An owner deletes a $2,850 appliance line and adds a $1,975 lighting line. What is the net adjustment?
Correct Answer
C) $875 credit.
The deleted amount exceeds the addition by $875, so the net adjustment is a $875 credit.
Why This Is the Correct Answer
The deleted amount exceeds the addition by $875, so the net adjustment is a $875 credit.
Why the Other Options Are Wrong
Option A: $1,975 credit.
$1,975 credit reports the $1,975 lighting line alone instead of subtracting it from the $2,850 appliance line. The correct calculation is 2,850 - 1,975 = 875 credit.
Option B: $4,825 credit.
$4,825 credit adds the $1,975 lighting line instead of subtracting it. The correct calculation is 2,850 - 1,975 = 875 credit.
Option D: $2,850 credit.
$2,850 credit leaves out the $1,975 lighting line. The correct calculation is 2,850 - 1,975 = 875 credit.
Reference Hint
Study anchor (closed-book): memorize Net change calculation from CSLB 2026 Law Book; CSLB Home Improvement Contracts / B&P Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.
Independent practice; verify any reference hint against the edition and category permitted for your booking. Official exam and reference-list sources →
More Law & Business Questions
A contractor pays workers through a payment app but does not issue itemized pay statements. What is missing?
Apply California’s standard overtime rules, with no alternative-workweek or other exception. A nonexempt worker at a regular rate of $36 per hour works 15 hours in one day. What is the day's gross pay, ignoring weekly overtime?
A supplier delivers special-order windows to the site, but the contract does not list when material payments are due. What should be checked?
A site checklist requires 31 separate SDS records, one for each listed product. It contains 27 valid records corresponding to 27 different listed products, with no duplicates or shared SDS entries. How many required records are missing?
In the bathroom addition file, cash is $28,000, receivables are $44,000, inventory is $16,000, and current liabilities are $60,000. What is the quick ratio?
A worker requests their own payroll records, but the company says only managers may see them. What should be reviewed?
Special-order cabinets are stored at the supplier, but the contract only pays for materials delivered to the job. What should be checked?
A contractor is unsure whether a publicly funded building upgrade is public work. What is the best first step?
A contractor's workers' compensation certificate lists the policy number but omits effective and expiration dates. What is the problem?
A jobsite stores flammable liquid next to ignition sources and exits. What is the best correction?
People Also Study
Related Study Resources
Previous Question
A contractor damages the owner's hardwood floor while moving equipment. Which policy type would the owner most likely ask about first?
Next Question
For this calendar-counting exercise, an employee makes a payroll-record request on June 10. Exclude June 10, count 21 calendar days, and assume no deadline adjustment applies. What date ends that maximum period?