The contract balance is $22,600. Approved credits total $1,750. What adjusted balance remains?
Correct Answer
B) $20,850.
The adjusted balance is $22,600 - $1,750 = $20,850.
Why This Is the Correct Answer
The adjusted balance is $22,600 - $1,750 = $20,850.
Why the Other Options Are Wrong
Option A: $18,850.
$18,850. is below the supported result for final balance calculation; it likely uses the wrong base, period, or account bucket.
Option C: $22,600.
$22,600. is above the supported result for final balance calculation; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $24,350.
$24,350. is above the supported result for final balance calculation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Final Balance drawer for Preparing Billing: label adjusted before counting dollars.
Reference Hint
Study anchor (closed-book): memorize Final balance calculation from CSLB 2026 Law Book; CSLB Home Improvement Contracts / Business and Professions Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.
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