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1. The cost of goods sold is equal to cost of goods available
A. plus cost of ending inventory.
B. divided by cost of ending inventory.
C. multiplied by cost of ending inventory.
D. minus cost of ending inventory.
2. Best Buy has a warehouse with a market value of $5,000,000. The property in Best Buy’s area is
assessed at 40% of the commercial value. The tax rate is $105.10 per $1,000 assessed value. What does
Best Buy pay in property tax?
3. The range of 79, 83, 86, 87, 94, 98, 100, 101, and 105 is
4. FIFO does not assume which of the following?
A. Cost flow tends to follow physical flow
B. Sell the old inventory first
C. Sell the new inventory first
D. Recent cost assigned to inventory not sold
5. Assessed valuation is equal to the assessment rate
A. multiplied by the book value.
B. multiplied by the market value.
C. divided by the market value.
D. plus the market value.
6. Bonds are usually in denominations of
7. A premium insurance could be lower than someone else’s if the building
A. is made of wood.
B. is close to a fire hydrant.
C. is a store containing flammable goods.
D. has a roof that’s not fire resistant.
8. In the community of Chesterfield, the market value of an average home is $180,000. The assessment
rate is 35%. What is the assessed value?
9. Inventory turnover at retail is equal to net sales divided by the
A. beginning inventory at retail.
B. average inventory at retail.
C. average inventory at cost.
D. beginning inventory at cost.
10. Which one of the following statements is true of stockbrokers?
A. They don’t act as middlemen.
B. They can’t trade stock.
C. They charge a commission and selling.
D. They’re always correct in all their stock recommendations.
11. The price-earnings ratio is calculated by the closing price per share of stock divided by the
A. net change.
B. annual earnings per share.
C. dividend per year.
D. quarterly earnings per share.
12. Hector Rameriz received three A’s and one B in his college courses. What is his grade point average?
Assume each course is three credits and use the following grade conversion scale:
A = 4
B = 3
C = 2
D = 1
13. Becky bought a new Apple computer for $1,205.00. The purchase price included a 6% sales tax. What
is the actual selling price of the computer?
14. With beginning inventory at cost of $9,000, ending inventory at cost of $7,000, net sales of $51,000,
and cost of goods sold of $46,000, the inventory turnover at cost to the nearest hundredth is
15. What is the range of 17, 24, 24, 27, 29, 31, and 36?
16. TOX bond 7.55 yields 11%. The bond traded at a low of 71.25 and closed today at 71.625 + .75.
What was the closing price yesterday?
17. Of the following choices, excise tax is not applied to
A. distilled spirits.
18. Bill Blum insured his hardware store with a fire insurance policy for $88,000 at a cost of $.84 per
$100. Ten months later his insurance company canceled his policy as a result of failure to correct a fire
hazard. What is the cost of the policy to Bill?
19. Ben’s office building with $200,000 value has a rating area of 1 with a building class of B. The contents
are valued at $90,000. Using the tables in the Business Math Handbook that accompanies the course
textbook, determine the total annual premium .
20. Bill Jones bought a fishing rod that sells for $70.00 subject to a 6% sales tax and an excise tax of 10%.
What is the total amount Bill paid rod?
21. What is the range of 22, 22, 27, 29, 30, 34, and 38?
22. Which one of the following builds up no cash value?
B. Universal life
End of exam
D. 20-payment life
23. What information is not needed to calculate inventory valuation by the retail method?
A. Cost of net purchases at cost and retail
B. Beginning inventory at cost and retail
C. Net sales at cost
D. Net sales at retail
24. In the retail method, the ending inventory at cost is calculated by multiplying the cost ratio by the
A. cost of goods available .
B. net sales month.
C. ending inventory at retail.
D. beginning inventory at retail.
25. Howard Hane had taken out a $130,000 fire insurance policy new restaurant at a rate of $.82
per $100. Nine months later, Howard canceled the policy and decided to move his store to a new location.
Using the tables in the Business Math Handbook that accompanies the course textbook, determine what is
Howard’s cost of the premium?