CSLB PRACTICE TEST 2026 QUESTIONS WITH 100%
CORRECT ANSWERS
The costs of running your business, including office expenses, etc., is called:
a. Direct Costs
b. Overhead
c. A liability
d. Accrual - correct answer-b. Overhead
Which government agency collects State Unemployment Tax?
a. Employment Development Department
b. County Unemployment Office
c. Franchise Tax Board
d. Internal Revenue Service - correct answer-a. Employment Development Department
Who does not need a California Contractor's State License?
a. Someone who repairs or maintains an air-conditioning unit or heat-pump unit.
b. Someone who installs mobile-homes
c. Someone who digs wells on the property of others
d. Sale or installation of finished products that do not become a fixed part of the structure -
correct answer-
d. Sale or installation of finished products that do not become a fixed part of the structure
Which of the following is not part of a Home-Improvement Contract?
a. Mechanic's Lien Warning
, b. Notice of Cancellation
c. Twenty-Day Preliminary Notice
d. All of the above. - correct answer-c. Twenty-Day Preliminary Notice
Prime Contractor must pay subcontractor when?
a. 10-daysRafter Prime-contractor received payment
b. When Prime-contractor receives withheld retention monies
c. 30-days after completion
d. As soon as subcontractor completes the work - correct answer-a. 10-days after Prime-
contractor received payment
The Contractor's Surety Bond is necessary for most contractors to obtain their license. This bond is in th
e amount of:
a. $2,500
b. $7,000
c. $15,000
d. $25,000 - correct answer-c. $15,000
How long with the CSLB hold a contractor responsible for observable defects?
a. 5-years
b. 4-years
c. 3-years
d. 2-years - correct answer-b. 4-years
In which of the following circumstances must a licensed contractor provide their license number?
CORRECT ANSWERS
The costs of running your business, including office expenses, etc., is called:
a. Direct Costs
b. Overhead
c. A liability
d. Accrual - correct answer-b. Overhead
Which government agency collects State Unemployment Tax?
a. Employment Development Department
b. County Unemployment Office
c. Franchise Tax Board
d. Internal Revenue Service - correct answer-a. Employment Development Department
Who does not need a California Contractor's State License?
a. Someone who repairs or maintains an air-conditioning unit or heat-pump unit.
b. Someone who installs mobile-homes
c. Someone who digs wells on the property of others
d. Sale or installation of finished products that do not become a fixed part of the structure -
correct answer-
d. Sale or installation of finished products that do not become a fixed part of the structure
Which of the following is not part of a Home-Improvement Contract?
a. Mechanic's Lien Warning
, b. Notice of Cancellation
c. Twenty-Day Preliminary Notice
d. All of the above. - correct answer-c. Twenty-Day Preliminary Notice
Prime Contractor must pay subcontractor when?
a. 10-daysRafter Prime-contractor received payment
b. When Prime-contractor receives withheld retention monies
c. 30-days after completion
d. As soon as subcontractor completes the work - correct answer-a. 10-days after Prime-
contractor received payment
The Contractor's Surety Bond is necessary for most contractors to obtain their license. This bond is in th
e amount of:
a. $2,500
b. $7,000
c. $15,000
d. $25,000 - correct answer-c. $15,000
How long with the CSLB hold a contractor responsible for observable defects?
a. 5-years
b. 4-years
c. 3-years
d. 2-years - correct answer-b. 4-years
In which of the following circumstances must a licensed contractor provide their license number?
