AZ STATUTES AND RULES
FLASHCARDS PT. 2 QUESTIONS AND
ANSWERS
1.vfWhichvfofvfthevffollowingvfconditionsvfindicatesvfthevfcompletionvfofvfavfpermittedvfstruct
ure?vf-vfanswer--
30vfdaysvfhavevfpassedvfsincevfthevffinalvfinspectionvfandvfwrittenvfacceptancevfofvfthevfproj
ect.
2.vfWhovfisvfresponsiblevfforvfthevfoverallvfconstructionvfofvfavfproject?vf-vfanswer--
Generalvfcontractor
3.vfAvfformalvfcomplaintvfwhichvfhasvfbeenvfconfirmedvfbyvfanvfagencyvfinspectorvfwillvfrema
invfonvfthevfcontractor'svfpublicvfrecordvfforvfhowvfmanyvfyears?vf-vfanswer--2
4.vfAvfprojectvfowner,vfinvfordervftovfensurevfthatvfavfcontractorvfwillvfbuildvfavfprojectvfaccordi
ngvftovfthevfspecifications,vfwillvfrequirevfavfcontractorvftovffurnish:vf-vfanswer--
Avfperformancevfbond
5.vfHowvfarevfworkersvfcompensationvfpremiumsvfpaid?vf-vfanswer--
100%vfbyvfthevfemployer
6.vfContractorsvfpayvfArizonavfstatevfsalesvftaxvftovfthe:vf-vfanswer--
Arizonavfdepartmentvfofvfrevenue
7.vfWhenvfavfbigvfbondvfisvfrequiredvfwithvfavfcontractorvfisvfbid,vfitvfisvfintendedvftovfguarante
evfthat:vf-vfanswer--
Thevfsuccessfulvfbiddervfwillvfentervfintovfavfcontractvfwithvfthevfownervfforvfthevfamountvfofvft
hevfbid.
8.vfAvfcomplaintvfhasvfbeenvffiledvfagainstvfanvfArizonavfcontractor.vfAftervfinvestigation,vfth
evfregistrarvfissuesvfavfcitationvfandvfthisvfisvfservedvfonvfthevfcontractor.vfHowvflongvfdoesvft
hevfcontractorvfhavevftovffilevfavfwrittenvfanswervftovfthevfcomplaintvfwithvfthevfregistrar?vf-
vfanswer--10vfdays
9.vfThevfmaximumvfamountvfthatvfcanvfbevfassessedvfbienniallyvfagainstvfthevfcontractorvffo
rvfthevfrequiredvfcontributionvftovfthevfresidentialvfcontractorsvfrecoveryvffundvfis:vf-
vfanswer--600vfdollars
10.vfGiven:vfwhenvfthevfregistrarvfofvfcontractorsvfissuesvfavfcitationvftovfavflicensee,vfthevfcit
ationvfisvfsentvfbyvfcertifiedvfmailvftovfthevflicenseevfatvfthevflatestvfaddressvfofvfrecord.vfWhe
nvfisvfthevfservicevfofvfthevfcitationvfcomplete?vf-vfanswer--
Atvfthevftimevfofvfpersonalvfservicevforvffivevfdaysvfaftervfdepositedvfinvfthevfmail
,11.vfWhichvftypevfofvfconstructionvfcontractvfbindsvfthevfcontractorvftovfdovfavfstipulatedvfjobv
finvfreturnvfforvfavffixedvfsumvfofvfmoney?vf-vfanswer--Lumpvfsumvfcontract
12.vfWhatvfisvfthevfMAXIMUMvfamountvfwhichvfmayvfbevfrecoveredvffromvfthevfcontractorsvf
recoveryvffundvfforvfanyvfonevfresidentialvfcontractorsvflicense?vf-vfanswer--$200,000.00
13.vfWhatvfformvfmustvfanvfemployervfhavevfnewvfemployeesvfcompletevfinvfordervftovfverify
vfemploymentvfeligibilityvfundervfthevfimmigrationvfReformvfandvfcontrolvfact?vf-vfanswer--I-
9
14.vfContractorsvfmayvfrequestvfthevfregistrarvftovfinactivatevftheirvfcurrentvflicensevfforvfavfp
eriodvfnotvftovfexceedvf:vf-vfanswer--5vfyears
15.vfYouvfarevfavfcontractorvfbeginningvfavfprojectvfonvfMayvf1,vfavfpre-
lienvfshouldvfbevfsentvfbefore?vf-vfanswer--Mayvf21st
16.vfWhenvfclearingvfavf1vfacrevfsitevfforvfbuildingvfavfhome,vfwhatvfagencyvfdovfyouvfdealvfwit
h?vf-vfanswer--Environmentalvfprotectionvfagency
17.vfWhatvfformvfisvfusedvftovfreportvfandvfpayvfquarterlyvfunemploymentvftaxvftovfthevfArizo
navfDepartmentvfofvfeconomicvfsecurity?vf-vfanswer--
Unemploymentvftaxvfandvfwagevfreportvf(UC-018)
18.vfAvfpersonvfmayvfactvfasvfavfqualifyingvfpartyvfforvftwovfcompaniesvfatvfthevfsamevftimevfifv
fonevfofvfthevfcompaniesvfisvfavfsubsidiaryvfofvfthevfothervfcompany,vfifvftherevfisvfavfminimum
vfcommonvfownershipvfof:vf-vfanswer--25vfpercent
19.vfWhichvfofvfthevffollowingvfisvfconsideredvfavfformvfofvfbusinessvforganization?vf-
vfanswer--Solevfproprietorship
20.vfEachvfyearvfthevfemployervfmustvffilevfthevfannualvfreportvffromvfA1-
RvfandvfincludevfallvfwagevfandvfwithholdingvfstatementsvfwithvfthevfStatevfofvfArizonavfthevf
duevfdatevfof:vf-vfanswer--Februaryvf28th
21.vfThevfairvfqualityvfdivisionvfthatvfadministersvfthevfairvfqualityvfpermitsvfprogramvfis?vf-
vfanswer--ADEQ
22.vfIfvfnewvfinformationvfbecomesvfavailablevfaboutvfthevfhazardousvfchemical,vfwithinvfw
hatvftimevfperiodvfmustvflabelsvfbevfrevised?vf-vfanswer--6vfmonths
23.vfWhichvfofvfthevffollowingvfconditionsvfindicatesvfthevfcompletionvfofvfavfpermittedvfstruc
ture?vf-vfanswer--
60vfconsecutivevfdaysvfhavevfpassedvfsincevfthevflastvfworkvfwasvfperformed
24.vfWhenvfisvfthevfduevfdatevfofvfanvfArizonavfsalesvftaxvfreturn?vf-vfanswer--
20thvfdayvfofvfthevffollowingvfmonth
25.vfTransactionsvfrecordedvfinvfthevfcashvfreceiptsvfjournal'svfarevfsummarizedvfandvfpost
edvftovfthe:vf-vfanswer--Generalvfledger
, 26.vfWhichvfofvfthevffollowingvfisvfanvfadvantagevfofvfthevfsolevfownershipvfformvfofvfbusines
s?vf-vfanswer--Canvfbevfsoldvforvfalteredvfatvfwill
27.vfGiving:vfAvfcontractorvfhasvfobtainvfavfcontractorsvflicensevfinvfthevfnamevfofvfPatvfBrow
n.vfUndervfwhatvfnamevfcanvfhisvfcontractingvfbusinessvfbevfconducted?vf-vfanswer--
PatvfBrown
28.vfWhovfisvfresponsiblevfforvfcertifyingvfthevfamountvfofvfworkvfcompletedvfonvfavfprojectvft
ovfthevfowner?vf-vfanswer--Architect/engineer
29.vfAvfcompany'svfbalancevfsheetvfshowsvfassetsvfofvf$20,000vfandvfownersvfequityvfofvf$1
2,000,vfthevfcompany'svfliabilitiesvfare:vf-vfanswer--$8,000
30.vfWhichvfonevfofvfthevffollowingvftypesvfofvffinancialvfstatementsvfexaminesvfthevfcashvfg
eneratingvfandvfdistributionvfactivitiesvfofvfavfconstructionvfcompany?vf-vfanswer--
Statementvfofvfcashvfflow
31.vfInvfArizonavfavfcontractorvfmustvfreportvfavfchangevfofvfbusinessvfaddressvftovfthevfregis
trarvfofvfcontractorsvfwithinvfhowvfmanyvfdays?vf-vfanswer--30
32.vfAvfpersonvfwantsvftovffilevfavfnoticevfandvfclaimvfofvfMechanic's,vfMaterialman'svforvfProf
essionalvfServicesvfLien,vfformvfML-
10.vfWherevfwouldvfthisvfpersonvffindvfthevfinformationvfneededvftovfcompletevfthevflegalvfde
scriptionvfsection?vf-vfanswer--thevftitlevfcompany
33.vfWhatvfdocumentvfcontainsvfthevfactualvfphysicalvfdescriptionsvfofvfthevfprojectvftovfbevfc
onstructed?vf-vfanswer--Drawings
34.vfWhatvfarevfperiodicvfpaymentsvforvfcostvfreimbursement,vfmadevfbyvfthevfownervftovfavf
contractor,vfduringvfavflongvfconstructionvfperiodvfcalled?vf-vfanswer--Progressvfpayments
35.vfWhenvfmayvfavfcontractorvfreapplyvfforvfavfcontractorsvflicensevfaftervfrevocation?vf-
vfanswer--12vfmonths
36.vfAvfcontractingvfcompanyvfisvfevaluatingvfitsvfabilityvftovfcompletevfavfprojectvfinvfavftimel
yvfandvfefficientvfmanner.vfBeforevfbiddingvfonvfthevfprojectvfthevfcompanyvfshouldvfconside
rvfallvfofvfthevffollowingvffactorsvfEXCEPT:vf-vfanswer--
Thevfappropriatevfaccountingvfbasisvfandvfmethods
37.vfWhenvfreservingvfavftradevfname,vfavfcorporatevfnamevfmayvfbevfreservedvfpriorvftovfinc
orporationvfforvfhowvfmanyvfdays?vf-vfanswer--120vfdays
38.vfAvfgeneralvfpartnershipvfisvfmadevfupvfofvf"A"-vf60%,vfandvf"B"vf-
vf40%.vfThevfpartnershipvfisvfcommittedvftovf$100,000.00vfdebt.vf"A"vfdies.vfTherevfisvfnovfpa
rtnershipvfaccountvftovfrecovervfhisvfdebt.vfHowvfwillvfthisvfdebtvfbevfhandled?vf-
vfanswer--"B"vfisvfliablevfforvfthevfentirevf$100,000.00
39.vfAvfcontractorvfhasvfavfcontractvfwithvfanvfowner,vfandvfavfnoticevfofvfcompletionvf(formvf
ML-9)vfwasvfnotvffiled.vfHowvflongvfdoesvfthisvfcontractorvfhavevftovffilevfavflien?vf-vfanswer--
120vfdaysvffromvfthevfcompletionvfofvfthevfstructure
FLASHCARDS PT. 2 QUESTIONS AND
ANSWERS
1.vfWhichvfofvfthevffollowingvfconditionsvfindicatesvfthevfcompletionvfofvfavfpermittedvfstruct
ure?vf-vfanswer--
30vfdaysvfhavevfpassedvfsincevfthevffinalvfinspectionvfandvfwrittenvfacceptancevfofvfthevfproj
ect.
2.vfWhovfisvfresponsiblevfforvfthevfoverallvfconstructionvfofvfavfproject?vf-vfanswer--
Generalvfcontractor
3.vfAvfformalvfcomplaintvfwhichvfhasvfbeenvfconfirmedvfbyvfanvfagencyvfinspectorvfwillvfrema
invfonvfthevfcontractor'svfpublicvfrecordvfforvfhowvfmanyvfyears?vf-vfanswer--2
4.vfAvfprojectvfowner,vfinvfordervftovfensurevfthatvfavfcontractorvfwillvfbuildvfavfprojectvfaccordi
ngvftovfthevfspecifications,vfwillvfrequirevfavfcontractorvftovffurnish:vf-vfanswer--
Avfperformancevfbond
5.vfHowvfarevfworkersvfcompensationvfpremiumsvfpaid?vf-vfanswer--
100%vfbyvfthevfemployer
6.vfContractorsvfpayvfArizonavfstatevfsalesvftaxvftovfthe:vf-vfanswer--
Arizonavfdepartmentvfofvfrevenue
7.vfWhenvfavfbigvfbondvfisvfrequiredvfwithvfavfcontractorvfisvfbid,vfitvfisvfintendedvftovfguarante
evfthat:vf-vfanswer--
Thevfsuccessfulvfbiddervfwillvfentervfintovfavfcontractvfwithvfthevfownervfforvfthevfamountvfofvft
hevfbid.
8.vfAvfcomplaintvfhasvfbeenvffiledvfagainstvfanvfArizonavfcontractor.vfAftervfinvestigation,vfth
evfregistrarvfissuesvfavfcitationvfandvfthisvfisvfservedvfonvfthevfcontractor.vfHowvflongvfdoesvft
hevfcontractorvfhavevftovffilevfavfwrittenvfanswervftovfthevfcomplaintvfwithvfthevfregistrar?vf-
vfanswer--10vfdays
9.vfThevfmaximumvfamountvfthatvfcanvfbevfassessedvfbienniallyvfagainstvfthevfcontractorvffo
rvfthevfrequiredvfcontributionvftovfthevfresidentialvfcontractorsvfrecoveryvffundvfis:vf-
vfanswer--600vfdollars
10.vfGiven:vfwhenvfthevfregistrarvfofvfcontractorsvfissuesvfavfcitationvftovfavflicensee,vfthevfcit
ationvfisvfsentvfbyvfcertifiedvfmailvftovfthevflicenseevfatvfthevflatestvfaddressvfofvfrecord.vfWhe
nvfisvfthevfservicevfofvfthevfcitationvfcomplete?vf-vfanswer--
Atvfthevftimevfofvfpersonalvfservicevforvffivevfdaysvfaftervfdepositedvfinvfthevfmail
,11.vfWhichvftypevfofvfconstructionvfcontractvfbindsvfthevfcontractorvftovfdovfavfstipulatedvfjobv
finvfreturnvfforvfavffixedvfsumvfofvfmoney?vf-vfanswer--Lumpvfsumvfcontract
12.vfWhatvfisvfthevfMAXIMUMvfamountvfwhichvfmayvfbevfrecoveredvffromvfthevfcontractorsvf
recoveryvffundvfforvfanyvfonevfresidentialvfcontractorsvflicense?vf-vfanswer--$200,000.00
13.vfWhatvfformvfmustvfanvfemployervfhavevfnewvfemployeesvfcompletevfinvfordervftovfverify
vfemploymentvfeligibilityvfundervfthevfimmigrationvfReformvfandvfcontrolvfact?vf-vfanswer--I-
9
14.vfContractorsvfmayvfrequestvfthevfregistrarvftovfinactivatevftheirvfcurrentvflicensevfforvfavfp
eriodvfnotvftovfexceedvf:vf-vfanswer--5vfyears
15.vfYouvfarevfavfcontractorvfbeginningvfavfprojectvfonvfMayvf1,vfavfpre-
lienvfshouldvfbevfsentvfbefore?vf-vfanswer--Mayvf21st
16.vfWhenvfclearingvfavf1vfacrevfsitevfforvfbuildingvfavfhome,vfwhatvfagencyvfdovfyouvfdealvfwit
h?vf-vfanswer--Environmentalvfprotectionvfagency
17.vfWhatvfformvfisvfusedvftovfreportvfandvfpayvfquarterlyvfunemploymentvftaxvftovfthevfArizo
navfDepartmentvfofvfeconomicvfsecurity?vf-vfanswer--
Unemploymentvftaxvfandvfwagevfreportvf(UC-018)
18.vfAvfpersonvfmayvfactvfasvfavfqualifyingvfpartyvfforvftwovfcompaniesvfatvfthevfsamevftimevfifv
fonevfofvfthevfcompaniesvfisvfavfsubsidiaryvfofvfthevfothervfcompany,vfifvftherevfisvfavfminimum
vfcommonvfownershipvfof:vf-vfanswer--25vfpercent
19.vfWhichvfofvfthevffollowingvfisvfconsideredvfavfformvfofvfbusinessvforganization?vf-
vfanswer--Solevfproprietorship
20.vfEachvfyearvfthevfemployervfmustvffilevfthevfannualvfreportvffromvfA1-
RvfandvfincludevfallvfwagevfandvfwithholdingvfstatementsvfwithvfthevfStatevfofvfArizonavfthevf
duevfdatevfof:vf-vfanswer--Februaryvf28th
21.vfThevfairvfqualityvfdivisionvfthatvfadministersvfthevfairvfqualityvfpermitsvfprogramvfis?vf-
vfanswer--ADEQ
22.vfIfvfnewvfinformationvfbecomesvfavailablevfaboutvfthevfhazardousvfchemical,vfwithinvfw
hatvftimevfperiodvfmustvflabelsvfbevfrevised?vf-vfanswer--6vfmonths
23.vfWhichvfofvfthevffollowingvfconditionsvfindicatesvfthevfcompletionvfofvfavfpermittedvfstruc
ture?vf-vfanswer--
60vfconsecutivevfdaysvfhavevfpassedvfsincevfthevflastvfworkvfwasvfperformed
24.vfWhenvfisvfthevfduevfdatevfofvfanvfArizonavfsalesvftaxvfreturn?vf-vfanswer--
20thvfdayvfofvfthevffollowingvfmonth
25.vfTransactionsvfrecordedvfinvfthevfcashvfreceiptsvfjournal'svfarevfsummarizedvfandvfpost
edvftovfthe:vf-vfanswer--Generalvfledger
, 26.vfWhichvfofvfthevffollowingvfisvfanvfadvantagevfofvfthevfsolevfownershipvfformvfofvfbusines
s?vf-vfanswer--Canvfbevfsoldvforvfalteredvfatvfwill
27.vfGiving:vfAvfcontractorvfhasvfobtainvfavfcontractorsvflicensevfinvfthevfnamevfofvfPatvfBrow
n.vfUndervfwhatvfnamevfcanvfhisvfcontractingvfbusinessvfbevfconducted?vf-vfanswer--
PatvfBrown
28.vfWhovfisvfresponsiblevfforvfcertifyingvfthevfamountvfofvfworkvfcompletedvfonvfavfprojectvft
ovfthevfowner?vf-vfanswer--Architect/engineer
29.vfAvfcompany'svfbalancevfsheetvfshowsvfassetsvfofvf$20,000vfandvfownersvfequityvfofvf$1
2,000,vfthevfcompany'svfliabilitiesvfare:vf-vfanswer--$8,000
30.vfWhichvfonevfofvfthevffollowingvftypesvfofvffinancialvfstatementsvfexaminesvfthevfcashvfg
eneratingvfandvfdistributionvfactivitiesvfofvfavfconstructionvfcompany?vf-vfanswer--
Statementvfofvfcashvfflow
31.vfInvfArizonavfavfcontractorvfmustvfreportvfavfchangevfofvfbusinessvfaddressvftovfthevfregis
trarvfofvfcontractorsvfwithinvfhowvfmanyvfdays?vf-vfanswer--30
32.vfAvfpersonvfwantsvftovffilevfavfnoticevfandvfclaimvfofvfMechanic's,vfMaterialman'svforvfProf
essionalvfServicesvfLien,vfformvfML-
10.vfWherevfwouldvfthisvfpersonvffindvfthevfinformationvfneededvftovfcompletevfthevflegalvfde
scriptionvfsection?vf-vfanswer--thevftitlevfcompany
33.vfWhatvfdocumentvfcontainsvfthevfactualvfphysicalvfdescriptionsvfofvfthevfprojectvftovfbevfc
onstructed?vf-vfanswer--Drawings
34.vfWhatvfarevfperiodicvfpaymentsvforvfcostvfreimbursement,vfmadevfbyvfthevfownervftovfavf
contractor,vfduringvfavflongvfconstructionvfperiodvfcalled?vf-vfanswer--Progressvfpayments
35.vfWhenvfmayvfavfcontractorvfreapplyvfforvfavfcontractorsvflicensevfaftervfrevocation?vf-
vfanswer--12vfmonths
36.vfAvfcontractingvfcompanyvfisvfevaluatingvfitsvfabilityvftovfcompletevfavfprojectvfinvfavftimel
yvfandvfefficientvfmanner.vfBeforevfbiddingvfonvfthevfprojectvfthevfcompanyvfshouldvfconside
rvfallvfofvfthevffollowingvffactorsvfEXCEPT:vf-vfanswer--
Thevfappropriatevfaccountingvfbasisvfandvfmethods
37.vfWhenvfreservingvfavftradevfname,vfavfcorporatevfnamevfmayvfbevfreservedvfpriorvftovfinc
orporationvfforvfhowvfmanyvfdays?vf-vfanswer--120vfdays
38.vfAvfgeneralvfpartnershipvfisvfmadevfupvfofvf"A"-vf60%,vfandvf"B"vf-
vf40%.vfThevfpartnershipvfisvfcommittedvftovf$100,000.00vfdebt.vf"A"vfdies.vfTherevfisvfnovfpa
rtnershipvfaccountvftovfrecovervfhisvfdebt.vfHowvfwillvfthisvfdebtvfbevfhandled?vf-
vfanswer--"B"vfisvfliablevfforvfthevfentirevf$100,000.00
39.vfAvfcontractorvfhasvfavfcontractvfwithvfanvfowner,vfandvfavfnoticevfofvfcompletionvf(formvf
ML-9)vfwasvfnotvffiled.vfHowvflongvfdoesvfthisvfcontractorvfhavevftovffilevfavflien?vf-vfanswer--
120vfdaysvffromvfthevfcompletionvfofvfthevfstructure
