Practice Test GeeksC33 - C-33 California Painting Contractor License Practice Test
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Business Financial Flashcards

7 cards from real C33 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Business Financial flashcards as text

  1. A painting contractor receives a $50,000 contract. Under California law, what is the maximum deposit the contractor can legally collect before starting work?

    Answer: $1,000 or 10% of the contract price, whichever is less

    California Business and Professions Code §7159.5 limits contractors to collecting no more than $1,000 or 10% of the contract price (whichever is less) as a down payment.

  2. Which financial document provides the best snapshot of a painting company's assets, liabilities, and owner's equity at a specific point in time?

    Answer: Balance sheet

    A balance sheet shows the company's financial position at a specific date by listing assets, liabilities, and equity.

  3. A California painting contractor fails to pay workers' compensation premiums for 60 days. What is the most likely CSLB consequence?

    Answer: The contractor's license is suspended

    CSLB automatically suspends a contractor's license when workers' compensation insurance lapses, as required by California law.

  4. What does 'accounts payable' represent on a painting contractor's balance sheet?

    Answer: Money the contractor owes TO suppliers and vendors

    Accounts payable are short-term obligations the contractor owes to suppliers, subcontractors, or vendors for goods and services received.

  5. A C-33 contractor wants to calculate gross profit. Which formula is correct?

    Answer: Gross Profit = Net Sales – Cost of Goods Sold

    Gross profit equals net sales minus the direct costs of completing jobs (cost of goods sold), before subtracting operating expenses.

  6. Which type of business entity provides the owner of a small painting company personal liability protection while being taxed as a pass-through entity by default?

    Answer: Limited Liability Company (LLC)

    An LLC shields owners from personal liability for business debts while its profits and losses pass through to the owner's personal tax return by default.

  7. When preparing a job cost estimate, a painting contractor should include which of the following as an indirect (overhead) cost?

    Answer: Office rent and administrative salaries

    Office rent and administrative salaries are overhead costs that support the business generally, not tied to a single specific job.