Business FinancesQuestion 1212 of 1605
A contractor completes a $180,000 contract billed with 10% retention. Two-thirds of the way through he has billed $120,000. How much retention is being held at that point?
a.$108,000
b.$18,000
c.$6,000
d.$12,000
Explanation
Retention held to date = 10% of amount billed to date = 10% x $120,000 = $12,000. Retention accrues on each progress billing until released at completion.
Practice all 1605 questions free — no signup required.
Related questions on this topic
- The main financial risk of taking on a job much larger than a contractor's usual size is:
- A contractor buys $5,000 of materials with terms 1/15, net 45. If he pays on day 12, what does he pay?
- A contractor's gross profit margin has fallen from 30% to 22% over a year. The most useful first step to diagnose why is to:
- Which of the following BEST reduces a contractor's need for outside financing on a project?
- A contractor's estimate omitted the 9% sales tax on $20,000 of materials. How much profit will this error erase if he cannot pass it on?
- A contractor's business is organized as an S corporation. A key financial feature of an S corp is that:
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)