Florida Contractor
License Business and
Finance Exam
Questions And Correct
Answers (Verified
Answers) Plus
Rationales 2025/2026
Q&A | Instant
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1. What type of accounting records income when earned
and expenses when incurred?
A. Cash basis
B. Accrual basis
,C. Hybrid basis
D. Modified cash
Accrual accounting reflects true financial position regardless
of cash flow timing.
2. What does “working capital” equal?
A. Total assets – liabilities
B. Fixed assets – liabilities
C. Current assets – current liabilities
D. Revenue – expenses
Working capital measures short-term financial health.
3. A “lien waiver” is used to:
A. Secure payment
B. Delay payment
C. Release a claim against property
D. Increase contract price
Lien waivers protect owners from future claims.
4. OSHA primarily regulates:
A. Taxes
B. Contracts
C. Workplace safety
D. Insurance
OSHA ensures safe working conditions.
, 5. Break-even point is when:
A. Profit is maximized
B. Revenue exceeds costs
C. Revenue equals total costs
D. Expenses are minimized
No profit or loss occurs at break-even.
6. What is a “change order”?
A. Contract cancellation
B. Payment delay
C. Modification to original contract
D. Final inspection
Change orders adjust scope, price, or timeline.
7. The primary purpose of bonding is to:
A. Increase profits
B. Avoid taxes
C. Protect the project owner
D. Reduce labor costs
Bonds guarantee performance and payment.
8. A balance sheet shows:
License Business and
Finance Exam
Questions And Correct
Answers (Verified
Answers) Plus
Rationales 2025/2026
Q&A | Instant
Download Pdf
1. What type of accounting records income when earned
and expenses when incurred?
A. Cash basis
B. Accrual basis
,C. Hybrid basis
D. Modified cash
Accrual accounting reflects true financial position regardless
of cash flow timing.
2. What does “working capital” equal?
A. Total assets – liabilities
B. Fixed assets – liabilities
C. Current assets – current liabilities
D. Revenue – expenses
Working capital measures short-term financial health.
3. A “lien waiver” is used to:
A. Secure payment
B. Delay payment
C. Release a claim against property
D. Increase contract price
Lien waivers protect owners from future claims.
4. OSHA primarily regulates:
A. Taxes
B. Contracts
C. Workplace safety
D. Insurance
OSHA ensures safe working conditions.
, 5. Break-even point is when:
A. Profit is maximized
B. Revenue exceeds costs
C. Revenue equals total costs
D. Expenses are minimized
No profit or loss occurs at break-even.
6. What is a “change order”?
A. Contract cancellation
B. Payment delay
C. Modification to original contract
D. Final inspection
Change orders adjust scope, price, or timeline.
7. The primary purpose of bonding is to:
A. Increase profits
B. Avoid taxes
C. Protect the project owner
D. Reduce labor costs
Bonds guarantee performance and payment.
8. A balance sheet shows:
