Idaho HVAC 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 records income and expenses only when payment is made or received and is not GAAP compliant (in the manual's example, accrual showed $4,000 net profit at May 31 while cash showed $0).

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 how long to keep it and no fee for returning early.

The quick ratio divides current assets minus inventories by current liabilities, making it a more conservative liquidity measure than the current ratio, which divides total current assets by current liabilities.

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

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

Under the ADA, undue hardship means significant difficulty or expense in light of 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 for the amount contributed.

Completed operations covers injuries or property damage suffered by third parties as a result of the contractor completing an operation (claims arising after the work is finished), while commercial general liability covers claims during construction.

Percentage of completion recognizes a portion of total contract revenue and estimated costs in each accounting period and better matches revenue and expenses to the period of benefit, while the completed contract method may only be applied to projects completed within two years by contractors whose average annual income is less than $10 million over the past three years.

The balance sheet shows liquidity status and the ability to meet short-term debt obligations (Assets = Liabilities + Equity), while the cash flow statement summarizes actual or anticipated cash incomings and outgoings over a period and can be the most valuable report for a contractor because of the importance of cash control.

For Idaho UI tax exemption the worker must be free from the right of direction and control in contract and in fact, so employer control over the manner, method, or mode of the work indicates an employee; the method of payment (commission, share of profits, fee, job, or piecework) is not controlling, and genuine doubt under the right-to-control test must be resolved in favor of employee status.