Copyri

ght

Rob Este

ll

Business & Finance Final Exam 2 Page 1

Business and Finance

Final Exam 2 1. An eligible employee earned an average of $245.00 per week during the last base period. Under Florida Reemployment law, what will the weekly unemployment payment be?

A. $112

B. $123

C. $132

D. $245

2. Which statement regarding leases is not true?

A. a lease-purchase agreement for equipment may require little or no initial investment

B. depreciation can be claimed on equipment that is lease-purchased

C. an immediate tax deduction is not available for the cost of monthly leases

D. for equipment that will be used for a brief period of time, leasing is cheaper than owning

3. The unemployment compensation laws apply to any employer who has one or more employees, and

either employed at least one employee for any portion of a day for 20 weeks during a year, or paid ______.

A. $400 in wages during any calendar week

B. $600 in wages during any calendar month

C. $1,000 in wages during any calendar quarter

D. $1,500 in wages during any calendar quarter

4. The Agreement for the Work, between Owner and Contractor, will be written on AIA Document _____?

A. A101

B. A201

C. A401

D. A701

5. Which person is required to be licensed under Florida Statutes Section 489.103?

A. persons who sell, service, or install heating or air conditioning units that have a capacity of less than 3

tons with a power cord

B. registered architects or engineers acting within the scope of their practice

C. persons performing small remodeling jobs with a contract price of less than $2,500

D. highway, street, road, bridge or railway contractors

Copyri

ght

Rob Este

ll

Page 2

6. According to Builder's Guide to Accounting, a complete cash budgeting plan ______________.

A. does not address loan payments

B. ignores tax liabilities

C. controls the purchase of materials

D. addresses the type of business of business organization used

7. Under the Florida Worker's Compensation Act, a contractor may recover ________________ from a

subcontractor who has elected exemption from Chapter 440 if the subcontractor's exemption is invalid and

has caused liability to the contractor for an employee of the subcontractor.

A. benefits paid and interest due

B. a minimum of $1,500 and interest

C. penalties up to 100% of their contract

D. a maximum of $2,500 per occurrence

8. According to the Builder's Guide to Accounting, to find the supplies ratio ________________.

A. divide average inventories of supplies by cost of supplies used

B. divide raw materials used by average inventories of raw materials

C. divide cost of supplies used by the average inventories of supplies

D. use the current market value ratio

9. According to Florida Contractors Manual, construction project schedules should have progress posted at

least _________________.

A. daily

B. weekly

C. biweekly

D. monthly

10. A fine of up _____________ to can be imposed on a contractor for proceeding on any job without

obtaining applicable local building permits.

A. $1,000

B. $3,000

C. $5,000

D. $10,000

11. An OSHA 300 safety log must be maintained by employers with at least _______employees.

A. 5

B. 7

C. 10

D. 11

Business & Finance Final Exam 2

Copyri

ght

Rob Este

ll

Page 3

12. OSHA 300, Log on Summary of Occupational Injuries and Illnesses, is used to record _____________.

A. accident investigations

B. all health claims

C. all incidents resulting in loss of consciousness

D. non-work restricting injuries

13. According to Florida Contractors Manual, which formula is correct?

A. Assets - Liabilities = Equity

B. Assets + Liabilities = Owner's Equity

C. Assets = Owner's Equity - Depreciation

D. Owner's Equity = Liabilities – Depreciation

14. Which of the following is a current asset?

A. accounts payable

B. accounts receivable

C. construction equipment

D. furniture

15. According to AIA documents, change orders ________________.

A. must be prepared by the architect

B. always result in an adjustment of costs

C. don't necessarily describe a change in work

D. always result in a delay of completion of the job

16. According to Florida Contractors Manual, which estimating method is NOT recommended for lump

sum contracts?

A. approximate estimated method

B. detailed survey method

C. square footage method

D. unit price method

17. When determining a project bid, which of the following expenses is considered an overhead expense?

A. costs of recruiting laborers for that job

B. materials needed for that job

C. purchases of small tools

D. rental of equipment to be used only for that job

Business & Finance Final Exam 2

Copyri

ght

Rob Este

ll

Page 4

18. What are the three C's of underwriting that the surety industry considers before a contractor can acquire

a bond?

A. character, cash and contracts

B. completion percentage, completed contracts and cash

C. cash, completion and contracts

D. capital, character and capacity

19. A typical purchase order should include all of the following EXCEPT ______________.

A. the billing and delivery address

B. a preprinted purchase order number

C. sales tax for purchase and for resale

D. an authorized signature

20. According to the Builder's Guide to Accounting, a definite plan for fixed assets should include all of the

following EXCEPT ________________.

A. records of maintenance cost

B. a determination if proposed equipment is useful for the job

C. a policy establishing depreciation rates

D. a study of lease vs. purchase options

21. You can't claim depreciation on any of the following except:

A. land

B. inventory

C. vehicles

D. intangible property

22. How is Florida sales tax reported and paid?

A. Reported on form DR-15-CS and paid on a monthly basis

B. Reported on form DR-15-CS and paid on a quarterly basis

C. Reported on form 941 and paid on a monthly basis

D. Reported on form 941 and paid on a quarterly basis

23. Expanding a business usually requires a great deal of capital to purchase new equipment, buildings or to

obtain long term financing. To qualify for expansion financing, financial institutes typically require that

you have been in business at least _____________, while ____________ is preferred.

A. 2 years; 4 years

B. 2 years; 5 years

C. 3 years; 5 years

D. 3 years; 6 years

Business & Finance Final Exam 2

Copyri

ght

Rob Este

ll

Page 5

24. Final payment to the Subcontractor shall be made when the Work is completed and the _____________

has issued a certificate of payment.

A. Owner

B. Contractor

C. Inspector

D. Architect

25. Regarding Worker's Compensation, a certificate of election to be exempt is valid for ___________

after the effective date stated thereon.

A. 1 year

B. 2 years

C. 3 years

D. 5 years

Business & Finance Final Exam 2

Copyri

ght

Rob Este

ll

Copyri

ght

Rob Este

ll

Page 5

24. Final payment to the Subcontractor shall be made when the Work is completed and the _____________

has issued a certificate of payment.

A. Owner

B. Contractor

C. Inspector

D. Architect

25. Regarding Worker's Compensation, a certificate of election to be exempt is valid for ___________

after the effective date stated thereon.

A. 1 year

B. 2 years

C. 3 years

D. 5 years

Business & Finance Final Exam 2

Copyri

ght

Rob Este

ll

Page 6

Q A Section/Page# Book

1. B Ch. 5, pg.5-53 Contractors Manual

Average Weekly Pay x 13 ÷ 26 = Weekly Benefit. $245 x 13 =

$3,185; $3,185 ÷ 26 = $122.50 (Closest Answer)

2. C Page 169, 170 BGA

3. D Ch. 5, pg. 5-52& 5-277 Contractors Manual

4. A Article 8 A.I.A.701

Page 2 A.I.A.201

5. C Ch. 2, 489.103(9) Contractors Manual

6. C Page 173, 174 BGA

7. A Ch. 6, 440.10(1)(d)1. Contractors Manual

8. C Page 121 BGA

9. B Ch. 10, pg. 10-63 Contractors Manual

10. C Ch. 2, pg. 2-24(15) Contractors Manual

11. D Ch. 7, pg. 7-9 Contractors Manual

12. C Ch. 7, pg. 7-19 Contractors Manual

13. A Ch. 3, pgs. 3-11, 3-12 Contractors Manual

Assets = Liabilities + Equity; therefore Assets - Liabilities =

Equity

14. B Page 327 or 252 BGA

15. A 7.2.1 A.I.A..201

16. C Ch. 10, pg. 10-12 Contractors Manual

17. C Page 142, 143 BGA

Answer C is the correct answer because the purchases of small

tools is an indirect expense (variable expense) not related to any

particular job but part of an overhead expense.

Answer A is wrong because costs of recruiting laborers for that

job is a direct cost

Answer B is wrong because materials needed for that job is a

direct cost

Answer D is wrong because rental of equipment to be used only

for that job is a direct cost

Business & Finance Final Exam 2

Answer Key

Business & Finance Final Exam 2

Copyri

ght

Rob Este

ll

Page 7

Q A Section/Page# Book

18. D Ch. 4, pg. 4-15 Contractors Manual

19. C Page 116, 117 BGA

(KEY WORD - "NOT for resale")

20. B Page 156 BGA

21. C Page 162 BGA

22. A Ch. 1, pg. 1-23 Contractors Manual

23. B Ch. 3, 3-72 Contractors Manual

24. D 11.3.1 A.I.A.401

25. B Ch. 6, 440.05(6) Contractors Manual

Business & Finance Final Exam 2