Question 1

The P in the formula I=PRT represents_____________

Accepted Answer

Principal

Answer

Proportion

Answer

Purchase

Answer

Product

Question 2

Cash Flow is

Accepted Answer

The amount of money that a company receives and pays out over a specific time period.

Answer

the  amount that the bank owes the company

Answer

the amount the company spent over the specific period of time

Answer

the amount the company owes to the bank

Question 3

What is Positive Cashflow?

Accepted Answer

Revenues > Expenses

Answer

Revenues + Exspenses

Answer

Revenues - Expenses

Answer

Expenses > Revenues

Question 4

What is Negative Cash FLow?

Accepted Answer

Expenses > Revenues

Answer

Revenues > Expenses

Answer

Revenues - Expenses

Answer

Expenses - Revenues

Question 5

Company A has total Revenues of $8,057, and the expenses of $6,026. Is the cash flow for Company A positive or negative

Accepted Answer

positive

Answer

equal

Answer

negative

Answer

Paris

Question 6

A full-fare ticket costs $1,220. A super-saver airfare costs $267. How much money the company saves by buying  1 super-save ticket? and 60 tickets?

Accepted Answer

$953 for 1 ticket/ $ 57,180 for 60 tickets

Answer

$593 for 1 ticket/ $ 87,510 for 60 tickets

Answer

$935 for 1 ticket/ $75,180 for 60 tickets

Answer

$395 for 1 ticket/ $51,780 for 60 tickets

Question 7

A Company pays _________ in interest if it borrows $2,000 for 4 years at 7% annual simple interest ( I=PRT)

Accepted Answer

$2,000 x .07 x 4 = $560

Answer

$2000 x .7 x 4 = $5,600

Answer

$2000 x .007 x 4= $56

Answer

$2000 x 7 x 4= $56,000

Question 8

A company's asset are valued at $500,000. If its line of credit is 75% of its assets, what is the most money that it can borrow? (total assets x line of credit= max amount can borrow)

Accepted Answer

$500,000 x  .75= $357,000

Answer

$500,000 / 75 = $6,666.67

Answer

$500,000 x 75 = $37,500,000

Answer

$500,000 x .075 = $37,500

Question 9

It costs a company about 2% of its annual payroll to process paychecks. if the annual payroll is $600,000, about how much does the company spend to process paychecks? Hint: (annual payroll x % given=?)

Accepted Answer

$600,000 x .02=$12,000

Answer

$600,000 x  .002= $1,200

Answer

$600,000 x 2 = $1,200,000

Answer

$600,000 x .2= $120,000

Question 10

A company buys the office equipment 18 software programs for $289 each or 10 for $2,459. What is the best price for this equipment?

Accepted Answer

10 for $2,459 is the best price

Answer

$2,459 each

Answer

$289 each

Answer

18 for $289 each

Question 11

What is Cost of Production?

Accepted Answer

The expense of manufacturing a production

Answer

The profit of manufacturing a production

Answer

The revenue of manufacturing a production

Question 12

If Fixed Cost is $10,000 and Variable Cost is $4,000. How much more Fixed Cost than  Variable Cost

Accepted Answer

$10,000 - $4,000 = $6,000

Answer

$10,000 + $4,000 = $14,000

Answer

$10,000 x $4,000= $40,000,000

Answer

$10,000 /$4,000 = $2.50

Question 13

A Company's Beginning Inventory for Jan, 2002 $6,400 and Ending Inventory $4,250. What is the Average Inventory? average inv = (beginning inv + ending inv)/ 2

Accepted Answer

($6,400+$4,250)/2 = $5325

Answer

($6,400+$4,250)/4=$$2,662.50

Answer

($6,400-$4,250)/2=$1,075

Answer

($6,400+$4,250)/3=$3,550

Question 14

What is Average Cost?

Accepted Answer

total cost / number of units

Answer

number of units x total cost

Answer

total cost x number of units

Answer

number of units/ total cost

Question 15

Subtract returns and allowances from ________ to calculate net sales

Accepted Answer

Gross Profit

Answer

sales

Answer

operating expenses

Answer

net income

Question 16

How do you calculate Inventory turnover rate?

Accepted Answer

cost of good sold/average inventory

Answer

average inv  x  cost of good sold

Answer

average inv - cost of good sold

Answer

average inv + cost of good sold

Question 17

Company Z has an average inventory of $35,900 and their cost of good sold is $172,320, what is the inventory turnover rate?

Accepted Answer

$172,320/$35,900=4.8

Answer

$172,320 - $35,900=$136,420

Answer

$172,320+$35,900=$208,220

Answer

$35,900/$172,320= .21

Question 18

In 2003, a company's sales revenue was $859,000 and its marketing expenses were $300,650. Marketing expenses are what percentage of total sales? (marketing exp/ sales revenue= _____%?

Accepted Answer

$300,650/$859,000=.35 or 35%

Answer

$859,000-$300,650= $558,350

Answer

$859,000/$300,650= 2.86 or 286%

Answer

$300,650+$859,000=$1,159,650

Question 19

What is Gross Profit?

Accepted Answer

Net sales - Cost of Good

Answer

Cost of Good Sold-Net Sales

Answer

Net Income+ Operating Expense

Answer

Net Sales+Cost of Good

Question 20

What is Net Income

Accepted Answer

Gross Profit-Operating Expenses

Answer

Gross Profit+Operating Expenses

Answer

Net Sales-Cost of Good Sold

Answer

Cost of Good-Net Sales

Question 21

A Company's annual income statement shows net sales of $788.293. The cost of goods sold is $192,041. The operating expenses are $184,509. What is the net income before tax?

Accepted Answer

$411,743

Answer

$780,761

Answer

$7,532

Answer

$$596,252

Question 22

In 2002, a company's gross profit was $92,000. In 2003, its gross profit was $125,500. What is the percent change in gross profit from 2002 to 2003?

Accepted Answer

36%

Answer

63%

Answer

16%

Answer

26%

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