Idaho Electrical Contractor / Limited Electrical Contractor Exam

Accrual recognizes economic events by matching revenues to expenses at the time the transaction occurs and is GAAP compliant, while the cash method recognizes them only when payment is made or received and is not GAAP compliant (and is not permitted for a corporation, or a partnership with a C corporation partner, with average gross receipts over $5 million).

Leasing is a long-term agreement with a locked-in rate, less cash up front and potential tax benefits, while renting is short-term (by the hour, half day, or whole day) with the owner deciding when to return it and no fee for early return.

The current ratio divides current assets by current liabilities, while the quick ratio subtracts inventories from current assets first, giving a more conservative liquidity measure because inventories may not convert quickly to cash.

General overhead is costs not directly associated with a project (office rent, administrative wages, general liability insurance), while project overhead is costs tied to a specific project excluding labor (job-specific bonds and insurance, jobsite utilities, permit costs, project management wages).

Named-peril covers the contractor only for losses from items specifically named in the policy, while all-risk is the most common type and provides broader coverage.

A lump sum contract covers the entire project as one total price, while a unit price contract breaks the project into sections each billed separately with its own cost; both set a final price regardless of the contractor's actual costs.

Commercial general liability covers claims arising during construction, while completed operations covers third-party injuries or property damage occurring after the contractor has finished the operation.

Under the ADA, undue hardship means significant difficulty or expense judged by the employer's size, financial resources and business needs — a higher threshold than Title VII's religious accommodation standard of 'more than a minimal burden.'

The ADA generally applies to employers with 15 or more workers, while the ADEA applies to employers with 20 or more employees.

General partners control the business and are personally liable for partnership debts, while limited partners contribute capital and share profits but cannot manage the business and are liable only up to the amount contributed.

An independent contractor must be free from the right of direction and control in contract and in fact (control over manner, method, or mode of the work indicates employee status), the method of payment is not controlling, and genuine doubt must be resolved in favor of finding the worker an employee.

Specifications — the detailed description of blueprints/plans including material types and quantities — are listed as an optional element (item 5), unlike the common parts that all construction contracts should include.