Exam Cheat Sheet · Quick Reference

Idaho Plumbing Specialty Contractor Exam

Idaho  ·  PSI Services Contractor

Verified, not estimated. Every figure below is drawn from the official exam structure we maintain — question counts, passing standard and topic weighting. Practice questions are grounded in the source law with statute citations. We omit any figure we can't verify rather than guess at it.
Total questions
100
Passing score
75%
Exam time
240 min
Administered by
PSI Services Contractor
Format
Reference materials allowed

Idaho State Portion 100 questions

Contractor's Business and Law Reference Manual Section 1 1 Q · 1%
Business plan components and purposeForms of business organization and their legal characteristicsIdaho contractor licensing requirements and consequences of unlicensed workSelecting professional advisors (accountant, attorney, insurance agent, banker)Checklist for starting a business in IdahoResearching a business before startupFinancial planning elements within a business plan
Contractor's Business and Law Reference Manual Section 2 2 Q · 2%
Business organization methods (sole proprietorship, partnership, LLC, corporation)Steps and checklist for starting a contractor businessSelecting and working with a CPA or LPA accountantSelecting and working with a business attorneySelecting an insurance agent and required business insuranceSelecting a bank and evaluating financial services for small businessesEmployer responsibilities (employment taxes, workers' compensation, immigration verification)Business registration, licenses, and permits requirements
Contractor's Business and Law Reference Manual Section 3 2 Q · 2%
Types of business organization structures in Idaho (sole proprietorship, partnership, LLC, corporation)Liability characteristics of each business entity typeRegistration and filing requirements with the Idaho Secretary of StateDifferences between S Corporation and C Corporation tax treatmentLimited Partnership vs. Limited Liability Partnership distinctionsRequirements for foreign business entities operating in IdahoSecurities regulations and Idaho Department of Finance requirementsProfessional service corporations and professional LLCs
Contractor's Business and Law Reference Manual Section 4 2 Q · 2%
DOPL mission and regulatory boards overviewIdaho license qualification requirements and application processConsequences of working without a required licenseSelecting and working with a professional accountant (CPA/LPA)Selecting and working with a business attorneySelecting an insurance agent for business coverageSelecting a bank and evaluating financial services for a business
Contractor's Business and Law Reference Manual Section 5 20 Q · 20%
Bookkeeping process and financial recordkeeping proceduresFinancial statements: balance sheet, income statement, and cash flow statementCash vs. accrual accounting methodsFinancial ratios: liquidity, efficiency, leverage, and profitabilityDepreciation methods including straight-line and MACRSProject accounting methods: completed contract vs. percentage of completionEquipment leasing, renting, and purchasing decisionsCash flow management and small business financial health
Contractor's Business and Law Reference Manual Section 6 20 Q · 20%
Anti-discrimination laws and protected classes (ADEA, ADA, Title VII, EPA, GINA, Pregnancy Discrimination Act)Employee leave entitlements under FMLAWage and hour requirements under FLSA (minimum wage, overtime, exemptions)Idaho-specific wage payment laws and recordkeeping requirementsFederal contractor labor standards (Davis-Bacon, Service Contract Act, Walsh-Healey, Copeland Anti-Kickback)Idaho new hire reporting requirementsRequired workplace poster obligationsEmployee polygraph protection and background check limitations (EPPA, CCPA)
Contractor's Business and Law Reference Manual Section 7 20 Q · 20%
Types of contractor insurance coverage (liability, builder's risk, automobile, property)Workers' compensation insurance requirements and penalties in IdahoUnemployment insurance employer liability and experience ratingSurety bonds: bid bonds, performance bonds, and payment bondsIndependent contractor vs. employee classification for UI tax purposesMiller Act requirements for federal public works bondingReportable and non-reportable wages for unemployment insurance purposesUnemployment insurance tax due dates, penalties, and filing requirements
Contractor's Business and Law Reference Manual Section 8 7 Q · 7%
Types of bids and competitive bidding proceduresFactors to consider when deciding to bid a jobPlans and specifications componentsEstimation methods: conceptual, preliminary, and detailed estimatesQuantity survey/takeoff process and measurement unitsLabor, materials, and equipment pricing in detailed estimatesGeneral and project overhead costsMarkup, contingency, and profit calculation
Contractor's Business and Law Reference Manual Section 9 8 Q · 8%
Essential elements of a legally valid contractTypes of construction contracts (lump sum, cost plus, time and materials, design-build, etc.)Common and optional parts of a construction contractIdaho statute on retention proceeds in private construction contracts (Idaho Code 29-115)Statute of Frauds requirements for written agreements (Idaho Code 9-505)Breach of contract definition and remediesChange orders and changed work provisionsTermination clause conditions and contract legalities
Contractor's Business and Law Reference Manual Section 10 10 Q · 10%
Five phases of project management (initiation, planning, executing, monitoring/controlling, closing)Project scheduling tools: Critical Path Method (CPM) and Gantt chartsFloat/slack time and earliest/latest start dates in schedulingCost control procedures: variance detection, diagnostics, and corrective actionProject management personnel roles (owner's representative, CM/PM, superintendent, foreman, expediter)Quality control during construction: conformance to design specificationsProject closeout: project close and contract closureInventory control and purchase order systems as cost control methods
Contractor's Business and Law Reference Manual Section 11 5 Q · 5%
OSHA recordkeeping requirements and forms (Form 300, 300A, 301)Employer reporting obligations for fatalities and hospitalizationsOSHA poster and workplace display requirementsConstruction Safety Act and OSH Act overviewOSHA cooperative and voluntary protection programs (VPP, SHARP, OSHA Challenge)OSHA consultation services for small businessesFinancial impact of workplace safety and health programsOSHA training and compliance assistance resources
Contractor's Business and Law Reference Manual Section 12 1 Q · 1%
Federal and Idaho state income tax filing requirements by business entity typeIdaho sales and use tax obligations for contractorsIndependent contractor vs. employee classification using the right-to-control testFederal employment taxes and forms for businesses with employeesContractor/retailer distinction and sales tax responsibilitiesTax recordkeeping requirements and periods of limitationsProperty taxes and taxpayer identification number requirementsIdaho sales tax exemptions applicable to contractors
Contractor's Business and Law Reference Manual Section 13 2 Q · 2%
Right to file a mechanic's or materialman's lien in Idaho (Idaho Code 45-501)Filing requirements and deadlines for lien claims (90-day filing window, county recorder, required claim contents)Priority and ranking of lien claimants (laborers, materialmen, subcontractors, original contractor, engineers/surveyors)Duration of liens and enforcement proceedings (6-month binding period, court action to enforce)Release of mechanic's lien by posting surety bond (bond form, petition process, hearing procedures)General contractor disclosure requirements for residential property (Idaho Code 45-525, lien waivers, insurance proof)Contractor and subcontractor recovery rights and deductions (Idaho Code 45-511)Exemption of materials from execution and personal action to recover debt (Idaho Code 45-514, 45-515)

Key Distinctions

Accrual Accounting MethodvsCash Accounting Method

Accrual recognizes revenues and expenses when the transaction occurs (GAAP-compliant), while cash recognizes them only when payment is made or received and is not permitted for corporations averaging over $5 million in gross receipts.

Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance
Renting EquipmentvsLeasing Equipment

Renting is a short-term arrangement (by the hour, half day, or day) with no early-return fee and maintenance handled by the rental company, while leasing is a longer-term contractual commitment.

Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Leasing, Purchasing, or Renting Equipment
Current RatiovsQuick Ratio (Acid-Test Ratio)

The current ratio divides all current assets by current liabilities, while the quick ratio excludes inventories from current assets for a more conservative liquidity measure.

Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Liquidity Ratios
Lump Sum ContractvsUnit Price Contract

A lump sum contract covers the entire project as one fixed total, while a unit price contract breaks the project into separately billed sections each with its own cost.

Section 9: Contracts — Lump Sum and Unit Price (Fixed Price) (Page 86)
Percentage of Completion MethodvsCompleted Contract Method

Percentage of completion recognizes a portion of revenue and expenses each accounting period (preferred for matching and leveling earnings), while the completed contract method defers recognition until the project is finished.

Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Percentage of Completion Method
Named-Peril Builder's Risk InsurancevsAll-Risk Builder's Risk Insurance

Named-peril coverage protects only against losses from specifically listed items in the policy, while all-risk builder's risk is the more common and broader coverage.

Section 7: Insurance – Builders Risk bullet, Page 65
General PartnervsLimited Partner

A general partner controls the business and is personally liable for partnership debts, while a limited partner contributes capital and shares profits but cannot manage the business and is liable only up to the amount contributed.

Division of Occupational & Professional Licenses Contractor's Business and Law Reference Manual (Idaho), Pages 16-17
Balance SheetvsIncome Statement

A balance sheet shows the overall financial position (assets, liabilities, equity) and liquidity at a point in time, while an income statement reports only profit or loss activity during a reporting period.

Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Balance Sheet
Private Sector BiddingvsPublic Works Bidding

Private sector owners are not required to advertise for bids and can choose when and who they invite to bid, while public works projects are required by law to be advertised for bids.

Section 8: Estimating & Bidding, Bidding section, Page 79
Employee (Covered Employment)vsIndependent Contractor (Exempt)

A worker is classified as an employee subject to Idaho UI tax when the employer controls the manner, method, and mode of work; an independent contractor is free from such direction and control in both contract and fact.

Contractor's Business and Law Reference Manual, Section 7: Insurance — Independent Contractor
Change OrdervsOriginal Contract

The original contract defines the initial agreed scope of work, while a change order is a separate document completed to formally record and authorize any changes or additions to that scope.

Division of Occupational & Professional Licenses Contractor's Business and Law Reference Manual (Idaho), Page 85-86
PostingvsTrial Balance

Posting is the process of transferring totaled journal entries to the general ledger at period end, while a trial balance is the subsequent step of totaling all debit and credit balances to confirm they are equal.

Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Bookkeeping process

Key Terms

Idaho Unemployment Insurance — Independent Contractor Control Test Contractor's Business and Law Reference Manual, Section 7: Insurance — Independent Contractor
Under Idaho UI tax rules, a worker is NOT an independent contractor if the employer controls the manner, method, and mode of doing the work; the method of payment alone does not determine status.
Idaho UI — Employer Record-Keeping Requirement Contractor's Business and Law Reference Manual, Section 7: Insurance — Independent Contractor, recordkeeping
Idaho employers must maintain separate records showing wages and hours of exempt independent-contractor employment distinct from covered employment, or they must pay UI tax on all wages including exempt ones.
Idaho UI — Cost Reimbursement Election Contractor's Business and Law Reference Manual, Section 7: Insurance — Cost Reimbursement Employers
Governmental units and nonprofit organizations defined under IRS Section 501(c)(3) may elect to reimburse the Idaho Employment Security Fund directly for benefit costs instead of being assigned an experience rate.
Certificate of Assumed Business Name (Idaho) Division of Occupational & Professional Licenses Contractor's Business and Law Reference Manual (Idaho), Page 16
A filing required with the Idaho Secretary of State when a general partnership does not operate under the full legal names of each owner.
Application for Registration as a Foreign LLC (Idaho) Division of Occupational & Professional Licenses Contractor's Business and Law Reference Manual (Idaho), Page 17
An LLC organized in another state must submit an original signed Application for Registration as a Foreign Limited Liability Company plus a duplicate copy to the Idaho Secretary of State before operating in Idaho.
Professional Service Corporation Name Requirements (Idaho) Division of Occupational & Professional Licenses Contractor's Business and Law Reference Manual (Idaho), Page 19
A Professional Service Corporation formed in Idaho must end its name with 'Chartered,' 'Professional Association,' 'Professional Corporation,' or the abbreviations 'PA,' 'PC,' or 'Chtd.'
Matching Principle (Accrual Accounting) Section 5: Accounting & Finance, Accrual Method section, Page 24
The accounting rule that revenues and expenses are recognized when the transaction occurs rather than when cash is exchanged, forming the basis of GAAP-compliant accrual accounting.
Percentage of Completion Formula Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Percentage of Completion Method
Cumulative revenue is calculated as (cost incurred to date ÷ total estimated cost) × contract price, recognizing revenue proportionally across accounting periods.
Balance Sheet Equation Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance
The fundamental accounting equation underlying the balance sheet: Assets = Liabilities + Equity, and the two sides must always balance.
IRS Section 179 Deduction (2014 limit) Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — IRS Section 179 Deduction
Under Section 179, a business may deduct up to $500,000 for qualifying equipment purchases in a single year, with the deduction phasing out when total equipment purchases exceed $2 million.
Depreciation — Placed in Service Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — When Does Depreciation Begin and End?
Depreciation begins when property is 'placed in service,' meaning it is ready and available for its specific use, even if not yet actively being used.
1099 Form Threshold Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Annually checklist
A business must complete and mail a 1099 form to each independent contractor who earned more than $600 from the business in the previous year.
Working Capital Ratio (Healthy Range) Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Working Capital Ratio
The working capital ratio should be between 1.2 and 2.0; below 1.0 indicates negative working capital, and an excessively high ratio may signal too much idle inventory or cash.
Interest Coverage Ratio Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Leverage or Safety Ratios
Calculated as EBIT divided by interest expense; when this ratio falls to 1.5 or lower, the company's ability to meet its interest expenses may be questionable.
Cash Flow Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Cash Management
Cash flow equals cash receipts minus cash payments over a given period, and is also expressed as net profit plus depreciation, depletion, and amortization charges.

Formulas to Know

Balance Sheet EquationAssets = Liabilities + Equity
Current RatioCurrent Assets ÷ Current Liabilities
Quick Ratio (Acid-Test)(Current Assets − Inventories) ÷ Current Liabilities
Interest Coverage RatioEBIT ÷ Interest Expense
Percentage of Completion — Cumulative Revenue(Cost Incurred to Date ÷ Total Estimated Cost) × Contract Price
Cash FlowCash Receipts − Cash Payments [or] Net Profit + Depreciation + Depletion + Amortization
Accounts Receivable TurnoverNet Credit Sales ÷ Average Accounts Receivable
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