Test 4 chapters 10 and 11

·         Question 1

	Jim Murphy borrowed $30,000 on 120-day fourteen percent note. Jim paid $5,000 toward the note on day 95. On day 105 he paid an additional $6,000. Using the U.S. Rule, Jim's adjusted balance after the first payment is:
	Answer: $26,108.33

·        Question 2

	Simple interest usually represents a loan of:
	Answer: 1 year or less

·         Question 3

	Given interest of $1,632 with principal of $16,000 for 306 days (ordinary interest), results in a rate of:
	Answer 12 percent

·         Question 4

	Jill Ley took out a loan to pay for her child's education for $60,000. The loan would be repaid at the end of 8 years in one payment with an interest of 6 percent. The total amount Jill has to pay back at the end of the loan is:
	Answer $88,800

·         Question 5

	The U.S. Rule:
	Answer Allows borrowers to receive interest credit.

·         Question 6

	At maturity, using the U.S. Rule the interest calculated from last partial payment is:
	Answer   Added to adjusted balance.

·         Question 7

	Joe Flynn visited his local bank to see how long it will take for $1,200 to amount to $2,100 at a simple interest rate of 7 percent. The time is: (Round time in years to nearest tenth)
	Answer 10.7 years ·         Question 8 Given interest of $11,900 at 6 percent for 50 days (ordinary interest), one can calculate the principal as:   Answer None of these ·         Question 9 Janet Home went to Citizen Bank. She borrowed $7,000 at a rate of 8 percent. The date of the loan was September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back interest on January 20:   Answer $189.78 ·         Question 10 Federal Reserve Banks as well as the Federal government like to calculate simple interest based on: Answer   Exact interest ·         Question 11 Interest on $5,255 at 12 percent for 30 days (use ordinary interest) is: Answer   $52.55 ·         Question 12 Christina Hercher borrowed $50,000 on a 90 day, eight percent note. Christina paid $3,000 toward the note on day 40. On day 60 she paid an additional $4,000. Using the U.S. Rule, Christina's adjusted balance after the first payment is: Answer   $47,444.44 ·         Question 13 A note dated August 18 and due on March 9 runs for exactly: Answer   203 days ·         Question 14 A $40,000 loan at 4 percent dated June 10 is due to be paid on October 11. The amount of interest is: (Assume ordinary interest)  Answer $546.67 ·         Question 15 Amount charged for use of bank's money is called: Answer Interest ·         Question 16 Interest is equal to: Answer  I=Prt Principal x rate x time ·         Question 17 Sandra Gloy borrowed $5,000 on a 120 day, 5 percent note. Sandra paid $500 toward the note on day 40. On day 90 she paid an additional $500. Using the U.S. Rule, her adjusted balance after the first payment is: Answer   $4,527.78 ·         Question 18 Joyce took out a loan for $21,900 at 12 percent on March 18, 2007, which will be due on January 9, 2008. Using ordinary interest, Joyce will pay back on Jan. 9 a total amount: Answer   $24,068.10 ·         Question 19 A note dated Dec. 13 and due July 5 runs for exactly Answer   204 ·         Question 20 Joan Roe borrowed $85,000 at a rate of 11 3/4 percent. The date of the loan was July 8. Joan is to repay the loan on Sept. 14. Assuming the loan is based on exact interest, the interest Joan will pay on Sept. 14 is: Answer   $1,860.68 ·         Question 21 If one discounts a non-interest-bearing note, all the following would be used except:  Answer Principal + Interest ·         Question 22 The maker of a promissory note: Answer   Issues the note ·         Question 23 Jill Jones borrowed $18,000 for 180 days from Sovereign Bank. The bank discounts the note at 8 percent. The effective interest rate to the nearest hundredth percent is: Answer 8.33 percent ·         Question 24 A $7,000, 4 percent, 120-day note, dated March 20, is discounted on July 15. Assuming a 3 percent discount rate, the bank discount is: Answer   $1.77 ·         Question 25 B.Blue discounts a 90-day note for $20,000 at 4 percent. The bank discount is: (Assume ordinary interest) Answer   $200

Test 3 on Chapters 7 & 8

Question 1
   
A bedroom set lists for $12,000 and carries a trade discount of 30 percent. Freight (FOB shipping point) of $150 is not part of list price. Calculate the delivered price of the bedroom set including the freight. Assume a cash discount of 2 percent:
           
  Answer: $8,382

      
Question 2
   
60 days from Nov. 19 is:
           
  Answer: Jan. 18
       


Question 3
   
The complement of 35 percent is:
           
  Answer: 65 percent

       




Question 4
   
The single equivalent discount rate of the trade discount 5/4/1 is:
           
  Answer: .09712

       





Question 5

Amount of trade discount equals:
           
  Answer: List price  trade discount rate

       



Question 6
   
An invoice dated March 6 with terms of 1/10, E.O.M. results in the end of the discount period on:
           
  Answer: April 10

       




Question 7
   
An invoice dated 5/19/XX received by Jones Supply indicated a balance of $17,000. This balance included a freight charge of $1,000. Terms of the bill were 5/10, 4/30, n/60. Assuming Jones pays off the bill on June 4 he pays:   
       
  Answer: None of these

       




Question 8
   
J.C. Penney of Boston sold office equipment for $12,000 to Lee's of San Diego. Terms of the sale are 3/10, n/30 F.O.B. Boston. J.C. Penney has agreed to prepay freight $300. Assuming Lee pays within the discount period, how much will they pay J.C. Penney?
           
  Answer: $11,940

       



Question 9
   
2/10, n/30 is an example of:
           
  Answer: Ordinary dating

       



Question 10
   
Amount of trade discount is represented by the:
           
  Answer: Portion

       



Question 11
   
Which month has 30 days?
           
  Answer: June

       



Question 12
   
The net price equivalent rate of 9/15/18 is:
           
  Answer: .63427

   




Question 13

A local Dot Dress Shop is selling a suit for $99. Due to changing styles the 1st markdown was 8% and second markdown 25 %. The suit still did not sell so a final markdown of 10% was taken. The sale price is currently:

  Answer: $61.48

       



Question 14
   
A local Dunkin Donuts makes blueberry muffins that cost $.69 each. Past experience shows that 15% of the muffins will spoil and have to be discarded. Assuming this donut shop wants a 30% markup based on cost and produces 200 muffins, each muffin should sell for:
           
  Answer: $1.06

       



Question 15
   
A wooden duck with a regular selling price of $125.99 is marked down to $79.99. The percent of markdown is:
           
  Answer: 36.51 percent

       




Question 16

Net income is calculated as:
           
  Answer: Net sales  costs  operating expenses




Question 17

Ski Market sells snow boards. Ski Market knows that the most people will pay for the snow boards is $129.99. Ski Market is convinced that they need a 45% markup based on cost. The most that Ski Market can pay to their supplier for the snow boards is:
           
  Answer: None of these

       



Question 18
   
Jay King, owner of a local Bed and Bath Store knows that his customers will only pay at most, $299 for a blow up bed. Assuming Jay wants a 40% markup on selling price, the most he could pay the manufacturer for the blow up bed is:
           
  Answer: $179.40



       
Question 19
   
Markdowns may be caused by:
           
  Answer: Style changes

       




Question 20
   
The markdown percent is calculated by:
           
  Answer: Amount of markdown divided by original selling price

       


Question 21
   
Red Jeans Inc. sells jeans that cost $16.55 for a selling price of $35.99. The percent of markup based on cost is:
           
  Answer: 117.46 percent



Question 22
   
Lester Co. produces toys kites. It has a fixed cost of $62,150. If the selling price per unit is $9.50 and the variable cost per unit is $6.25. The breakeven point is:

  Answer: None of these   




Question 23
   
Contribution margin is:
           
  Answer: Revenues minus variable cost



Question 24

An Apple IPod sells for $299, which is marked up 40% of the selling price. The cost of the IPod is:
           
  Answer: $179.40

               

Question 25
   
Jackie Smith, a customer of Roger Blank, will only pay $190 for a tennis racket. Assuming Roger works on a 60 percent markup on the selling price, the most Roger will pay the manufacturer is:

  Answer: $76

Test 2 on Chapters 4 & 9 multiple choice

Question 1
In the reconciliation process the unrecorded bank service charge is:

Answer: Deducted from checkbook balance

Question 2
Which of the following results in crediting the checkbook balance?

Answer:       
Interest earned

           
Question 3
The checkbook balance of Lester Co. is $922.55. The bank statement reveals a balance of $3,881.14. The bank statement showed interest earned of $77, a service charge of $38.22, along with a deposit in transit of $9,555.88. Outstanding checks totaled $6,142.88. The bookkeeper in further analyzing the bank statement noticed a collection of a note by bank for $6,815.00. Lester Co. forgot to deduct a check for $482.19 during the month. The reconciled balance is:

Answer:       
$7,294.14

           
Question 4   
Electronic funds transfer:

Answer:       
Does not use paper checks

           
Question 5
An unrecorded credit memo for collection of a note should be:
            
Answer:       
Added to checkbook balance

           
Question 6
 On December 31 the checkbook balance of Ray Co. was $5,420.95. The bank statement balance showed $5,102.88. Checks outstanding totaled $813.53. The statement did not show a deposit in transit of $1,102.95. Check charges were $15.88. The company earned interest income of $29.32 that was shown on the report. The bookkeeper forgot to record a check for $42.09. The reconciled balance is:

Answer:       
$5,392.30

           
Question 7
The bank statement of July 31 for Savon Co. showed a balance of $6,008.10 while the checkbook showed a balance of $1,900.40. The bookkeeper of Savon Co. noticed from the bank statement the bank had collected a note for $666.66. There was a deposit in transit made on July 1 for $1,100.10 along with the outstanding checks of $4,580.54. Check charges were $39.40. The reconciled balance is:
            
Answer:       
$2,527.66

           
Question 8   
The bank statement of Ali Co. indicated a current balance of $32,900.10. The current checkbook balance indicated a balance of $34,509.11. In the reconciliation process a deposit in transit for $6,821.11 was discovered. Check number 600 for $3,988.33 was outstanding. The statement also revealed a NSF of $110.11 along with interest earned by Ali of $1,333.88. The reconciled balance is:

Answer:       
$35,732.88

           
Question 9
The process of analyzing the differences between the bank statement balance and the checkbook balance is:

Answer:       
Bank reconciliation

           
Question 10   
Jane Co. checkbook currently has a balance of $295.10. The bank statement shows a balance of $205.10. The statement revealed interest income of $10.03 along with check charges of $2.95. Jane recorded a $200 check as $150. Deposits in transit were $402.80. Check numbers 85, 88 and 92 for $90.80, $108.10, and $156.82 were not returned with the statement. The reconciled balance is:

Answer:       
$252.18

           
Question 11
Outstanding checks:
   
Have not been received by bank for processing

           
Question 12
The beginning checkbook balance of Shelley Co. is $5,559.10. Her bank statement showed a bank balance of $7,888.44. The bookkeeper of Shelley Co. noticed a $111.10 deposit in transit along with check numbers 90 and 97 for $499.88 and $1,256.45 respectively as outstanding. The bank statement credited Shelley's account for $750.99 for a note collected. The bank statement revealed a check printing charge of $66.88. The reconciled balance is:
            
Answer:       
$6,243.21

           
Question 13
Ron Swift earned $1,500 last week. He is married, paid bi-weekly, and claims two exemptions. Using the percentage method (use tables in the handbook) his income tax is:
           
Answer:       
$106.04

           
Question 14
Social Security and Medicare tax:
            
Answer:       
Have different rates

           
Question 15
To date, Jay Ward has a cumulative earnings of $95,000. This week he is paid $3,000. The total amount of Social Security Tax for this week is: (Assume a rate of 6.2% on $97,500 for Social Security and 1.45% for Medicare).
           
Answer:       
$155.00

           
Question 16
The more allowance claimed on Form W-4 means:

Answer:       
Less money deducted for FIT

           
Question 17
Lana Powell has cumulative earnings of $97,400 at the end of September. In the 1st week in October she earns $2,000. The amount deducted for Social Security and Medicare from her check is: (Assume Social Security rate of 6.2% on $97,500 and Medicare of 1.45%).

Answer:       
$35.20

           
Question 18
Leo Corporation pays its employees on a graduated commission scale: 6 percent on 1st $40,000 sales; 7% on sales above $40,000 to $80,000; and 9 percent on sales greater than $80,000. Bernie Kaminsky had sales of $105,000. His commission is:
       
Answer:       
$7,450

           
Question 19
Lee Wong is a sales clerk at Sears. She is paid $8.00 per hour plus a commission of 4 percent on all sales. Assuming Lee works 39 hours and has sales of $4,000, her gross pay is:

Answer:       
$472

           
Question 20
Jill Hartman earns $750 per week plus 3 percent of sales in excess of $6,500. If Jill sells $25,000 in 1st week, her earnings are:

Answer:       
$1,305

           
Question 21
The taxable earnings column of a payroll register records:

Answer:       
what wages will be taxed.

           
Question 22  
Percentage method tables can show:
            
Answer:       
All of these

           
Question 23
Bill Burne's earnings are subject to deductions for Social Security, Medicare and FIT. To date his cumulative earnings is $97,400. This week Bill earns $1,200. Bill, who is married, is paid weekly and claims 3 exemptions. Assume Social Security rate is 6.2% on $97,500 and 1.45% for Medicare. His net pay for the week is: (use percentage table in handbook to calculate FIT)

Answer:       
$1,066.44

           
Question 24
If you are paid twice a month, you are being paid:

Answer:       
Semimonthly

           
Question 25
Jim Smith is a salesman who receives a $1,100 draw per week. He receives a 12 percent commission on all sales. Sales for Jim were $205,000 for the month. Assuming a 4-week month, Jim's commission after the draw is:

Answer:
$20,200

Test on Chapters 1,2,3,5, & 6

• Question 1

	Pete Hax rents a ski house in Vail for $1,800 per month for 6 months. Assuming Pete spends $12,955 for the total trip, how much was spent above the renting of the ski house?
	Correct Answer:    $2,155

• Question 2

	On Tuesday, Pizza Hut sold 60 plain pizzas at $5 each; 20 meatball pizzas at $8 each; 25 Sicilian pizzas at $9 each; and 33 large crust supremes at $10 each. What were the total dollar sales for Pizza Hut on Tuesday?
	Correct Answer:    $1,015

• Question 3

	Decision making process does not involve:
	Correct Answer:    Deciding worst method to solve it

• Question 4

	Adding 1,690 + 88 + 410 + 30 results in a sum of:
	Correct Answer:    2,218

• Question 5

	88,000 times 300 equals:
	Correct Answer:    26,400,000

• Question 6

	Lisa Wolf has 20 1/8 days of vacation per year at WalMart. To date she has taken 4 1/2 in January, 3 1/4 in February, and 4 1/8 days in March. How much more vacation time is Lisa entitled to?
	Correct Answer:    8 1/4

• Question 7

	Jane Ring cut a 6ft Subway sandwich into 1 ½ ft sandwiches. How many sandwiches can be cut from the 6 ft. sub?
	Correct Answer:    None of these

• Question 8

	A machine at Staples Xeroxes 12 ¼ pages per minute. If the machine runs 700 minutes, how many pages will be xeroxed?
	Correct Answer:    8,575

• Question 9

	At a local Subway, Jill Jones owns 1/4 of the company and Roger Moore 1/8. Bill Moore owns the rest. What part is owned by Bill?
	Correct Answer:    5/8

• Question 10

	The price of a baseball Ticket at Yankee Stadium increased by 2 1/4 over the last 3 years. If the original price of a ticket was $60, what is the new price of the ticket today?
	Correct Answer:    $135

• Question 11

	Melvin small typed 485 business letters. The cost of writing these letters was estimated to be $3,455.25. What was the average cost of a letter to nearest cent?
	Correct Answer:    $7.12

• Question 12

	The Weather Channel reported the normal snowfall is 138.44 inches for Lexington County. How much was the snowfall below normal?
	Correct Answer:    None of these

• Question 13

	Joyce went to Lowes to buy carpeting. She will need 88.4 square yards for downstairs, 15.1 sq. yards for halls, and 177.18 sq. yards for the upstairs bedrooms. She chose a commercial carpet, which costs $18.11 per sq. yard. Joyce ordered foam padding at $3.25 per sq. yard. The installers quoted Joyce a labor cost of $4.25 per sq. yard in installation. What will the total job cost Joyce?
	Correct Answer:    $7,188.21

• Question 14

	Jim sells college textbooks. To date Jim sold $141,002 worth of texts. His sales quota is $194,159. Tomorrow he expects to sell $15,005 worth of text to B College. His last stop will be Munroe College. What must he sell to them to meet his quota?
	Correct Answer:    $38,152

• Question 15

	Dave Adams bought season's tickets to the Boston Celtics. The cost was $1,300.11. The package included 30 home games. What is the average price of the tickets per game? Round to the nearest cent.
	Correct Answer:    $43.34

• Question 16

	A times C is represented by:
	Correct Answer:    AC

• Question 17

	C + 100 = 55; C equals:
	Correct Answer:    45

• Question 18

	Al Resse and Marci Rey received a total of $210,000 from a deceased relative's estate. They decided to put away $50,000 in a trust for their child and divide the remainder into 1/4 for Marci and 3/4 for Al. How much will Al receive?
	Correct Answer:    $120,000

• Question 19

	Belts cost $160 per carton and shoes cost $465 per carton. If an order comes in for a total of 88 cartons for $19,265, what was the number of cartons of belts? (Hint, Let S = Cartons of Shoes)
	Correct Answer:    71

• Question 20

	8G = 96; G equals:
	Correct Answer:   12

• Question 21

	In the percent increase or decrease problems, the portion is:
	Correct Answer:    Amount of increase or decrease

• Question 22

	750 is what percent of 900 (Round to nearest tenth of a percent).
	Correct Answer:    83.3 percent

• Question 23

	160 percent of 1,825 is? Rounded to nearest tenth:
	Correct Answer:    None of these

• Question 24

	Lee, manager of Lexington soccer team, was trying to figure the percent of games they lost this season. Their record was 30 wins and 10 losses. What percent of the soccer games did they lose?
	Correct Answer:    25%

• Question 25

	An LCO Flat Screen TV at Best Buy increased in price from $900 to $1,200. What was the percent of increase?
	Correct Answer:    33 1/3 percent