Exam Cheat Sheet · Quick Reference

Idaho Electrical Contractor / Limited Electrical 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
70%
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%
Purpose and components of a business planExecutive summary elements and financial goal-settingManagement plan: ownership, organization, and managerial experienceMarketing plan: market analysis, competition, pricing, and customer acquisition strategiesOperations plan: day-to-day management, staffing, equipment, and insurance requirementsFinancial plan: projected financial statements, startup capital, collateral, and operating budgetPre-business research questions and resources (SBA, SCORE, Idaho SBDC)Supporting documents required for a business plan
Contractor's Business and Law Reference Manual Section 2 2 Q · 2%
Services provided by CPAs and LPAs for contractor businessesSelecting and working with an accountant, including fees and engagement lettersRole of the Idaho State Board of Accountancy in licensing accountantsSelecting a business attorney and understanding fee structuresIdaho State Bar Lawyer Referral Service as a resource for finding attorneysSelecting an insurance agent and questions to ask when shopping for coverageCriteria for selecting a bank to support small business needsTypes of financial products and services offered by different banking institutions
Contractor's Business and Law Reference Manual Section 3 2 Q · 2%
Types of business organizations available in IdahoSole proprietorship and general partnership characteristics and liabilityLimited liability partnership (LLP) formation and liability protectionsLimited partnership (LP) structure, roles of general vs. limited partners, and filing requirementsLimited liability company (LLC) formation, naming requirements, and registration with Secretary of StateCorporation types (S Corp, C Corp, Professional Service Corporation) and their tax and liability distinctionsFiling requirements for foreign (out-of-state) business entities operating in IdahoSecurities regulations and role of Idaho Department of Finance and SEC
Contractor's Business and Law Reference Manual Section 4 2 Q · 2%
DOPL mission and purposeRegulatory boards under DOPLWho is required to obtain a license in IdahoConsequences of working unlicensedLicense qualification requirementsLicense application process and submission requirementsNon-refundable fees for licensureDOPL contact information and application resources
Contractor's Business and Law Reference Manual Section 5 20 Q · 20%
Bookkeeping process and financial statements (balance sheet, income statement, cash flow statement)Cash vs. accrual accounting methods and GAAP complianceFinancial ratios (liquidity, efficiency, leverage, and profitability ratios)Cash management and cash flow analysisProject accounting methods (completed contract vs. percentage of completion)Depreciation methods (straight-line, MACRS, and IRS Section 179 deduction)Equipment acquisition options (leasing, renting, and purchasing)Periodic bookkeeping tasks and recordkeeping responsibilities (daily, weekly, monthly, quarterly, annually)
Contractor's Business and Law Reference Manual Section 6 20 Q · 20%
Federal anti-discrimination laws (ADEA, ADA, Title VII, EPA, GINA, Pregnancy Discrimination Act) — employer obligations and employee thresholdsReasonable accommodation and undue hardship under ADA and Title VII religious discrimination provisionsFair Labor Standards Act — minimum wage, overtime pay requirements, and exempt employee classificationsFamily and Medical Leave Act — eligible employee entitlements, covered employer size, and qualifying leave reasonsIdaho-specific employment laws — minimum wage, wage payment deadlines, new hire reporting, and recordkeeping requirementsFederal contractor labor laws — Davis-Bacon Act, Service Contract Act, Walsh-Healey Act, Copeland Anti-Kickback Act, and prevailing wage requirementsEmployee Polygraph Protection Act and Consumer Credit Protection Act — employer prohibitions and wage garnishment limitsRequired workplace posting obligations — which posters are required, which employers must post, and associated penalties
Contractor's Business and Law Reference Manual Section 7 20 Q · 20%
Types of contractor insurance coverage and their purposesWorkers' compensation insurance requirements and exemptions in IdahoUnemployment insurance employer liability and experience ratingSurety bonds: bid bonds, performance bonds, and payment bondsIndependent contractor classification criteria for UI tax exemptionReportable and non-reportable wages for unemployment insuranceUnemployment insurance tax filing deadlines and penaltiesThe Miller Act requirements for federal public works projects
Contractor's Business and Law Reference Manual Section 8 7 Q · 7%
Types of bids: open (hard) bids vs. closed bids in public worksBid decision criteria: work scope, qualifications, schedule, cost, job site, and riskEstimation methods: conceptual, preliminary, and detailed estimatesDetailed estimate components: quantity survey/takeoff, quantity summary, and pricing stepsLabor, materials, and equipment pricing in estimatesGeneral overhead vs. project overhead costs and percentage calculationsContingency, allowances, and profit mark-up in the summary totalPublic works bidding requirements: advertising, licensing, and bid procedures in Idaho
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.)Idaho statute on retention proceeds in private construction contracts (Idaho Code 29-115)Statute of Frauds requirements for written agreements (Idaho Code 9-505)Common and optional parts of a construction contractBreach of contract definition and remediesChange orders and scope-of-work modifications
Contractor's Business and Law Reference Manual Section 10 10 Q · 10%
Five phases of project management (initiation, planning, executing, monitoring/controlling, closing)Critical Path Method (CPM) components and calculationsGantt chart interpretation and use in project schedulingScheduling concepts including float/slack time, earliest and latest start dates, and contingency timeProject planning elements including scope, work breakdown structure, and resource estimationCost control procedures including variance detection, CSI cost codes, and inventory controlProject staffing roles and responsibilities (owner's representative, CM/PM, superintendent, foreman, expediter)Quality control and safety during construction including conformance to design specifications
Contractor's Business and Law Reference Manual Section 11 5 Q · 5%
OSHA recordkeeping requirements and forms (Form 300, Form 300A, Form 301)Employer reporting obligations for fatalities and hospitalizationsWorkplace poster requirements and penalties for non-complianceRecordable vs. non-recordable work-related injuries and illnessesSmall employer and low-hazard industry exemptions from recordkeepingOSHA cooperative programs (VPP, SHARP, OSHA Challenge, Alliance, Strategic Partnership)OSHA consultation services for small businessesFinancial benefits of workplace safety and health programs
Contractor's Business and Law Reference Manual Section 12 1 Q · 1%
Income tax filing requirements by business entity type (sole proprietor, partnership, corporation, LLC)Idaho sales and use tax obligations for contractors as consumers of materialsIndependent contractor vs. employee classification using the right-to-control testEmployee hiring tax requirements (EIN, W-4, I-9, withholding, FICA, FUTA)Contractor/retailer dual-role sales tax accounting and recordkeepingSales tax exemptions available to contractors (out-of-state jobs, agricultural irrigation, Indian reservation)Property taxes on real and personal business propertyTax recordkeeping requirements and periods of limitations
Contractor's Business and Law Reference Manual Section 13 2 Q · 2%
Who qualifies for mechanic's and materialmen's lien rights under Idaho Title 45Filing requirements and deadlines for lien claims (90-day rule, county recorder, required contents)Priority and ranking of lien classes when proceeds are insufficientDuration of liens and enforcement deadlines (6-month filing, 5-year judgment lien)Release of mechanic's lien by posting surety bond (petition process, bond form, hearing)General contractor disclosure requirements for residential property contracts over $2,000Lien claims against multiple buildings owned by the same personContractor and subcontractor recovery rights and deduction of subcontractor debts

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 (not GAAP compliant and not permitted for corporations with average gross receipts exceeding $5 million).

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 full day) with no early-return fee and maintenance handled by the rental company, while leasing is a longer-term contract.

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

The quick ratio excludes inventories from current assets before dividing by current liabilities, making it a more conservative liquidity measure than the current ratio.

Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Liquidity Ratios
Named-Peril Builder's Risk InsurancevsAll-Risk Builder's Risk Insurance

Named-peril coverage protects only against losses from specifically listed perils, while all-risk is the more common and broader coverage.

Section 7: Insurance – Builders Risk bullet, Page 65
Lump Sum ContractvsUnit Price Contract

A lump sum contract covers the entire project as one total fixed price, 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 revenue and expenses each accounting period based on work done, better matching revenues to expenses, while completed contract defers recognition until the project is finished.

Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Percentage of Completion Method
Balance SheetvsIncome Statement

A balance sheet shows 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
General Partner (Limited Partnership)vsLimited Partner (Limited Partnership)

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
Private Sector BiddingvsPublic Works Bidding

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

Section 8: Estimating & Bidding, Bidding section, Page 79
Independent ContractorvsEmployee (Idaho UI Tax)

An independent contractor must be free from the employer's direction and control over the manner, method, and mode of work; if the employer directs specific work methods, the worker is not an independent contractor for Idaho unemployment insurance purposes.

Contractor's Business and Law Reference Manual, Section 7: Insurance — Independent Contractor
Experience Rate EmployervsCost Reimbursement Employer (Idaho UI)

Standard covered employers are assigned an experience rate for Idaho UI contributions, while governmental units and Section 501(c)(3) nonprofits may elect to directly reimburse the Idaho Employment Security Fund for actual benefit costs instead.

Contractor's Business and Law Reference Manual, Section 7: Insurance — Cost Reimbursement Employers
Design/Planning PhasevsConstruction Phase

The most important quality decisions—component configurations, material specifications, and functional performance—are made during the design and planning stages, not during construction.

Section 10: Project Management in Construction — Quality Control and Safety during Construction (Page 97)

Key Terms

Idaho Independent Contractor Control Test Contractor's Business and Law Reference Manual, Section 7: Insurance — Independent Contractor
Under Idaho UI tax rules, a worker is an independent contractor only if free from the employer's direction and control over the manner, method, and mode of performing work, both in contract and in fact; the method of payment alone does not determine status.
Idaho Employment Security Fund – Cost Reimbursement Election Contractor's Business and Law Reference Manual, Section 7: Insurance — Cost Reimbursement Employers
Governmental units and Section 501(c)(3) nonprofits covered under Idaho law may elect to reimburse the Idaho Employment Security Fund directly for benefit costs as an alternative to being assigned an experience rate.
Idaho UI Exempt Wage Recordkeeping 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 apart from covered employment; failure to do so requires reporting and paying UI tax on all wages including exempt wages.
Certificate of Assumed Business Name (Idaho) Division of Occupational & Professional Licenses Contractor's Business and Law Reference Manual (Idaho), Page 16
A general partnership that does not operate under the full legal names of all its owners must file a Certificate of Assumed Business Name with the Idaho Secretary of State.
Foreign LLC Registration (Idaho) Division of Occupational & Professional Licenses Contractor's Business and Law Reference Manual (Idaho), Page 17
An LLC organized in another state that wishes to operate in Idaho must submit an original signed Application for Registration as a Foreign Limited Liability Company plus a duplicate copy to the Idaho Secretary of State.
Professional Service Corporation Name Requirements (Idaho) Division of Occupational & Professional Licenses Contractor's Business and Law Reference Manual (Idaho), Page 19
An Idaho Professional Service Corporation's name must end with 'Chartered,' 'Professional Association,' 'Professional Corporation,' or the abbreviations 'PA,' 'PC,' or 'Chtd.'
Idaho Stock/Public Offering Notification Division of Occupational & Professional Licenses Contractor's Business and Law Reference Manual (Idaho), Page 18
If an Idaho company wishes to issue stock or raise money from the public, it must typically notify the Idaho Department of Finance and the U.S. Securities and Exchange Commission.
Balance Sheet Equation Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance
The fundamental accounting equation underlying a balance sheet is: Assets = Liabilities + Equity, meaning total assets must equal total liabilities plus net worth.
Percentage of Completion Formula Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Percentage of Completion Method
Cumulative revenue equals (cost incurred to date ÷ total estimated cost) × contract price; this method records a portion of contract revenue each accounting period.
Posting Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Bookkeeping process
Posting is the bookkeeping process of transferring totaled journal entries to the general ledger at the end of an accounting period.
Trial Balance Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — Bookkeeping process
A trial balance is the bookkeeping step of totaling all debit balances and credit balances to confirm that total debits equal total credits.
Change Order Division of Occupational & Professional Licenses Contractor's Business and Law Reference Manual (Idaho), Page 85-86
A change order is a formal document completed when changes in the work occur that differ from the original contract, used to protect both parties when additional or altered scope is requested.
Engagement Letter Division of Occupational & Professional Licenses Contractor's Business and Law Reference Manual (Idaho), Page 13
An engagement letter is a document signed by an accountant and client before work begins that spells out fees, scope of work, and other details to avoid misunderstandings.
IRS Section 179 Deduction (2014) Contractor's Business and Law Reference Manual, Section 5: Accounting & Finance — IRS Section 179 Deduction
Under IRS Section 179 as referenced in the manual, the 2014 deduction limit for qualifying equipment purchases is $500,000, with a $2 million cap on total equipment purchases.

Formulas to Know

Current RatioCurrent Assets ÷ Current Liabilities
Quick Ratio (Acid-Test)(Current Assets − Inventories) ÷ Current Liabilities
Balance Sheet EquationAssets = Liabilities + Equity
Percentage of Completion – Cumulative Revenue(Cost Incurred to Date ÷ Total Estimated Cost) × Contract Price
Cash FlowCash Receipts − Cash Payments (over a given period)
Interest Coverage RatioEBIT ÷ Interest Expense [caution: ≤1.5 indicates questionable ability to meet interest]
Working Capital Ratio (healthy range)Current Assets ÷ Current Liabilities [target: 1.2 – 2.0]
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