EN-M2 : Admin 2 ( PRACTICE EXAMS 1 )

1- Who is affected by CNESST?

A Quebec resident, who is working for a business located in Ontario
A person who lives in Quebec, and who is working for an American company
A person who lives in Ontario, and who works for a company located in Quebec
A person who works in Manitoba, and who has a head office in Montreal.

2- The collective agreements in the construction industry are negotiated between the employers’ associations and the unions. In the answers below, which ones are common clauses negotiated by the employers’ association (AECQ)?

1- Union security

2- Basic employee benefits

3- Hourly rates by trade

4- Grievance-settlement procedures

None
1,2 and 3
1,2 and 4
1,2,3 and 4

3- If a legal person builds a house with the intention of selling it, what type of license does he need?

He doesn't need a license
He needs an owner-builder’s license
He needs a general contractor's license

4- Which law rules the sole proprietorship business in Quebec?

Building act
Law on companies
Law on legal publicity of business
Civil code

5- Who must request a CCQ card as an apprentice, when an employer guarantees 150 hours?

The employer
The employee
The union
The RBQ

6- To avoid waiting for the opening of the labor pools, it is possible to directly get a competency card with a diploma.

What type of diploma is required?

Vocational training diploma (DEP)
Bachelor’s degree in Construction
Cegep diploma
Master’s in administration

7- The account of the administrator’s salaries is an element of:

Liabilities
Assets
Operational expenses
Shareholders’ equity

8- On the balance sheet, the retained earnings must be entered under:

Shareholders’ equity
The current assets
The fixed assets
None of the above

9- A basic equation (basic accounting equation) links the assets of a company, its liabilities and its shareholders’ equity.

In this equation, the assets have to correspond to:

Liabilities – Shareholders’ equity
Shareholders’ equity + Retained earnings
Revenues – Expenses
Liabilities + Shareholders’ equity

10- The cash on hand can include a few elements. In the following list, which ones are included in the cash on hand?

1. Cash loan made to an individual

2. Money in the bank account

3. Petty cash money

4. Credit line used

2 and 4
2,3 and 4
1,2 and 3
2 and 3

11- To increase his/her competitive advantage, a manager can:

Reduce prices
Improve service quality
Reduce production costs
All of the above

12- What effect will have the purchase of a hydraulic platform paid in cash?

Decrease the cash on hand and the retained earnings
Decrease the cash on hand and increase the immobilizations
Decrease the cash on hand and increase the administration fees
Decrease the cash on hand and increase the long-term liabilities

13- Put these accounts in order:

1. Sales accounts

2. Assets accounts

3. Expense accounts

4. Liabilities

5. Shareholders’ equity

3, 5, 4, 2 and 1
1, 2, 3, 4 and 5
1, 2, 3, 5 and 4
2, 4, 5, 1 and 3

14- An owner inject $10,000 into his company as a loan, this will have the effect of :

1. Increasing the assets

2. Reducing the assets

3. Increasing the liabilities

4. Reducing the liabilities

5. Increasing the shareholder equity

6. Reducing the shareholder equity

1 and 6
1 and 5
1 and 3
4 and 6

15- The purchase of a trailer with a line of credit from a bank will have the following consequences:

1. Increase the assets

2. Reduce the assets

3. Increase the liabilities

4. Reduce the liabilities

5. Increase the shareholder equity

6. Reduce the shareholder equity

1 and 5
3 and 5
1 and 3
1 and 6

16- A withdrawal of 5000$ made by the owner of the company will have the following consequences:

1. Increase the assets

2. Reduce the assets

3. Increase the liabilities

4. Reduce the liabilities

5. Increase the shareholder equity

6. Reduce the shareholder equity

2 and 3
2 and 6
2 and 5
3 and 4

17- Put in order those four different management tasks:

1. Organize

2. Plan

3. Direct

4. Control

2, 1, 3 and 4
4, 3, 2 and 1
1, 2, 3 and 4
3, 1, 2 and 4

18- The payment by a client of a sale made on credit will:

Increase the assets
Reduce the assets
Reduce the liabilities
None of the above

19- Many approaches can be used by a manager when leading a business. The system analysis is one of them.

In this approach, the manager has to take into consideration:

The internal and external context of the business
The social context of the business
The financial context of the business
The macroeconomic context of the business

20- If the total of your sales is 1 000 000$ per year, you will have to do your GST and QST remittances:

Monthly
Annually
Monthly, quarterly or annually
Monthly or quarterly

21- In the accounting records, the entries are in:

Alphabetical order
Chronological order
In increasing order of the account numbers
None of the above

22- Revenu Québec and Revenu Canada limit the tax reimbursement (GST and QST) on the representation expenses that are incurred, for example, when inviting a client for a

business lunch. What percentage can be claimed?

25%
36%
50%
75%

23- The assets of the balance sheet are registered:

At their purchase price
At their market value
At their replacement value
At their purchase value less the normal usage depreciation

24- You do masonry work for a client and give him an invoice for 12 000$ for the whole work done.

Your client gives you right away a 6 000$ cheque and promises to pay you the rest in a few weeks.

How will this transpire in your financial statements on the Revenues and Accounts receivables?

Sales : +12 000$ ; Accounts receivables: +12 000$
Sales : +6 000$ ; Accounts receivables: +12 000$
Sales : +12 000$ ; Accounts receivables: +6 000$
Sales : +6 000$ ; Accounts receivables: +6 000$

25- Taking a bank loan will have the following consequence:

1. Increase the assets

2. Reduce the assets

3. Increase the liabilities

4. Reduce the liabilities

5. Increase the shareholders’ equity

6. Reduce the shareholders’ equity

1 and 5
3 and 5
1 and 4
1 and 3

26- A raise of the mortgage rates would have the following consequence:

Increase the services offer
Increase the services demand
Reduce the services offer
Reduce the service demand

27- The salaries for the Christmas and New Year’s Holidays are given to workers, subject to the work relation convention in the construction industry, by:

The contractor
The contractor and the Commission de la construction du Québec
The Commission de la construction du Québec
None of the above

28- In what section of a financial statement can you find the amortization of a trailer?

Of the financial expenses
Of the long-term liabilities
Of the operational expenses
Of the costs or goods sold

29- The cash on hand is an account of:

The incomes
The liabilities
The shareholders’ equity
The assets

30- Which of these elements must be included in the business plan?

1. The marketing plan

2. The delivery cover

3. The forecasted financial statements

4. The summary account

5. The accounting system

6. The cycle of the « PODC »

7. The legal form

8. The organization chart

1, 3, 4, 7 and 8
2, 3, 4, 7 and 8
1, 2, 3, 5 and 7
2, 3, 5, 7 and 8

31- When buying 8000$ worth of material, you pay 2000$ immediately and ask the supplier to put the balance to your payable account with him/her.

This transaction will have the following consequence:

Increase the purchase account of 8000$ and account payable of 6000$
Increase the purchase account of 2000$ and the suppliers’ account of 8000$
Increase the purchase accounts of 2 000$ and the account payable 6000$
Increase the purchase account of 6000$ and the suppliers’ account of 6000$

32- Which element of the business plan will have to be revised quickly after a raise of the mortgage rate?

The organization chart
The marketing plan
The summary account
Financial statement

33- Within the following reports and remittances, which must be given on the last day of the month at the latest, following the covered period?

Deduction at source payable by the workers
Reports and remittances of the GST and the QST
The payment of the CNESST contribution
Reports and remittance to the CCQ

34- Within the following contributions, which must be deducted at source from the income of the workers subject to the work relation convention in the construction industry?

1. Quebec pension plan

2. Training funds

3. Employment insurance

4. Income tax

5. Health service funds

6. CCQ Contribution

7. Union contributions

1, 2, 3, 4 and 5
1, 2, 3, 6 and 7
1, 3, 4, 6 and 7
1, 2, 3, 4,5 and 6

35- Which of the following contributions to public organizations include contributions from employers?

1. Contributions to the CNESST

2. Health services funds

3. Union contributions

4. Employment insurance

5. Sector contribution

6. Income tax deducted at source

1, 2, 4 and 5
5, 4, 2 and 6
1, 2, 3, 4 and 5
1, 2, 4, 5 and 6

36- Which of these elements of the business plan is useful to quickly catch the attention of a creditor?

Sales and marketing plan
Human resource plan
The summary
Financial statements

37- The shareholders of a company are owners of:

Shares of the company
Assets of the company
The company and its assets
Fixed assets

38- The responsibility of the associates of a company is dependant on the legal structure of said company.

In the case of a general partnership business (SENC), which statement explains it best?

The responsibility is limited only to the initial cash investment made in the company.
The responsibility is unlimited and joint between all associates.
The responsibility is limited only to the assets in the company.
The responsibility is unlimited and joint between all creditors in the company.

39- Which organization has the mandate to register companies in Quebec?

Revenu Québec
The Régie du bâtiment du Québec (RBQ)
The general inspector of financial institution
The Registraire des entreprises du Québec (REQ)

40- The owner of a commercial business who wants to increase himself/herself the surface of his/her building must get:

A general contractor’s licence
An owner-builder licence
A commercial licence
A licence in public buildings

41- What is the objective of the Building Act?

Issuing construction permits
Issuing contractor’s licence
Ensuring public safety and quality of work
Issuing certificates of qualification

42- What is a sale contract?

A contract from which a contractor is legally liable towards another person, the client, to carry on a material job.
A contract from which a party transfers the property of an asset to another party, in exchange of nothing else than a determined amount of money.
A contract from which an individual acquires, from a merchant, the ownership of an asset for personal or domestic usage.
None of the above

43- To keep his/her right to register a legal mortgage, the specialized contractor must produce a written contract denunciation to the owners of the building

30 days from the end of the work and include the price of the contract
60 days from the end of the work and include the price of the contract
Before the beginning of the work, and include the price of the contract
Before the beginning of the work

44- The completion of a job corresponds to the date at which:

The job is completed, as a whole, with the exception of seasonal works
The job is ready for the purpose it was intended
The balance is paid by the owner
The job is finished, completely

45- An owner signs a contract on a Monday, with a contractor, to have the exterior siding of his main house changed. The work begins the next day. If the owner cancels the contract on the Friday at 5 o’clock, what will be the payable amount to the contractor according to Consumer Protection Association?

The client must pay for the work that was done
The client must pay for material only
The client must pay for labor
The client doesn’t have to pay anything

46- The client has the right to keep a part of the payment if the job:

Was not completed and needed modifications
Without conditions
According to some conditions
With conditions and if the contractor can’t offer enough guaranties

47- What is the ratio journeyman / apprentice for the electrician trade in the residential sector?

1-1
3-1
4-1
5-1

48- How is defined the word « construction » according to the law on Work relations, professional training and labor management in the construction industry?

All documentation managed earlier, outside of the jobsite, to be used to start the work.
All the work done by a permanent paid employee working for a general contractor
A and B
None of the above

49- A client receives the work under conditions and gives the contractor a list of jobs to be completed, in that case, the client:

Can withhold a part of the payment, even if the contractor is liable to complete the work
Cannot withhold a part of the payment, even if the contractor is liable to complete the work
Cannot withhold a part of the payment, even if the contractor can offer enough guaranties
None of the above

50- What percentage of the surface of a building must be used as living space to be classified “residential”?

75% of the surface excluding all parking space
85% of the surface excluding all parking space
100% of the surface
100% of the surface excluding all parking space

51- The representative of the Commission de la construction du Québec (CCQ) can:

At any reasonable hour, access the jobsites of a professional employer
Have access to the building, the books and payrolls of a professional employer
Examine and photocopy the books and payrolls of a professional employer
All of the above

52- A real estate developer gives a general contractor the contract to build a new house for a client, this developer:

Will have the same responsibilities than a contractor, but will not be subject to guaranty obligations
Will not have the same responsibilities than a contractor, but will be subject to the guaranty obligations
Will have the same responsibilities than a contractor and will be subject to the guaranty obligations
Will not have the same responsibilities than a contractor and will not be subject to the guaranty obligations

53- What does financial planification mean?

1. A personal credit margin

2. A business potential evaluation

3. A good accountant

4. To determine the needs in capital assets (building, truck)

5. Choosing a bank

6. Finding the missing financial resources

1, 3 and 5
2, 3 and 5
3, 4 and 6
2, 4 and 6

54- To approve a credit, in the analysis process, the financial institution will take three (3) criteria in consideration. What are they?

1. Socio-political context

2. Economical context

3. Financial context

4. Planification of the retirement year

5. Analysis of periodic costs

6. Related Risks

1, 3 and 5
2, 3 and 5
2, 3 and 6
3, 4 and 6

55- Among the following accounts from the general ledger, the assets accounts are:

1. Merchandise purchases

2. Vehicle amortization

3. Cash on hand

4. Account receivable

5. Salaries

6. Fixed assets

7. Suppliers’ accounts

1, 2 and 3
3, 4 and 6
3, 5 and 6
4, 5 and 6

56- When you decide to give an employee a new position, what do you have to take in consideration?

1. Work conditions

2. Competency

3. Respect of superiors

4. Seniority

5. Tasks description

1, 2 and 4
2, 3 and 5
1, 4 and 5
3, 4 and 5

57- For the GST/QST purposes, you absolutely need:

1. Register the company

2. Charge the taxes

3. Calculate your credits and reimbursements of taxes

4. Issue your income tax reports

5. Offer discounts

6. Offer different payment methods

1, 2, 3 and 4
1, 2, 4 and 5
1, 2, 3 and 5
2, 3, 4 and 6

58- Among the following elements, which ones are required to foresee the sales figure?

1. The targeted clients

2. The knowledge of the competition

3. The average timeline required before product delivery

4. The potential market

5. The workers’ average income

6. The legal status of the business

2, 3 and 4
2, 4 and 5
3, 4 and 5
4, 5 and 6

59- To make a good promotion of your products, you will have to focus on:

The environment of the business
Marketing
Market segment, prices
Competition

60- What is the minimum number of yearly usage days of an industrial lawn tractor, in order to achieve a complete return on your investment?

– Purchase price: 15000$

– Daily rental cost: 250$

– Maintenance fees: 1200$ / year

– Interest on purchase loan: 8%

– 3 years linear depreciation

– New blades: 150$/ year

– Monthly mandatory cleaning: 55$

20 days
33 days
60 days
78 days

61-Among the following accounts from the general ledger, which are accounts from the income statement?

1. Cumulated vehicle amortization

2. Vehicle amortization

3. Employees’ salaries

4. Source deductions

5. Income

6. Dividends

7. Income taxes to pay

1, 3, and 5
3, 5 and 6
2, 3 and 5
3, 5 and 7

62- If the price of steel increases on the international stock market, which brings an increase in the price of vehicles, what will be the short-term impact for the sales revenues of Ford trucks?

Increase in revenues
Decrease in revenues
No change
Impossible to answer

63- Which of the following account is not an account found in the trial balance?

Net profit
Long-term assets
Share capital
Long-term loan

64- Among the following costs, which are fixed costs?

1. Amortization of vehicle

2. Purchase of materials

3. Subcontractors

4. Rent

5. Electricity and natural gas

6. Direct labor

1, 3 and 4
1, 4 and 5
1, 4 and 6
2, 3 and 6

65- If a company has in its balance sheet the following balances, what will be its working capital ratio?

1. Cash on hand: 15 000$

2. Credit line: 5 000$

3. Receivables: 20 000$

4. Payables: 5 000$

5. Vehicle: 7 500$

6. Accumulated vehicle depreciation: 5 000$

7. Debt on vehicle: 4 000$

8
6
2.7
3.5

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