Test 2 Flashcards
A notice to cancel a home solicitation contract will be effective:
When the written notice is deposited in the mail
Which of the following does not have to be included in a home improvement contract if a joint control addendum is used?
A schedule of payments
When a bond is required on larger jobs, a bond co. will charge approximately BLANK of its fee based on the contract price.
1% - 2%
An RME can qualify for how many companies at one time?
Only one company
A Notice To Owner is given to inform the owner:
That the property can be liened
Who is the Preliminary Notice not sent to?
The subcontractors
Which of the following is not considered overhead?
Storage
When it comes to liens against an owner of a job:
The owner is responsible for paying for the work on a job.
New contractors need to establish credit with suppliers as well as a certain amount of start up capital. The most common source of start up capital for a small contracting business is?
From equity funds
A contractor should incorporate the chart of accounts into his:
Journals and ledgers
The net worth on a corporate balance sheet represents:
The claim of the owner on the assets the business has
Direct labor burden includes:
The taxes and insurance for employees
To a contractor, why is overhead so important?
…important in determining accurate bids.
The depreciation is shown on an income statement as:
In the expense statement section
