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COMMERCIAL CONTRACTOR PRACTICE
EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS
An employee earns $12.50 per hour. What is the gross pay of this non-
exempt employee who works 45 hours during a holiday week, and
receives 8 hours additional pay for the holiday?
A.$562.50
B.$662.50
C.$693.75
D.$743.75 Ans: C.$693.75
Which of the following statements about a sole proprietorship is TRUE?
A. The business, or any part of it, can be sold, altered, or exchanged at
will.
B. The business will survive the death of the owner.
C. It provides the owner with limited liability for debts and actions of the
business
D. The business is not subject to Federal income tax. Ans: A.The
business, or any part of it, can be sold, altered, or exchanged at will.
What is the name of the process when a facilitator meets with the major
participants in a project, prior to the commencement of the project, to
identify the shared goals of all participants?
A. Partnering
B. Arbitration
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C. Mediation
D. Claims resolution Ans: A.Partnering
How much is an employer who withheld employee Medicare and Social
Security taxes or $765 REQUIRED to send to the IRS?
A. $145
B. $620
C. $765
D. $1,530 Ans: D.$1530
Records of an employee's exposure to hazardous materials MUST be kept
a MINIMUM of how many years?
A. 3 years
B. 7 years
C. 15 years
D. 30 years Ans: D.30 years
What can be determined by summing the project activities into an overall
schedule?
A. The total resource demand for a project at any given time.
B.The total amount that the company will earn from the job.
C.The total insurance needs of the company.
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D.The total man-hours needed for all projects. Ans: A.The total resource
demand for a project at any given time.
What MUST be done with the taxes withheld by an employer between the
time that they are withheld and the time that they are sent to the IRS?
A. The taxes can be kept in the general company account.
B. The taxes must be kept in a savings account.
C. The taxes must be held in a separate account and not used for
anything else.
D. The taxes can be used to temporarily pay the company's expenses.
Ans: C.The taxes must be held in a separate account and not used for
anything else.
Costs that relate to construction but are not directly associated with labor
and materials for a specific project are considered to be which of the
following?
A. overhead burden
B. company overhead
C. project overhead
D. variable overhead Ans: C.project overhead
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What is the average collection period ratio for a firm that has $365,000 in
annual revenues, $6,600 in current receivables, and net income of
$32,000?
A. 4.8
B. 6.6
C. 11.4
D. 55.3 Ans: B.6.6
Which is an advantage of a Critical Path Method (CPM) schedule?
A. It is the easiest to interpret
B. It identifies the cash flow needs at any point in the project.
C. It most clearly shows all the activities needed to complete the project.
D. It identifies activities that must be completed before other activities
can occur. Ans: D.It identifies activities that must be completed before
other activities can occur.
An employee can request to receive advance earned income credit on
Form
A. w-2
B. w-3
C. w-4
D. w-5 Ans: D.W-5
What is a company's net worth equal to?
A. net income
COMMERCIAL CONTRACTOR PRACTICE
EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS
An employee earns $12.50 per hour. What is the gross pay of this non-
exempt employee who works 45 hours during a holiday week, and
receives 8 hours additional pay for the holiday?
A.$562.50
B.$662.50
C.$693.75
D.$743.75 Ans: C.$693.75
Which of the following statements about a sole proprietorship is TRUE?
A. The business, or any part of it, can be sold, altered, or exchanged at
will.
B. The business will survive the death of the owner.
C. It provides the owner with limited liability for debts and actions of the
business
D. The business is not subject to Federal income tax. Ans: A.The
business, or any part of it, can be sold, altered, or exchanged at will.
What is the name of the process when a facilitator meets with the major
participants in a project, prior to the commencement of the project, to
identify the shared goals of all participants?
A. Partnering
B. Arbitration
, Page | 2
C. Mediation
D. Claims resolution Ans: A.Partnering
How much is an employer who withheld employee Medicare and Social
Security taxes or $765 REQUIRED to send to the IRS?
A. $145
B. $620
C. $765
D. $1,530 Ans: D.$1530
Records of an employee's exposure to hazardous materials MUST be kept
a MINIMUM of how many years?
A. 3 years
B. 7 years
C. 15 years
D. 30 years Ans: D.30 years
What can be determined by summing the project activities into an overall
schedule?
A. The total resource demand for a project at any given time.
B.The total amount that the company will earn from the job.
C.The total insurance needs of the company.
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D.The total man-hours needed for all projects. Ans: A.The total resource
demand for a project at any given time.
What MUST be done with the taxes withheld by an employer between the
time that they are withheld and the time that they are sent to the IRS?
A. The taxes can be kept in the general company account.
B. The taxes must be kept in a savings account.
C. The taxes must be held in a separate account and not used for
anything else.
D. The taxes can be used to temporarily pay the company's expenses.
Ans: C.The taxes must be held in a separate account and not used for
anything else.
Costs that relate to construction but are not directly associated with labor
and materials for a specific project are considered to be which of the
following?
A. overhead burden
B. company overhead
C. project overhead
D. variable overhead Ans: C.project overhead
, Page | 4
What is the average collection period ratio for a firm that has $365,000 in
annual revenues, $6,600 in current receivables, and net income of
$32,000?
A. 4.8
B. 6.6
C. 11.4
D. 55.3 Ans: B.6.6
Which is an advantage of a Critical Path Method (CPM) schedule?
A. It is the easiest to interpret
B. It identifies the cash flow needs at any point in the project.
C. It most clearly shows all the activities needed to complete the project.
D. It identifies activities that must be completed before other activities
can occur. Ans: D.It identifies activities that must be completed before
other activities can occur.
An employee can request to receive advance earned income credit on
Form
A. w-2
B. w-3
C. w-4
D. w-5 Ans: D.W-5
What is a company's net worth equal to?
A. net income
