The following samples may be useful to review for the type of questions that may be included in the exam.

1. All of the following are advantages of a corporation except

(A) Double taxation.

(B) Easier to obtain financing.

(C) Limited liability.

(D) The corporation survives the incorporate.

2. A contractor’s monthly invoice from a supplier is $5,238.55. The contractor pays the invoice on the 8th of the month, and the terms are 3 percent by the 10th, net 30. How much will the contractor pay?

(A) $5,081.39

(B) $1,571.57

(C)$3,666.99

(D)$5,393.71

3. What provision gives the owner the right to require the contractor to repair and correct defective work?

(A) Conformity provision

(B) Warranty provision

(C)Aesthetics provision

(D)Indemnification provision

4. Sales for the year totaled $935,000. Direct costs equaled $623,000 and indirect costs equaled $22,000. What is the gross profit on the income statement?

(A) $290,000

(B) $312,000

(C) $645,000

(D) $913,000

Answers to sample questions: 1-A; 2-A; 3-B; 4-A.