Michigan Contractors License Exams

Michigan Maintenance & Alteration Contractor

Sample Questions for the Michigan Maintenance & Alteration Contractors Exam

  1. If somebody cannot make payment on time, you can:
    1. Propose a monthly repayment schedule
    2. Forbid or limit future credit
    3. Get a commitment for a deadline for full payment, plus interest
    4. All of the above
  2. A source document is:
    1. Something you use to determine how to classify expenses.
    2. Another name for a deposit slip that shows details of the source of funds being put into the bank.
    3. Documents that explain earnings and expenses, including sales orders, purchase orders, invoices, and receipts.
    4. The tracers banks put on deposited funds to help you locate missing checks.
  3. A job cost system should be:
    1. Designed according to the limitations or potential of your software program
    2. Dictated by your accountant based on current reporting standards
    3. Programmed to ensure allocation of expenses so that no job will be unprofitable
    4. Made to work efficiently so that the job of tracking will be easier
  4. The most accurate way to allocate expenses is by:
    1. Assigning selling expenses by job, and then allocating overhead on the basis of gross profit percentage.
    2. Assigning overhead and selling expenses strictly on the basis of gross profit.
    3. Assigning overhead and selling expenses on the basis of sales, because gross profit varies by line of business
    4. Making absolutely no distinctions between selling and fixed overhead expense
  5. Breaking down information by job is useful because:
    1. You have to report to the IRS by job on your tax return
    2. You can more readily identify variance trends and correct problems early
    3. Banks always require a lot of detail when you ask for a loan
    4. All of the above
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