10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The NV-CMS exam has 63 questions and runs 2 hours 6 minutes.
These 10 free NV-CMS questions are organized by exam domain, so you can see how each part of the Nevada Contractor Business and Law (CMS) Exam blueprint is tested. Reveal the answer and explanation under each question.
A Nevada homeowner hires an unlicensed person to perform a $900 carpentry repair. The quoted amount includes labor and materials, but the local building department requires a permit. The person argues that any job under $1,000 is exempt from contractor licensing. Which conclusion is correct?
Correct answer: C - The exemption does not apply because the work requires a building permit
A Nevada contractor holding only a B-2 Residential and Small Commercial license is invited to serve as prime contractor for a new four-story apartment building. The contractor plans to subcontract every specialty trade. What is the best licensing assessment?
Correct answer: A - The four-story project exceeds the B-2 height limit, regardless of subcontracting
A management qualifier leaves Silver State Builders LLC and forms Desert Ridge Builders LLC. Before Desert Ridge receives its own contractor license, the qualifier proposes bidding under Silver State's license number with that company's permission. Which statement governs?
Correct answer: D - The license belongs to the licensed entity; the new company may not use it
An estimator calculates $300,000 of direct cost and $60,000 of allocated overhead, for total cost of $360,000. Company policy targets a gross margin of exactly 20% of the selling price. Which bid amount produces the required margin?
Correct answer: B - $450,000, yielding $90,000 profit and a 20% gross margin
A public solicitation requires a signed bid form, a bid bond, and acknowledgment of two addenda. The low bidder submits all three correctly. Post-opening review then shows repeated failures to complete comparable projects and inadequate equipment for the schedule. How should the issue be characterized?
Correct answer: B - The bid appears responsive, but the bidder may be found nonresponsible
A Nevada material supplier was required to serve a Notice of Right to Lien but served it 50 days after first furnishing, rather than within 31 days. The supplier continued delivering after service. What lien coverage generally remains?
Correct answer: C - Materials or work furnished during the 31 days before service and thereafter until completion
A fixed-price contract is $900,000. Costs incurred to date are $300,000, the latest estimated total cost is $600,000, and billings to date are $520,000. Using the cost-to-cost method, how should the contractor report the billing position?
Correct answer: A - $70,000 overbilling, reported as a contract liability
A contractor's month-end current ratio is 1.62, while its quick ratio is 0.74 against an internal minimum of 1.00. The difference is primarily inventory and prepaid costs, and receivables are taking longer to collect than planned. Which interpretation is most useful to management?
Correct answer: D - Current assets exceed current liabilities, but the weak quick ratio and aging receivables signal cash-pressure risk
A fixed-price project has contract revenue of $1,200,000. The latest reliable estimate puts total project cost at $1,320,000, and the job is 35% complete. Under the anticipated-loss rule for construction contracts, how much of the expected loss should be recognized now?
Correct answer: C - $120,000, because the full anticipated contract loss is recognized immediately
At a growing contractor, one accounts-payable employee can create vendors, enter invoices, release ACH payments, and reconcile the bank account. Which redesign most directly reduces the risk of fictitious-vendor payments?
Correct answer: D - Separate vendor setup, payment approval, and bank reconciliation among independent employees
The NV-CMS exam also covers these domains. Drill them in the full free practice test:
The full bank has 1,020 more NV-CMS questions with explanations.
Continue in the free practice test →
View plans