CMS Practice Exam 2026 – Complete Test Prep for Contractor Management

When a contractor is caught diverting funds of $1,000 or less in the state of Nevada, they face several potential punishments as a result of this criminal offense. The correct answer encompasses all aspects of the penalties that apply.

First, being found guilty of a gross misdemeanor reflects the severity of the crime. In this context, a gross misdemeanor is more serious than a simple misdemeanor, indicating that the act of diverting funds is considered significant and unlawful behavior.

In addition to the classification of the crime, there are financial penalties involved. A fine ranging from $2,000 to $4,000 serves as a deterrent against future misconduct and emphasizes the seriousness with which the state treats the diversion of funds. This range of fines illustrates that the financial repercussions for such actions can be quite substantial.

Furthermore, imprisonment in the county jail for not more than one year highlights the potential loss of freedom that accompanies this offense. The combination of jail time, financial penalties, and a criminal record presents a strong disincentive for contractors to engage in fund diversion.

Overall, the correct choice of "All of the above" captures the comprehensive nature of the consequences that a contractor could face if convicted of diverting funds, making it a fitting answer to the