Idaho Public Works 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 does not meet GAAP (in the XYZ example accrual showed $4,000 profit at May 31 and 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 choosing when to return it and no fee for returning early.

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

A lump sum contract covers the entire project as one total, 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.

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

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 work.

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 for the amount contributed.

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

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

For Idaho UI tax exemption, employer control over the manner, method, or mode of doing the work indicates the worker is NOT an independent contractor, while the method of payment is explicitly not controlling.

Some items are listed as common parts all construction contracts should include, while specifications (a detailed description of blueprints/plans including material types and quantities) are listed as an optional element (item 5).

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