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##### John Sullivan bought a new Brunswick boat for $17,000. He made a $2,500 down payment on it

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Question;1.;John Sullivan bought a new;Brunswick boat for $17,000. He made a $2,500 down payment on it. The bank's;loan was for 60 months, and the finance charges totaled $4,900. What is his;monthly payment?;A. $313.33;B. $323.33;C. $232.33;D. $332.33;2. Joe Sullivan invests $9,000 at the end of each year for 20 years. The rate;of interest Joe gets is 8% annually. Using the tables in the Business Math;Handbook that accompanies the course textbook, determine the final value of;Joe's investment at the end of the 20th year on this ordinary annuity.;A. $411,858.00;B. $88,362.90;C. $88,632.90;D. $411,588.00;3. Connie made deposits of $2000 at the beginning of each year for four years.;The rate she earned is 5% annually. What is the value of Connie's account in four;years?;A. $11,051.00;B. $8,260.20;C. $8,260.00;D. $9,051.20;4. In using horizontal analysis, comparative reports are;A. never used.;B. always used.;C. infrequently used.;D. often used.;5. Using the tables in the Business Math Handbook that accompanies the course;textbook, determine the difference between the monthly payments on a $120,000;home at 61?2% and at 8% for 25 years.;A. $115.20;B. $91.12;C. $81.12;D. $151.02;6. Which one of the following methods is not based on the passage of time?;A. Units-of-production;method;B. Declining-balance method;C. Straight-line method;D. None of these;7. Open credit in a revolving charge plan results in;A. as many cash purchases till credit limit is reached.;B. one purchase per month.;C. the U.S. Rule being applied to each purchase.;D. as many charged;purchases till credit limit is reached.;8. The average daily balance is equal to the sum of daily balances;A. multiplied by number of days in billing cycle.;B. plus number of days in billing cycle.;C. divided by number of days in billing cycle.;D. minus number of days in billing cycle.;9. If a car is depreciated in four years, what is the rate of depreciation;using twice the straight-line rate?;A. 50%;B. 100%;C. 25%;D. 75%;? * 2= 50%;10. Ben Brown bought a home for $225,000. He put down 20%. The mortgage is at 6;?% for 30 years. Using the tables in the Business Math Handbook that;accompanies the course textbook, determine his monthly payment.;A. $1,139.40;B. $1,319.04;C. $1,319.40;D. $1,216.80;11. In an ordinary annuity, when does the interest on a yearly investment start;building interest?;A. After the second period ends;B. At the end of the first period;C. During the first period;D. At the beginning of the first period;12. A $104,000 selling price with $24,000 down at 81?2% for 25 years results in;a monthly payment of;A. $654.60.;B. $645.60.;C. $644.80.;D. $546.06.;13. What does an amortization schedule show?;A. The balance of interest outstanding;B. The portion of payment;broken down to interest and principal;C. The increase in loan outstanding;D. The increase to principal;14. When are annuity due payments made?;A. At the beginning of the period;B. At the end of the period;C. Monthly;D. Yearly;15. Megan Mei is charged 2 points on a $120,000 loan at the time of closing.;The original price of the home before the down payment was $140,000. How much;do the points in dollars cost Megan?;A. $8,200;B. $2,800;C. $2,400;D. $4,200;16. Depreciation expense is located on the;A. income statement.;B. the accounts receivable documention.;C. balance sheet.;D. the accounts payable documentation.;17. Ted Williams made deposits of $500 at the end of each year for eight years.;The rate is 8% compounded annually. Using the tables in the Business Math;Handbook that accompanies the course textbook, calculate the value of Ted's;annuity at the end of eight years.;A. $4,318.30;B. $2,837.03;C. $2,873.30;D. $5,318.30;18. At the beginning of each year for 14 years, Sherry Kardell invested $400;that earns 10% annually. What is the future value of Sherry's account in 14;years?;A. $12,709;B. $12,309;C. $14,000;D. $13,100;19. The acid test ratio does not include;A. inventory.;B. supplies.;C. accounts receivable.;D. cash.;20. What is a sinking fund?;A. It doesn't compound its money.;B. It requires one lump sum payment at the beginning.;C. It aids in meeting a;future obligation.;D. It's not really an annuity.;21. Jay Corporation has earned $175,900 after tax. The accountant calculated;the return on equity as 12.5%. Jay Corporation's stockholders' equity to the;nearest dollar is;A. $14,720.;B. $140,720.;C. $1,407,200.;D. $140,720,000.;22. A truck costs $16,000 with a residual value of $1,000. It has an estimated;useful life of five years. If the truck was bought on July 3, what would be the;book value at the end of year 1 using straight-line rate?;A. $14,500;B. $16,000;C. $1,500;D. $12,500;23. Jen purchased a condo in Naples, Florida, for $699,000. She put 20% down;and financed the rest at 5% for 35 years. What are Jen's total finance charges?;A. $600,000.00;B. $606,823.20;C. $626,863.20;D. $457,425.60;24. With a mortgage of $48,000 for 15 years with a rate of 11%, what are the;total finance charges?;A. $50,236.80;B. 545.76;C. $54,576;D. $5,023.68;25. At the beginning of each year, Bill Ross invests $1,400 semiannually at 8%;for nine years. Using the tables in the Business Math Handbook that accompanies;the course textbook, determine the cash value of the annuity due at the end of;the ninth year.;A. $38,739.68;B. $37,339.68;C. $37,399.68;D. $37,939.86;Section 2;1. Total sales of $400,000 that included a 6% sales tax yields actual sales of;A. $42,800.;B. $48,200.;C. $377,358.49.;D. $37,537.58.;(400,000 / 1.06 = 377,358.49);2. A bond quote of 82.25 in dollars is equal to;A. $822.50.;B. $8,025.50.;C. $8.25.;D. $82.25.;(1000 *.8225 = 822.50);3. The cost ratio in the retail method is found by the cost of goods available;for sale at cost divided by the;A. ending inventory at retail.;B. net sales.;C. cost of goods available;for sale at retail.;D. net purchases at cost.;4. The weighted-average method is best used;A. for homogeneous;products.;B. only for fuels.;C. only for grains.;D. for heterogeneous products.;5. Bauer Supply had total cost of goods sold of $1,400 with 140 units available;for sales. What was the average cost per unit?;A. 14.10;B. $10;C. $14;D. $140;6. Calculate the optional bodily injury cost for the following;Class: 10;Optional Bodily Injury: 100/300/50;A. $108;B. $94;C. $144;D. $187;7. Jay Miller insured his pizza shop for $200,000 for fire insurance at an;annual rate per $100 of $.49. At the end of 10 months, Jay canceled the policy;since his pizza shop went out of business. Using the tables in the Business;Math Handbook that accompanies the course textbook, determine the refund to;Jay.;A. $186.20;B. $127.40;C. $852.60;D. $980;8. In terms of premium cost, the most expensive type of insurance is;insurance.;A. 20-payment life;B. term;C. straight-life;D. 20-year endowment;9. 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 1,700 hours;B. Between 1,400 and 2,600 hours;C. Longer than 2,300 hours;D. Between 1,700 and 2,300;hours;10. Determine the mode from the following numbers: 71, 3, 13, 33, 3, 71, 14;33, 13, and 33.;A. 3;B. 33;C. 71;D. 13;11. Matt Miller, age 28, takes out $50,000 of straight-life insurance. His;annual premium is $418.20. Using the tables in the Business Math Handbook that;accompanies the course textbook, determine the cash value of his policy at the;end of 20 years.;A. $30,000;B. $13,250;C. $26,500;D. $26,000;12. An auto insurance premium may be partially based on the;A. number of years one expects to drive a car.;B. attitude of the driver.;C. expected life of the car.;D. make of the car.;13. Which one of the following statements is true of specific identification?;A. Ending inventory isn't associated with specific purchase prices.;B. Flow of goods and flow;of cost are the same.;C. The specific purchase invoice prices aren't used.;D. Low-cost items aren't used in this method.;14. Mike's condo has a market value of $310,000. The property in Mike's area is;assessed at 40% of the market value. The tax rate is $145.10 per $1,000 of;assessed valuation. The tax for Mike is;A. $17,992.40.;B. $16,992.40.;C. $7,999.40.;D. $7,999.30.;15. Which one of the following statements is true about reduced paid-up;insurance?;A. It buys protection with paying new premiums.;B. It continues for 20 years.;C. It results in a face;amount less than the original amount.;D. It means the original face amount is continued for a certain number of;years.;16. Kris bought a new fur coat for $8,000. She must pay 5% sales tax and 7%;excise tax. The furrier is shipping the coat, so Kris must also pay a $15;insurance charge. What is the total purchase price of the coat?;A. $8,960;B. $8,975;C. $8,560;D. $8,400;17. What are overhead expenses?;A. They're directly related to a specific department.;B. They're directly related to a specific product.;C. They contribute directly to the running of a business.;D. They contribute;indirectly to the running of a business.;18. Commissions charged on the trading of stock are;A. charged only on buying of stock.;B. charged on buying and;selling of stock.;C. charged only on sale of stock.;D. fixed.;19. During inflation, the best method to use in inventory valuation that;produces the smallest amount of profit is;A. LIFO.;B. FIFO.;C. weighted average.;D. specific invoice.;20. The building of Jim's Hardware is assessed at $109,000. The tax rate is;$86.95 per $1,000 of assessed valuation. The tax due is;A. 94,698.23.;B. $8,695.45.;C. $9,477.55.;D. $8,659.54.;E. $947.75.;21. Stocks are always quoted in;A. decimals.;B. percents.;C. quarters of a dollar.;D. quarter lots.;22. To avoid distortion of extreme values, a good indicator would be the;A. mode.;B. median.;C. mean.;D. weighted-mean.;23. Usually, assessed value is rounded to the nearest;A. dollar.;B. tenth.;C. percent.;D. cent.;24. Bee Sting bought 400 shares of Google at $399.75 per share. Assume a;commission of 2% of the purchase price. What is the total to Bee?;A. $159,900;B. $163,098;C. $163,980;D. $156,702;25. What is the retail method?;A. It eliminates the need;to take a physical inventory.;B. It aids a company in not having to calculate an inventory cost for each;individual item.;C. It doesn't require a cost ratio.;D. It's not an estimate.

Paper#37936 | Written in 18-Jul-2015

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