CSLB Law & Business 2 Exam Questions With Accurate
Answers.
Overhead includes ___________. - accurate answers-Fixed cost
The result of subtracting liabilities from assets is known as: - accurate
answers-Net worth
Net worth is also known as owner's or stockholders' equity.
Although employers report social security (FICA) tax to the IRS, what are the
appropriate shares paid by the employee and employer? - accurate answers-
50% employer and 50% employee
When collecting sales tax from a customer for goods, to which agency is the
sales tax reported and paid? - accurate answers-California Department of Tax
and Fee Administration
Sales tax is a State tax and is payable to the California Department of Tax and
Fee Administration (CDTFA), formerly call the State Board of Equalization
(BOE). State income taxes are payable to the Franchise Tax Board. The IRS
only collects Federal taxes.
Which of the following is an example of an indirect cost? - accurate answers-
Marketing is an overhead cost. Marketing costs cannot be traced to a specific
project.
Depreciation is: - accurate answers-The decrease in value of a fixed asset due
to wear and tear, passage of time, or obsolescence
Only fixed assets can be depreciated. Therefore, the depreciation affects fixed
assets and not current assets or liabilities.
What are the fixed costs in the construction business? - accurate answers-
Expenses such as rent, manager's salary, etc.
, Fixed costs are those costs that have a fixed amount paid monthly. Rental
expense is usually a fixed amount paid monthly, therefore it is a fixed cost. The
cost of a company party can vary and therefore it is a variable cost.
Which of the following items is listed as a current asset on a balance sheet? -
accurate answers-Accounts receivable
What is the purpose of the IRS publication, Circular E? - accurate answers-An
employer's Tax Guide that has instructions on how to calculate withholding
tax and depositing employee's taxes.
If a contractor wanted to show funding to a financial institution, what would
be the LEAST applicable thing to show? - accurate answers-Vehicle
depreciation
A company's profits are calculated by: - accurate answers-Subtracting
expenses from revenues
Which of the following costs do NOT contribute to the direct labor burden? -
accurate answers-Company use of personal vehicles
Direct labor burden refers to: - accurate answers-Payroll costs for labor, such
as taxes and insurance
Do not confuse "direct labor" with "direct labor burden." Direct labor is the
actual cost for labor such as $20/hour. Direct labor burden includes all other
costs associated with keeping employees. Direct labor burden includes costs
such as unemployment taxes, workers' compensation insurance, etc.
Which of the following statements best describes the difference between the
balance sheet and income statement? - accurate answers-The balance sheet
shows net worth at a particular point in time, while the income statement
shows profit earned over a period of time.
Where would depreciation appear on the Balance Sheet? - accurate answers-
Fixed asset section
Only fixed assets can be depreciated.
Answers.
Overhead includes ___________. - accurate answers-Fixed cost
The result of subtracting liabilities from assets is known as: - accurate
answers-Net worth
Net worth is also known as owner's or stockholders' equity.
Although employers report social security (FICA) tax to the IRS, what are the
appropriate shares paid by the employee and employer? - accurate answers-
50% employer and 50% employee
When collecting sales tax from a customer for goods, to which agency is the
sales tax reported and paid? - accurate answers-California Department of Tax
and Fee Administration
Sales tax is a State tax and is payable to the California Department of Tax and
Fee Administration (CDTFA), formerly call the State Board of Equalization
(BOE). State income taxes are payable to the Franchise Tax Board. The IRS
only collects Federal taxes.
Which of the following is an example of an indirect cost? - accurate answers-
Marketing is an overhead cost. Marketing costs cannot be traced to a specific
project.
Depreciation is: - accurate answers-The decrease in value of a fixed asset due
to wear and tear, passage of time, or obsolescence
Only fixed assets can be depreciated. Therefore, the depreciation affects fixed
assets and not current assets or liabilities.
What are the fixed costs in the construction business? - accurate answers-
Expenses such as rent, manager's salary, etc.
, Fixed costs are those costs that have a fixed amount paid monthly. Rental
expense is usually a fixed amount paid monthly, therefore it is a fixed cost. The
cost of a company party can vary and therefore it is a variable cost.
Which of the following items is listed as a current asset on a balance sheet? -
accurate answers-Accounts receivable
What is the purpose of the IRS publication, Circular E? - accurate answers-An
employer's Tax Guide that has instructions on how to calculate withholding
tax and depositing employee's taxes.
If a contractor wanted to show funding to a financial institution, what would
be the LEAST applicable thing to show? - accurate answers-Vehicle
depreciation
A company's profits are calculated by: - accurate answers-Subtracting
expenses from revenues
Which of the following costs do NOT contribute to the direct labor burden? -
accurate answers-Company use of personal vehicles
Direct labor burden refers to: - accurate answers-Payroll costs for labor, such
as taxes and insurance
Do not confuse "direct labor" with "direct labor burden." Direct labor is the
actual cost for labor such as $20/hour. Direct labor burden includes all other
costs associated with keeping employees. Direct labor burden includes costs
such as unemployment taxes, workers' compensation insurance, etc.
Which of the following statements best describes the difference between the
balance sheet and income statement? - accurate answers-The balance sheet
shows net worth at a particular point in time, while the income statement
shows profit earned over a period of time.
Where would depreciation appear on the Balance Sheet? - accurate answers-
Fixed asset section
Only fixed assets can be depreciated.
