060238RR – Business and Finance Basics III and Statistics
1. Stocks are always quoted in
A. quarter lots.
B. percents.
C. decimals.
D. quarters of a dollar.
2.Which one of the following items is subject to sales tax in the District of Columbia?
A. Shampoo
B. Roast beef
C. Milk
D. Tomatoes
3. In terms of premium cost, the most expensive type of insurance is
A. term.
B. straight-life.
C. 20-payment life.
D. 20-year endowment.
4. With net sales of $40,000, beginning inventory at retail of $14,000, ending inventory at retail of $20,000, and cost of goods sold of $19,500, what’s the inventory turnover at retail rounded to the nearest hundredth?
A. 5.23
B. 3.25
C. 2.35
D. 5.15
5. Mia’s office building with a $300,000 value has a rating of 2 with a building classification of A. The contents in the building are valued at $120,000. Using the tables found in the textbook, the total annual premium for fire insurance is
A. $990.00.
B. $1,554.
C. $1,064.04.
D. $1,046.40.
6. The weighted-average method is best used for
A. grains only.
B. fuels only.
C. homogeneous products.
D. heterogeneous products.
7. Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00, 8 at $3.25, and 12 at $3.50. By the end of the year, 31 sets were sold. Using the LIFO method, the cost of ending inventory is
A. $3.50.
B. $28.00.
C. $12.00.
D. $21.00.
8. Dividends in arrears means that A. a specific amount of dividends hasn’t been paid. B. common stockholders must receive additional dividends not paid. C. common stockholders have been paid but not preferred stockholders. D. no past dividends have been omitted. 9. The one named in the policy to receive the insurance proceeds in case of the death of the one taking out the policy is the
A. insured.
B. insurer.
C. both insured and beneficiary.
D. beneficiary.
10. What’s the weighted mean frequency for the following car sales? 2 sold at $25,090, 3 sold at $20,000, 1 sold at $21,475, and 1 sold at $39,638
A. $21,241
B. $24,000
C. $24,740
D. $24,470
11. Huck’s Fishing Shop’s beginning inventory is $70,000, and ending inventory is $36,500. What was Huck’s average inventory?
A. $35,000
B. $53,250
C. $48,000
D. $18,250
12. The cost ratio in the retail method is found by the cost of goods available for sale at cost divided by the
A. net purchases at cost.
B. cost of goods available for sale at retail.
C. ending inventory at retail.
D. net sales.
13. Suppose Department X is 8,000 square feet, Department Y is 5,000 square feet, and Department Z is 6,000 square feet. What’s the percent of overhead expense applied to Department Z? (Round your answer to the nearest whole percent.)
A. 68%
B. 32%
C. 26%
D. 42%
14. Calculate the median from the following numbers: 16, 9, 10, 5, 4 A. 10 B. 9 C. 4 D. 5 15. _______ helps to reduce financial risk when unexpected events occur, such as fires, floods, earthquakes, auto accidents, illnesses, and death.
A. Insurance
B. Mutual funds
C. Inventory
D. Taxes
15. _______ helps to reduce financial risk when unexpected events occur, such as fires, floods, earthquakes, auto accidents, illnesses, and death.
A. Insurance
B. Mutual funds
C. Inventory
D. Taxes
16. The building of A-Boy Supply is assessed at $109,000. The tax rate is $86.95 per $1,000 of assessed valuation. The tax due is
A. $8,659.54.
B. $9,477.55.
C. $8,695.45.
D. $947.75.
17. Janet received the following grades in an accounting class at McClenan Community College: 65, 80, 70, 100, 75, and 90. The instructor said he would drop the lowest grade. After the lowest grade is dropped, what’s Janet’s average?
A. 83
B. 81
C. 82
D. 84
18. Myra bought 400 shares of Google at $399.75 per share. Assume a commission of 2% of the purchase price. What’s the total to Myra? End of exam
A. $156,702
B. $163,098
C. $163,980
D. $159,900
19. Assume the mean useful life of a particular light bulb is 2,000 hours, which is normally distributed with a standard deviation of 300 hours. What is the range of the useful life of light bulbs within two standard deviations of the mean?
A. Longer than 2,300 hours
B. Between 1,400 and 2,600 hours
C. Between 1,700 and 2,300 hours
D. Longer than 1,700 hours
20. Jack Matthew bought a new diamond ring for $20,000. Sales tax is 5% with a 10% excise tax. The total price including taxes that Jack paid is
A. $21,000.
B. $20,000.
C. $19,000.
D. $23,000.
