manager
A
- D 8-7
3
Q
3.With __________ scheduling, you can link project tasks to specific dates such as delivery dates, payment
schedule and employee vacations and holidays.
A. Calendar
B. Bar chart
C. Gantt
D. Critical Path Method
A
- A 8-3
4
Q
- When working in dwelling that was built prior to 1978, the employer is to provide each occupant with a
pamphlet titled ________________.
A. Protect your family from lead in your home
B. Protect your loved ones from lead in your home
C. Protect your family and your friends from lead in your home
D. Pamphlets are not required
A
- A 11-13
5
Q
- Employers that violate child labor laws are subject to civil penalty of up to ____________ per worker for
each violation.
A. $2,500
B. $5,000
C. $10,000
D. $11,000
A
- D 10-2
6
Q
- A lump sum contract on a project has a total contact price of $260,000. Retainage has been held back at 10%.
The contractor has received progress payments for 75% of the project. The contractor submits a request for
final payment for _______________.
A. More than $80,000
B. Less than $50,000
C. Between $50,001 and $60,000
D. Between $60,001 and $70,000
A
- A 7-3 and 13-9; 13-10
$260,000 x .10 (10% retainage) = $26,000 held back in retainage
$260,000 - $26,000 = $234,000 due in progress payments
$234,000 x .75 (75% received) = $175,500 received in progress payments
$260,000 - $175,000 = $84,500 final payment
7
Q
- _________________ is NOT a key characteristic of a sole proprietorship.
A. The termination at death of the owner
B. Business expenses and personal income are not separated
C. The net income is taxed as ordinary income
D. The owner/owners must bear all responsibility
A
- B 2-1
8
Q
- The quick ratio (or acid test ratio) for a company that has current assets of $28,000, an inventory of $4,000,
and current liabilities of $6,000 is ____________.
A. 4/1
B. 1/4
C. 7/1
D. 1/7
A
- A 13-6
9
Q
- An Emergency Action Plan is required to be in writing if any employer has ________employees or more.
A. 2
B. 8
C. 10
D. 11
A
- D 11-3
10
Q
- The ___________ are responsible for and pays into FUTA.
A. Property owner
B. Building contractor
C. Employer
D. Employee
A
- C 14-4; 14-5
11
Q
- The purpose of just-in-time deliveries is to keep _________________ .
A. Inventory cost low and vandalism high
B. Inventory cost low and vandalism low
C. Inventory cost high and vandalism high
D. Inventory cost high and vandalism low
A
- B 8-9
12
Q
- Business ethics will (is) NOT __________________________.
A. Safeguard your reputation
B. Help to avoid litigation
C. The Right thing to do
D. Make you company more money
A
- D 4-2
13
Q
- _____________ is NOT one of the rewards for being an Entrepreneur.
A. Having flexibility of time
B. Making your own decisions
C. Being your own boss
D. Managing cash flow
A
- D 1-1
14
Q
- ______________ is NOT an impairment that is covered under the ADA.
A. AIDS
B. HIV infection
C. Paralysis
D. A broken arm
A
- D 10-6; 10-7
15
Q
- A _____________ is a business arrangement that is formed between one or more entities for one specific
project.
A. Partnership
B. Corporation
C. Joint venture
D. Limited Liability Company
A
- C 2-6
16
Q
- The standard markup in the construction industry is ______________.
A. 10%
B. 15%
C. 18%
D. 11%
A
- B 6-6; 6-7
17
Q
- _______________ is NOT an advantage of a partnership.
A. Formation is easily done
B. Multiple decision makers
C. Direct profit rewards
D. Larger management base
A
- B 2-2
18
Q
- The _______ prohibits the firing of any employee if their income is being withheld to pay off incurred debt.
A. Wage Garnishment Law
B. Service Contract Act
C. Employee Polygraph Protection Act
D. Right to Work Law
A
- A 10-7
19
Q
- The maximum number of shareholders permitted within an S corporation is ______________.
A. 25
B. 55
C. 75
D. 100
A
- D 2-3 and 2-5
20
Q
- An employee is NOT generally subject to business instructions about _____________ to work.
A. When
B. Where
C. How
D. Details on how
A
- D 12-2
21
Q
- Delegating does NOT help you to _________________.
A. Give up control of certain tasks
B. Develop your employees
C. Ensure that all the tasks get accomplished
D. Make your company more money
A
- D 4-1; 4-2
22
Q
- ________________ is NOT a key element of a contract.
A. Offer and Acceptance
B. Consideration
C. Competent Parties
D. Understanding the agreement
A
- D 7-1
23
Q
- If the contact is ambiguous, the interpretation will go against ________________.
A. The party who accepted the contact
B. The party who wrote the contact
C. The Owner
D. The Contractor
A
- B 7-9; 7-10
24
Q
- A ___________ is used when an owner contracts with one company to complete the construction process
from the start to finish and purchase land.
A. Single prime
B. Design/build
C. Turnkey
D. Fast-track
A
- C 7-6
25
25. The ____________ determines progress/final payments.
A. Architect
B. Owner
C. Lawyer
D. Accountant
25. A 7-2; 7-3
26
26. The Construction Industry Payment Protection Act of 1999 states that ___________.
A. a payment bond is not required
B. waivers of Miller Act payment bond protections are permitted before work begins
C. the payment bond cannot be less that a performance bond
D. subcontractors are not permitted to notify contractors with an intent to sue
26. C 3-8
27
27. The total Project overhead on a four (4) month project would be ___________ . Costs are: Labor is $5,000
per month; Materials are $40,000; Equipment rentals are $2,000 per month; Superintendent’s annual salary
is $40,000; Office rent is $500 per month; and Office utilities are $400 per month.
A. Between $12,000 and $16,000
B. Less than $12,000
C. Between $16, 000 and $20,000
D. More than $20,000
27. A 6-6; 6-7
The only Project overhead expense would be the salary of the superintendent.
The other expenses are direct job expenses and Company overhead expenses.
$40,000 ÷ 12 = $3,333.33 x 4 months = $13,333.33
28
28. Exempt Forms W-4 expire on____________.
A. February 15
B. February 16
C. April 30
D. December 1
28. B 14-6
29
29. _____________ would incur double taxation.
A. 1Exam Prep, Inc
B. ABC Construction, DBA
C. Construction Done Right, LLC
D. XYZ Contractor, LP
29. A 2-3
30
30. _______________ is NOT considered as an acceptance to a contract.
A. Signature
B. Consideration
C. Date
D. Counteroffer
30. D 7-2
31
31. _______________ is used by the owner to ensure completion of the construction project.
A. A punch list
B. A performance bond
C. The Retainage
D. Final payment
31. C 7-3
32
32. The Family and Medical Leave Act does NOT allow for ____________________.
A. Maintenance of group health insurance
B. 12 weeks unpaid job-protected leave
C. Adoption of a child
D. Care for first cousin with a serious health condition
32. D 10-7
33
33. To determine how much to withhold in taxes from an employee, the employer uses the employee’s
_____________form.
A. W-2
B. W-3
C. W-4
D. W-5
33. C 14-4
34
34. A contractor pays a workers’ compensation rate of $0.10 per $100 of office employee payroll, $2.00 per
$100 of field supervisor payroll, and $0.36 per $100 of field employee payroll. Total office employee
payroll for the year is $35,000. Total field supervisor payroll is $58,000. Total field employee payroll
$325,000. The contractor receives a discount of 5% of total premiums for having a safety program in place.
The total workers’ compensation for the year is ___________.
A. Less than $1,300.00
B. Between $1,300.00 and $1,700.00
C. Between $1,700.00 and $1,900.00
D. More than $2,000.00
34. D $0.10 x $35,000 = $3,500 (based on 100)
$3,500 ÷ 100 = $35.00 (office payroll premium)
$2.00 x $58,000 = $116,000 /100 = $1,160.00 (Field S)
$0.36 x $325,000 = $117,000 /100 = $1,170 (Field E)
$35.00 + $1,160.00 + $1,170.00 = $2,365.00 – 5%*($2,365.00) = $2,246.75
35
35. _______________ does NOT apply to a C corporation.
A. Transfer of ownership through sale of stock
B. Limited life of the business
C. Separate legal entity
D. Availability of capital resources
35. B 2-3
36
36. Minors ages 14 or 15 years of age may NOT work in _________________ jobs.
A. Office
B. Clerical
C. Sales
D. Construction
36. D 10-2
37
38. For federal taxes, a sole proprietor is to use self-employment tax form __________.
A. 1040 & Schedule SE
B. 1040 & Schedule C
C. 1040 – ES
D. 940 – EZ
38. A 14-2
38
37. If D & K Construction wanted to limit their liabilities, they should become a(n) _______.
A. DBA
B. C corporation
C. LLC
D. GP
37. B 2-3
39
39. The ________________ method recognizes income when the employer has received it.
A. Appreciation
B. Cash
C. Accrual
D. Depreciation
39. B 13-7
40
41. ________________ insurance will protect an organization’s officer.
A. Key Man Life
B. Commercial General Liability
C. Director’s and Officer’s Liability
D. Professional Liability Insurance
41. C 3-4
40
40. It is a _____________ responsibility to understand OSHA.
A. Property owner’s
B. Building contractor’s
C. Employer’s
D.Employee’s
40. C 11-1
41
42. ___________percent of an Underground Storage Tank must be underground.
A. 10
B. 15
C. 20
D. 5
42. A 11-12
42
43. A ___________ bond guarantees that the contractor will complete the project.
A. Bid
B. Payment
C. Performance
D. Completion
43. C 3-7
43
44. Safety data sheets (SDS) are a requirement of OSHA’s Hazard Communication Standard (HCS) and the
purpose of HCS is to ______________ in the workplace.
A. Provide chemical product information
B. Ensure chemical safety
C. Provide chemical usage information
D. Evaluate different chemicals to use
44. B 11-6
44
45. Unemployment insurance is for employees who have been ____________.
A. Laid off
B. Fired
C. On a paid vacation
D. Injured at the construction site
45. A 3-5
45
46. The ____________method recognizes income when the services occur.
A. Appreciation
B. Cash
C. Accrual
D. Depreciation
46. C 13-7
46
47. _____________________ is NOT a disadvantage of the completed contract method.
A. The books and records do not show clear information on operations
B. The income can be bunched into a year jobs are completed
C. The losses on contracts are not deductible until the contracts are completed
D. The income or loss is reported in the year that contract is completed
47. D 13-7
47
48. _____________ NOT an advantage of a partnership.
A. Ease of formation
B. Direct profit rewards
C. All general partners have unlimited personal liability
D. Larger management base than that of a sole proprietorship
48. C 2-2
48
49. Depreciation of equipment would be entered in the ______________ first.
A. General journal
B. General ledger
C. Disbursements journal
D. Job cost record
49. A 13-2
49
50. Fixed assets include all of the following except for ___________________.
A. Land
B. Buildings
C. Equipment
D. Direct costs
50. D 13-3
50
