Florida General Contractor Florida Contractor Business Management 2

Question 1

A Florida contractor wants to reduce the tax withheld from an employee's paycheck. Which form does the employee complete to set federal income tax withholding?

Accepted Answer

IRS Form W-4

Answer

Employees complete Form W-4 to indicate withholding allowances that determine federal income tax withheld.

Question 2

Under Florida law, when must a contractor generally provide a written contract for a residential improvement exceeding $2,500?

Accepted Answer

When the project exceeds $2,500

Answer

Florida requires a written contract for residential improvements exceeding $2,500 with required disclosures.

Question 3

What financial statement shows a contractor's assets, liabilities, and owner's equity at a specific point in time?

Accepted Answer

Balance sheet

Answer

The balance sheet reports assets, liabilities, and equity as of a specific date.

Question 4

A contractor uses the percentage-of-completion method. If a job is 40% complete on a $500,000 contract, how much revenue should be recognized?

Accepted Answer

$200,000

Answer

Revenue recognized equals the percentage complete times total contract value: 40% of $500,000 = $200,000.

Question 5

Which Florida tax must a contractor typically collect on retail sales of tangible personal property?

Accepted Answer

Sales and use tax

Answer

Florida sales and use tax applies to retail sales of tangible personal property.

Florida General Contractor Practice Test

Florida General Contractor Practice Test

Florida General Contractor Florida Contractor Business Management 2