Vocabulary Flashcards
Arbitration Program
An informal process in which the people in conflict agree to let a neutral third person or panel make a final decision in a dispute among them
Accusation
A public, written statement of charges CSLB has filed with the Office of the Attorney General that specifies statutes and rules a contractor or home improvement salesperson is alleged to have violated. It may result in a hearing to determine whether a licensee has violated the law and whether the license should be revoked, suspended, and/or placed under some type of restriction by the Registrar.
Association Date
The date a person is added to a license
Certificate of Insurance
A certificate issued by a contractor’s insurance company and submitted to CSLB as proof of workers’ compensation insurance coverage for employees.
Classification
Refers to the type of trade work a contractor may perform, for example, plumbing, electrical, etc. (CSLB has 43 license classifications.)
Disassociation Date
The date a person is removed as a member of the personnel of record on a license
Owner-builder
Any individual, or group of individuals, who own the property on which they plan to construct, alter, repair, improve, or remodel a building or structure
Qualifying Individual
The individual who meets the experience and examination requirements for a license (Every active license must have a designated qualifier.)
Sole Ownership
The type of license issued to an individual
Apparent Power
Total power in an AC circuit, both dissipated and absorbed/returned is referred to as apparent power. Apparent power is symbolized by the letter S and is measured in the unit of Volt-Amps (VA).
True Power
Power dissipated by a load is referred to as true power. True power is symbolized by the letter P and is measured in the unit of Watts (W)
Reactive Power
Power merely absorbed and returned in load due to its reactive properties is referred to as reactive power. Reactive power is symbolized by the letter Q and is measured in the unit of Volt-Amps-Reactive (VAR)
Inductive Reactance
Inductive reactance is an opposition to the change of current through an element.
Capacitive Reactance
Capacitive reactance is an opposition to the change of voltage across an element.
Quick Ratio
The quick ratio is a financial ratio used to gauge a company’s liquidity. The quick ratio is also known as the acid test ratio. The quick ratio differs from the current ratio in that some current assets are excluded from the quick ratio. The most significant current asset that is excluded is inventory.
Umbrella Insurance
Umbrella insurance refers to liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies.
FUTA
The Federal Unemployment Tax Act (or FUTA, I.R.C. ch. 23[dead link]) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service. In some cases, the employer is required to pay the tax in installments during the tax year.
FICA
Federal Insurance Contributions Act (FICA) tax /ˈfaɪkə/ is a United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, the disabled, and children of deceased workers.
Retention
Retention is a percentage (often 5%) of the amount certified as due to the contractor on an interim certificate, that is deducted from the amount due and retained by the client. The purpose of retention is to ensure that the contractor properly completes the activities required of them under the contract. Retention can also be applied to nominated sub-contractors, and the main contractor may also apply retention to domestic sub-contractors. In most contracts retention can be held up to 60 days.
Depreciation
Depreciation is an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property. It is an annual allowance for the wear and tear, deterioration, or obsolescence of the property.
Escrow Account
An escrow account is an account that temporarily holds funds for other parties, primarily for real estate purposes – although other transactions may require an escrow account as well. An escrow company is a neutral third party that temporarily holds the funds, which are disbursed when specific terms and conditions have been met.
Income Statement
‘Income Statement’ A financial statement that measures a company’s financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities.
Bid Bond
A bid bond is issued as part of a supply bidding process by the contractor to the project owner, to in hopes guarantee that the winning bidder will undertake the contract under the terms at which they bid.
Current Ratio
The ratio is mainly used to give an idea of the company’s ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point.
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