CSLB CH. 5 EXAM ACTUAL QUESTIONS AND ANSWERS A+ GRADE

CSLB CH. 5 EXAM ACTUAL QUESTIONS AND
ANSWERS 2026/2027 A+ GRADE.

1 year - correct answer-1.) Current liabilities on a balance sheet are debts that become due within:


Revenues and expenses over an extended period of time - correct answer-
2.) An income statement shows:


When the cash changes hands - correct answer-
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3.) In the cash system of accounting, a transaction is recorded or posted:
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Money due from customers who have purchased goods or services - correct answer-
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4.) Of the following which is the best description for accounts receivable?
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A budget should allow leeway for month to month variations - correct answer-
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5.) Which of the following is a correct statement about budgets?
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Use funds from a pre-established line of credit - correct answer-6.) If a contractor has temporary cash-
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flow problem, what is a good way to get through the crisis?
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Coverage and Cost - correct answer- X2 X2 X2 X2 X2




7.) Greg is looking to purchase an insurance policy. He is calling different companies to obtain differe
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n t quotes. What is the best way to choose among different companies?
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Net Profit or Loss - correct answer-8.) The bottom line of the P & L statement shows:
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They may form a corporation and obtain a corporate license - correct answer-
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9.) A licensed contractor wants to do construction projects with an unlicensed individual. Of the follow in
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g, which is a legal alternative?
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The Board of Equalization - correct answer-10.) To whom do you report and pay Use tax?
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