Michigan Contractors License Exams

Michigan Residential Builder

Sample Questions for the Michigan Residential Builder Exam

  1. Business equity is shown on the financial statement called the:
    1. Summary of operations
    2. Balance sheet
    3. Statement of cash flows
    4. Income statement
  2. What is the CSI-MASTERFORMAT?
    1. A book of rules governing all of the material to be used and the work to be performed on a project
    2. A list of all the drawings related to a project
    3. The method developed to organize the specification and bid packages into an industry standard number/classification system
    4. The legal binding portion of the proposal
  3. A business that keeps accounting records separate from those of its owner but is not legally separate from its owner is called a what?
    1. Corporation
    2. Limited liability partnership
    3. Franchise
    4. Proprietorship
  4. Straight-line depreciation is computed by?
    1. Dividing the value of the asset by the years in the recovery period, and claiming the same deduction every year
    2. Depreciating the asset only to the extent that it is paid for; so if you finance the asset, you can claim a write-off only to the extent that you pay the bank
    3. Taking the expense as a straight line-item write-off in the year purchased
    4. Writing off the asset only over 35 years
  5. In an operation including shop work, you could have up to four different types of inventory. These are:
    1. Raw materials, purchased materials, overstock, and finished goods
    2. Raw materials, job-assigned materials, supplied, and all other
    3. Regular inventory, special-order inventory, pending inventory, and supplies
    4. Raw materials, supplies, work in process, and finished goods
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