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.

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  1. A painting contractor issues a change order increasing the contract by $3,000. How should this be recorded in the job cost accounting system?

    Answer: It should be added to the original contract value and tracked separately

    Change orders must be documented, added to the revised contract value, and tracked separately to maintain accurate job cost records.

  2. Under California's prompt payment laws, if a general contractor wrongfully withholds payment from a painting subcontractor, the subcontractor may be entitled to:

    Answer: The original amount plus 2% monthly interest penalty

    California's prompt payment statutes allow subcontractors to recover the withheld amount plus a 2% per month interest penalty for unjustified late payment.

  3. A painting contractor's net profit margin is calculated as:

    Answer: Net Profit ÷ Net Revenue × 100

    Net profit margin expresses net profit as a percentage of net revenue, showing how much of each sales dollar becomes profit after all expenses.

  4. Which IRS schedule must a self-employed sole proprietor painting contractor use to report business income and expenses on their personal tax return?

    Answer: Schedule C

    Schedule C (Profit or Loss from Business) is used by sole proprietors to report business income and deductible expenses on Form 1040.

  5. A painting contractor is considering whether to lease or buy a spray rig. Which financial concept helps evaluate the long-term cost difference between these two options?

    Answer: Depreciation schedule analysis

    Analyzing the depreciation schedule of a purchased asset versus lease payments helps determine the true long-term cost of ownership versus leasing.

  6. A California painting contractor hires a worker and classifies them as an independent contractor to avoid payroll taxes. Under California AB5, this misclassification can result in:

    Answer: Back taxes, penalties, and potential license action by the CSLB

    AB5 uses a strict ABC test for worker classification, and misclassification can expose contractors to back payroll taxes, penalties, and CSLB disciplinary action.

  7. What is the purpose of a contractor's 'overhead markup' added to direct job costs when preparing a bid?

    Answer: To recover fixed business expenses not directly tied to individual jobs

    Overhead markup ensures that each job contributes to covering fixed business expenses like rent, insurance, and office staff that exist regardless of which jobs are running.