Financial Management and Construction Accounting, Quizzes of Engineering

Download Financial Management and Construction Accounting and more Quizzes Engineering in PDF only on Docsity! Michigan Builders License Exam (2024-2025) Questions and Verified Elaborations (GRADED A) Liam the contractor is doing some excavating work for his sister, and realizes too late that the angle of the slope of his excavation is greater than the angle of repose. The structure collapses, and his sister ends up hiring someone else. What should Liam have done differently Installed a retaining wall to hold the slope back Match inflow and outflow of cash and place both in the same tax period When it comes to comparing short term and long term income with the timeframe when costs and expenses were incurred, it would be best to If a contractors FUTA liability exceeds _________ then FUTA taxes are deposited quarterly 500 A document which shows the financial position of a company for the year, also called a profit and loss statement is known as ____________ Income Statement The Function of the balance sheet is to ________ Show the financial condition of the business on a specific date The amount remaining after deducting direct and indirect costs from revenues is known as______ Net Total Profit The ______ summarizes the cash inflows and outflows from operating, investing, and financing activities during a specific time. Cash Flow Statement What tax is deducted (withheld) solely from employees wages Income Tax What is the disadvantage of using the accrual method of accounting? This system requires more record keeping. What is a form W-3 Employers summary of W-2s issued to employees Jasmine the contactor is having a busy year for work. She has three long term projects going on at once, and there have been at least 10 short term projects completed throughout the year. Jasmine does her own book keeping, and the best practice would be for her to do what? Keep separate ledgers for short term and long term accounts receivable Fire blocking can be required in walls over_____ high 10' An Expansion Joint The sand added to cement mixture is know as Fine Aggregate Crazing is ______ The appearance of fine cracks that appear in irregular patterns over the concrete surface, Which is NOT one of the more common admixtures? Water expanders Elements of a contract include Consideration An offer Acceptance of an Offer A warranty period usually lasts how much time? One year form the time the project ended When is a party in breach of a contract When there is a failure to fully and properly perform a duty and no legal excuse sufficient A contractor failed to completely clean the job site, and some of the equipment is damaged, most likely due to the poor maintenance. The contract does not specify that the contractor must ensure the site is cleaned each day. What kind of breach could this be considered? Immaterial Which party usually obtains a Construction loan for a project the buyer which type of contract assigns the prime contractor responsibility for developing the entire project, from designing to building a ready to use facility to be turned over to the owner Turnkey A good rule of thumb from the length of time a contractor should maintain a complete and legible copy of all documents relating to the contract is as follows. up to 7 years What is another term for a "one step" combined construction loan/mortgage Construction permanent loan What are changes to the project/contract documents made before the date bids are accepted called? Addenda A contract is what kind of agreement between two or more persons Binding Which contract documents MUST be signed by both the owner and the contractor The Standard Form Agreement What is the purpose of Addenda in a contract To make changes in the project before bids are accepted A contractor receives an invoice on December 1 in the amount of $5,269 and the terms are 2/10 net 30. If the Invoice is processed by December 9 what is the amount of payment due rounded to the nearest dollar? $5,164 If a contract is made with someone while under the influence of alcohol, That contract is _____ Unenforceable A ______ gives the owner the right to require the contractor to correct deficiencies in the work performed. Warranty Which type of contract provides for starting the project before all the plans are complete? Phased/ Fast Track Which of these is NOT an element of laying a concrete slab o grade? Must be placed above ground, at least 12" When installing hard wood flooring over concrete, the slab should be allowed to cure for a minimum period of ______ Two Months Footings should be placed at a minimum of _____ and farther in cold climates. 12" below Grade In which case would a construction joint NOT be used? When the entire slab of concrete is being poured at once What is the minimum width of a foundation supporting a two story light frame house on clay soil? 12" What should be placed beneath a pressure-treated sill supporting an interior wall and the concrete slab? 30/felt Which of the following applies to insulation? Flame spread does not exceed 25 The resistance of a building element, such as a wall, to the passage of sound is known as its STC Value Some _____ is manufactured with ceramic fiber incorporated as a fire retardant. fiberboard What is foam in place insulation used for? spraying into small areas to control air leaks The use of above deck thermal insulation is permitted as long as the insulation is covered with an approved roof covering Insulation made from material that expands as it is installed is known as Spray-Foam Insulation What is another term for blown-in insulation Loose-fill Pre-cut insulation within a membrane is usually referred to as_____ Blanket Insulation How can a type of insulation's R-value increase? Using it in layers Professional liability insurance is especially important for contractors who provide all these services EXCEPT Surveying Which of these is not a possible penalty for failing to provide workers compensation coverage? The employers license is revoked and the employer is unable to do contracting work The most common endorsement modification to a CGL policy is ______ A known or ongoing damage or injury endorsement Personal car insurance policies often exclude ___________ from coverage in the event of an accident. Commercial Activities When self insuring, accident insurance can be an alternative to ________ Workers compensation insurance Builders risk insurance protects the contractor against Any loss or damage to the project, structure and materials purchased for the project remove excess mortar Which of these is an advantage of concrete brick over paver brick? ease of installation When installing brick in a wall, what is the preferred type of flashing used behind the brick? Copper Firebrick walls which line the interior of a fireplace must be laid using refractory cement with joints that are no more than ___________ thick. 1/4" Which of these is NOT another term for fake stone products? Natural Stone Applying compression after application of mortar would have the following impact on the seam (or joint) created? All of these would be created What is the minimum number of coats of Portland plaster applied on the exterior over masonry? 2 What must be installed at the intersection of chimneys or other masonry construction with frame walls? Flashing What is mortar joint thickness tolerance from the specified dimensions for a bed joint? 1/8" ________ is a filler product with a high water content grout Which of these factors affects the adhesion of mortar to surfaces, but does not apply to the curing of cement? The porosity This type of brick is recommended for walkways Paver brick What is the clearance of a joist from the back of a masonry chimney? 4" The right amount of moisture and limitations with regard to excessive heat or cold have an impact on which of these in regards to concrete? All of these Flashing is so important in brick masonry because moisture is one of the biggest issues in masonry Cindy needs to do some repair work to her home before putting it on the market . She needs mortar to fill in a few unsightly cracks in brick patio, but is unsure of which type to get. Given the information provided, which type of these would be her best option? Type N Which of the following applies to unfilled hollow masonry piers supporting a beam Unsupported height cannot exceed 4 times the least dimension A ________ is a built-out portion of a wall that forms a bulge. pilaster CMUs are often used in all these except rafter construction What is the minimum engagement of wall tie embedment in solid masonry units 1 1/2" The temperature of new concrete should not be allowed to fall below ______ F during the curing period 50 A description or identification of the materials to be used in a project will be found in the project _________ Specifications In a construction plan, a section view would be named with a/an ______ A How long must wood flooring be allowed to acclimate? at least 4 or 5 days Quality control steps include all of these except problem organization Who is in charge of the responsibilities of scheduling and tracking inspections, permits, and licenses? The project manager Which of these is the best way to procure materials for a project Ordering materials incrementally, based on project procurement plan Which of these is not a good strategy for ensuring that subcontractors are financially sound? Allow them to figure it out themselves When conducting job-site meetings with building inspection officials, be sure to _____ Keep minutes of the meeting Cost management ties directly into what other type of management Time management _______ management involves knowing the financial and human resources required for a project. Cost It is good business practice for contractors to maintain which of the following "project documents" on every project All of these Proper planning and scheduling results in all of these benefits except Increased quality of workmanship What is one way a general contractor can relieve the challenges of working with subcontractors ? Developing long-standing relationships with specific subcontractors and using them regularly Applicants for the residential builder or maintenance and alteration contractor salesperson license must complete all of these except Show records of 3 years experience Failure to comply with an audit by the department will result in _______. an investigation of a complaint initiated by the department Which of these would not be grounds for a complaint against a licensee Unexpected rain at a job site A state license must be displayed where? In a place of business ________ is regulated by the Equal Employment opportunity Commission The Americans with Disabilities Act The Uniform arbitration Act is intended to encourage and facilitate the resolution of civil actions through __________. arbitration All advertising must include what information Contractor's Business address, contractors license number, contractors Name Businesses which maintain more than one place of business in the state of Michigan must obtain _________ for each location? At a minimum, deposits of taxes withheld must be made on a __________ basis Monthly It is best to keep separate ledgers for short term and long term accounts receivable because some discrepancies will be expected with long term accounts receivable and the final disposition of the contract What is the formula for finding the gross profit to sales ratio total sales - cost of goods / total sales The balance sheet summarizes all of these except investments The Good contractor C needs to find their working capital ratio. Their current assets are 30,000 and their current labilities are 15,000 what is the working capital ratio? 2 All of the following are calculated based on the employees earnings. The employee pays a portion of each except for _______ which is paid entirely by the employer. Federal Unemployment Tax What tax is deducted (with held) solely from employees wages? Income Tax According to the Michigan Barrier free ramp guidelines, a 1:12 ramp slope ratio is required. If a contractor is building a ramp with 30 inch rise, how many feet of run would the ramp have to be? 30 Why should blocking be used in the installation of cabinetry? To ensure that the cabinet and its contents remain securely fastened to the wall Which is not one of the basic styles of roof Shoulder The maximum spacing allowed between various sizes of joists or rafters is called what? on center spacing To make installation of baseboard, crown, or other molding easier, ______ should be provided at the ends at the time of framing Blocking Which of these is NOT an element of floor framing Fire proofing Joists should be__________ under each load bearing wall that is parallel to the joists. Doubled The chief factor controlling the strength of concrete is __________ The water cement ratio When pouring a monolithic slab, the minimum height for the top of the slab should be how many inches above the ground 6" What is the first step i finishing a concrete slab? Screeding The most basic type of concrete panel is the _______ Solid concrete panel which of these should you NOT use to form slab edges for a monolithic slab? Precast concrete When performing a slump test, the concrete should be poured into the slump cone in three layers, each of which is "rodded in" with _____ strokes of tamping rod 25 Subcontractors wishing to protect their rights to a construction lien in the event of non-payment shall provide a "notice of furnishing" to the property owner, lessee or designee within ________ days of the first delivery of goods or services 20 Additions to property insurance, called _______ provide extra coverage for unforeseen issues. Riders Property insurance covers all but A company vehicle A bond to protect a contractor from dishonest employees is called a _________ Fidelity Bond Comprehensive general liability insurance is also called what? Business insurance ____________ insurance covers up to $1,000,000 in property damage no fault What is another term for professional liability insurance? Errors and omissions insurance Which of these is covered by workman's compensation? An employee working at a private company for at least 35 hours a week for 13 weeks What should be installed over plywood before laying more ceramic tile? Backerboard What is the maximum spacing of studs supporting 1/8" wood veneer paneling? 16" with 3/8" Gypsum board backing A vertical mortar joint is known as a _______ Head joint Which type of mortar would be used for work below grade? Type S What is the purpose of weepholes Provide drainage for brick veneer When cultured stone began to take over the market, natural stone producers created this product to counter. Natural thin veneer stone Flashing is so important in brick masonry because Moisture is one of the biggest issues in masonry The temperature of new concepts should not be allowed to fall below ______ F during the curing period 50 F CMUs are often used in all except rafter construction _______ is a filler product with high water content Grout Which of the following applies to unfilled hollow masonry piers supporting a beam? Unsupported height cannot exceed 4 times the least dimension What is the mortar joint thickness tolerance from the specific dimensions for a bed joint? 1/8" What is the clearance of a joist from the back face of a masonry chimney? 4"