CSLB Exam Law and Business 2026-2027 Questions with
100% Correct Answers
How much time doesRa contractor have to renew his/her license after the expiration date without retaki
ng the license exam? - correct answer-
The contractor isRnotRrequired to retake the exam if the license is renewed within 5 years, from the expir
ation date
If the contractor unlawfully removes asbestos he/she may be fined.... - correct answer-
minimum of $1,000 and or have his/her license revoked or suspended
when you collect sales tax from your customers goods, to which agency do you report and pay sales tax
collected? - correct answer-sales tax is a state tax and is payable to the state board of equalization.
Who do you pay state income tax to - correct answer-
state income taxes are payable to the franchise taxRboard
Who collects federal tax - correct answer-IRS only collects federal taxes
How long is the contractor liable for patent or visibleRdefects - correct answer-
patent is a visible defect for which the contractor is liable for up to 4 years
how long is the contractor liable for latent or structural defects - correct answer-
latent is an invisible or structural defect for which the contractor isRliable for up to 10 years
account receivable contains? - correct answer-
retention, which is usually 10%, it is withheld by the owner from the contract to ensure that the job is d
one properly and subcontractors are paid. the retention is recorded in accounts receivable
which is considered a fixed cost to a contractor
a. electricity cost
b.part time wages
100% Correct Answers
How much time doesRa contractor have to renew his/her license after the expiration date without retaki
ng the license exam? - correct answer-
The contractor isRnotRrequired to retake the exam if the license is renewed within 5 years, from the expir
ation date
If the contractor unlawfully removes asbestos he/she may be fined.... - correct answer-
minimum of $1,000 and or have his/her license revoked or suspended
when you collect sales tax from your customers goods, to which agency do you report and pay sales tax
collected? - correct answer-sales tax is a state tax and is payable to the state board of equalization.
Who do you pay state income tax to - correct answer-
state income taxes are payable to the franchise taxRboard
Who collects federal tax - correct answer-IRS only collects federal taxes
How long is the contractor liable for patent or visibleRdefects - correct answer-
patent is a visible defect for which the contractor is liable for up to 4 years
how long is the contractor liable for latent or structural defects - correct answer-
latent is an invisible or structural defect for which the contractor isRliable for up to 10 years
account receivable contains? - correct answer-
retention, which is usually 10%, it is withheld by the owner from the contract to ensure that the job is d
one properly and subcontractors are paid. the retention is recorded in accounts receivable
which is considered a fixed cost to a contractor
a. electricity cost
b.part time wages
