NAS 2

Question 1

1. The method recognizes income when the employer has done the work but has not received the income.

A. Accrual
B. Appreciation
C. Deprecation
D. Cash

Answer 1

1. A 13-7

Question 2

2. A bundles all cost factors for entire task.

A. Lump sum
B. Cost plus
C. Percent completion method
D. Unit price method

Answer 2

2. D 6-7

Question 3

3. requires paying prevailing wages in federally-financed projects.

A. Service Contract Act
B. Walsh-Healey Act
C. Wage Garnishment Law
D. Davis-Bacon Act

Answer 3

3. D 10-7

Question 4

4. absolves the indemnified party from any payment for losses and damages incurred by a third party.

A. Indemnification
B. Delays and extensions of time
C. Schedule acceleration
D. Force majeure

Answer 4

4. A 7-4

Question 5

5. An Emergency Action Plan should include .

A. Student’s name
B. Employer’s name
C. Administrator’s name
D. Next of kin

Answer 5

5. C 11-3

Question 6

6. Safety data sheets (SDS) are a requirement of OSHA’s Hazard Communication Standard (HCS) and the purpose of HCS is to in the workplace.

A. Provide chemical product information
B. Ensure chemical safety
C. Provide chemical usage information
D. Evaluate different chemicals to use

Answer 6

6. B 11-6

Question 7

7. Having adequate technology strengths can NOT help an organization with .

A. Estimating
B. Purchasing
C. Scheduling
D. Vacationing

Answer 7

7. D 4-2

Question 8

8. is an exclusion to an advantage of a sole proprietor.

A. Limited personal responsibility
B. Low startup costs
C. Ownership of profits
D. Decision making freedom

Answer 8

8. A 2-2

Question 9

9. A bond guarantees that the contractor has paid the subcontractor.

A. Bid
B. Performance
C. Payment
D. Maintenance

Answer 9

9. C 3-7

Question 10

10. determine the type of materials or methods used.

A. Specifications
B. Building codes
C. References
D. UL

Answer 10

10. A 6-2

Question 11

11. pays a worker when he or she is laid off.

A. Worker’s compensation
B. Unemployment
C. COBRA
D. HIPAA

Answer 11

11. B 3-5

Question 12

12. is relatively unimportant when naming a business.

A. Impression of firm
B. Trademark
C. Service
D. Location

Answer 12

12. D 2-6

Question 13

13. Technical specifications generally organized by MasterFormat classification.

A. AIA
B. EIE
C. EEE
D. CSI

Answer 13

13. D 7-9

Question 14

14. A does NOT establish an employee’s eligibility to legally work in the United States.

A. U.S. Passport
B. Social Security card
C. Certificate of Naturalization
D. Driver’s License

Answer 14

14. D 10-13

Question 15

15. If you are honest with a customer, can become realistic.

A. Disappointment
B. Expectations
C. Unrealistic goals
D. Frustration

Answer 15

15. B 9-1

Question 16

16. A (An) purchases workers’ compensation insurance.

A. Property owner
B. Building contractor
C. Employer
D. Employee

Answer 16

16. C 10-11

Question 17

17. A partnership .

A. Is a relationship between two or more people
B. Has unlimited business life
C. Does not dissolve in the event of a general partner
D. Limits the liability of the general partners

Answer 17

17. A 2-2

Question 18

18. A contractor puts in a claim under a comprehensive standard general liability policy. The policy has no additional coverage, riders, or floaters, and has a $600 deductible per occurrence. The claim is for a job-site accident that caused $3,000 of injuries to employees, $2,800 of injuries to a pedestrian, $3,300 damage to the contractor’s equipment, and $2,750 loss of project materials purchased by the contractor. The insurance company is liable for .

A. $2,200
B. $0
C. $1,000
D. $3,200

Answer 18

18. A $2,800 – $600 = $2,200

Question 19

19. is NOT a disadvantage of a C corporation.

A. Complex and expensive organization
B. Limitations on corporate activities
C. Unlimited life of the business
D. Extensive regulation and record-keeping requirements

Answer 19

19. C 2-3

Question 20

20. Depreciation is considered a expense.

A. Noncash
B. Cash
C. Value
D. Unnecessary

Answer 20

20. A 13-10; 13-11

Question 21

21. If an employee earns $10.00 per hour for a 50-hour week, the over-time premium is .

A. $50
B. $150
C. $500
D. $550

Answer 21

21. A $10 x 1.5 = $15 per hour for overtime
    $15 - $10 = $ 5 per hour overtime premium
    $5 x $10 (hours of overtime) = $50

Question 22

22. The monitors the compliance with building and safety codes.

A. Superintendent
B. Project Manager
C. Owners Representative
D. Safety Manager

Answer 22

22. B 8-6

Question 23

23. All businesses must file an annual income tax return except .

A. Corporation
B. Partnership
C. Sole proprietor
D. LLC

Answer 23

23. B 14-3

Question 24

24. A job commences on Wednesday, January 3rd. It is scheduled to be completed on January 19th of the same year. Including weekends, the job was completed on January 15th. There are days of float.

A. 4
B. 5
C. 6
D. 7

Answer 24

24. A 8-2

Question 25

25. A estimate is based on cost models from previous projects. A. Square-foot method B. Cost plus method C. Conceptual D. Unit price method

Answer 25

25. C 6-7

Question 26

26. Generally, tax is not a business tax. A. Income B. Self-employment C. Employment D. Property

Answer 26

26. D 14-1

Question 27

27. is (are) NOT a good guideline for a job description. A. Skills and knowledge needed B. Certificates C. Responsibility D. Insurances

Answer 27

27. D 10-10

Question 28

29. The penalty for late tax deposits between 1-5 days is . A. 2% B. 100% C. 5% D. 10%

Answer 28

29. A 14-5

Question 29

28. The management team for a Limited Partnership consists of . A. General partners B. Board of Directors C. Owner D. Manager

Answer 29

28. A 2-2

Question 30

30. is the type of insurance one would purchase for tools. A. GLC B. Builders risk C. D and O D. Equipment theft

Answer 30

30. D 3-3

Question 31

31. A contractor pays a workers’ compensation rate of $0.10 per $100 of office employee payroll, $2.00 per $100 office employee payroll and $0.36 per $100 of field employee payroll. Total office employee payroll for the year is $35,000. Total field supervisor payroll is $58,000. Total field employee payroll $325,000. The contractor receives a discount of 5% of total premiums for having a safety program in place. The total workers’ compensation for the year is . A. Less than $1,300.00 B. Between $1,300 and $1,700.00 C. Between $1,700.00 and $1,900.00 D. More than $2,000.00

Answer 31

31. D 0.10 x 35,000 = 35,000 (Based on 100) 3,500 ÷ 100 = 35.00 (Office payroll premium) 2.00 x 58,000 = 116,000 ÷ 100 = 1,1600 (Field S) 0.36 x 325,000 = 117,000 (Field E) 35 + 1160 + 1170 = 2,365 – 5% = $2,246.75

Question 32

32. A(n) is issued prior to the execution of a contract. A. Addendum B. Change order C. Modification D. Insurance policy

Answer 32

32. A 6-1

Question 32

34. The maximum number of shareholders permitted within a C corporation is . A. 25 B. 55 C. 75 D. Unlimited

Answer 32

34. D 2-3

Question 33

33. is anything of value. A. A signature B. Consideration C. A date D. A counteroffer

Answer 33

33. B 7-2

Question 34

35. Employees are not motivated from . A. Achievement B. Feedback C. Recognition D. Yelling

Answer 34

35. D 10-9; 10-10

Question 35

36. A surety bond is typically a party bond. A. One B. Two C. Three D. Four

Answer 35

36. C 3-6

Question 36

38. is a provision written into a contract that is used to limit risk in case of labor strikes. A. Indemnification B. Delays and extensions of time C. Schedule acceleration D. Force majeure

Answer 36

38. D 7-5

Question 37

37. When conflict exists between plans and specifications, one must follow . A. Specifications B. Building codes C. UL D. The stricter of the two

Answer 37

37. D 6-2

Question 38

39. For federal taxes, a sole proprietor is to use self-employment tax form . A. 1040 & schedule SE B. 1040 & schedule C C. 1040-ES D. 940 – EZ

Answer 38

39. A 14-2

Question 38

42. programs apply to high injury sites. A. Programmed inspections B. Unprogrammed inspections C. Automatic inspections D. Involuntary inspections

Answer 38

42. A 11-8

Question 39

40. An independent contractor is usually paid by . A. Hourly B. Weekly C. Biweekly D. Flat fee

Answer 39

40. D 12-2

Question 40

43. A sole proprietor is taxed on . A. Ordinary income B. Pass through wages C. Cost plus fee D. Gross revenues

Answer 40

43. A 2-1

Question 41

41. The return on total asset ratio is when there is a net profit (after taxes) or $16,000 and total assets of $48,000. A. 1/3 B. 3/1 C. 1/1 D. 3/3

Answer 41

41. A 13-7

Question 42

44. To help with cash flow, one should use . A. A contract B. Progress payments C. A lawyer D. An accountant

Answer 42

44. B 7-2; 7-3

Question 43

45. Units of measure do not include . A. Linear B. Square C. Cube D. Round

Answer 43

45. D 6-7

Question 44

46. A major purpose of tracking costs is because can indicate a possible problem. A. Overruns B. Under runs C. Profit D. Cutting corners

Answer 44

46. A 8-9; 8-10

Question 45

48. Given: An employee’s gross weekly payroll for a certain week is shown below. Use the Wage Bracket Method to determine the withholding. Marital Status Total # Exemptions Hourly Wage Regular Hours Overtime Hours Married 3 $21.00 35 0 The total amount of Federal Income Tax (only), to be deducted from the gross wages is . (choose closest answer) A. $24 B. $32 C. $41 D. $51

Answer 45

48. B 13-12; 13-13

Question 46

47. is NOT a purpose of marketing. A. To bring in new customers B. To retain existing customers C. To increase cash flow D. To hire employees

Answer 46

47. D 5-1

Question 47

49. Which of the following do not need an EIN number? A. An LLC with less than 3 owners B. Sole proprietorships that have no employees and file no excise or pension tax returns C. An S corporation D. A C corporation

Answer 47

49. B 14-1

Question 48

50. Employees must notify OSHA within days of the time they learn of an alleged discriminatory action. A. 8 B. 15 C. 30 D. 45

Answer 48

50. C 11-7