# November 2023 BUSINESS AND FINANCE AND STATISTICS 1 Commissions charged on the trading of stock are A fixed B

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Business Finance

BUSINESS AND FINANCE AND STATISTICS

1. Commissions charged on the trading of stock are

A. fixed.

B. charged only on sale of stock.

C. charged only on buying of stock.

D. charged on buying and selling of stock.

2. Clay’s Fishing Shop’s beginning inventory is $70,000 and ending inventory is $36,500. What was Clay’s average inventory?

A. $53,250

B. $48,000

C. $18,250

D. $35,000

3. Jangles Co. earned $1.80 per share. Assuming a closing price of $40, what is the PE ratio? (Round your answer to the nearest whole number.)

A. 20

B. 72

C. 7

D. 22

4. Determine the mode from the following numbers: 71, 3, 13, 33, 3, 71, 14, 33, 13, and 33.

A. 13

B. 33

C. 3

D. 71

5. Usually, assessed value is rounded to the nearest

A. dollar.

B. percent.

C. cent.

D. tenth.

6. 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 is the inventory turnover at retail rounded to the nearest hundredth?

A. 2.35

B. 5.23

C. 3.25

D. 5.15

7. The tax rate of $.6943 in decimal can be expressed per $100 as

A. $69.43.

B. $6.943.

C. $690.3.

D. $69.43 mills.

8. 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. $140

D. $14

9. What is the retail method?

A. It doesn’t require a cost ratio.

B. It aids a company in not having to calculate an inventory cost for each individual item.

C. It eliminates the need to take a physical inventory.

D. It’s not an estimate.

10. Which one of the following statements is true about reduced paid-up insurance?

A. It buys protection with paying new premiums.

B. It means the original face amount is continued for a certain number of years.

C. It continues for 20 years.

D. It results in a face amount less than the original amount

11. Crestwood Paint Supply had a beginning inventory of 10 cans of paint at $25.00 per can. They purchased 20 cans during the month at $30.00 per can. They had an ending inventory valued at $500. How much paint in dollars was used for the month?

A. $350

B. $1,350

C. $850

D. $250

12. The municipality of Waterloo needs $915,000 from property tax to meet its budget. The total value of assessed property in Waterloo is $14,000,000. What is the tax rate per dollar? (Round your answer to the nearest thousandth.)

A. $.0655

B. $.065

C. $.07

D. $.071

13. 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. ending inventory at retail.

C. net sales.

D. cost of goods available for sale at retail.

14. 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. $163,098

B. $163,980

C. $159,900

D. $156,702

15. Suppose Department A is 8,000 square feet, Department B is 5,000 square feet, and Department C is 6,000 square feet. What is the percent of overhead expense applied to Department C? (Round your answer to the nearest whole percent.)

A. 42%

B. 32%

C. 26%

D. 68%

16. In terms of premium cost, the most expensive type of insurance is _______ insurance.

A. term

B. 20-payment life

C. 20-year endowment

D. straight-life

17. The weighted-average method is best used

A. for homogeneous products.

B. for heterogeneous products.

C. only for grains.

D. only for fuels.

18. Which one of the following statements is true of specific identification?

A. Low-cost items aren’t used in this method.

B. Flow of goods and flow of cost are the same.

C. Ending inventory isn’t associated with specific purchase prices.

D. The specific purchase invoice prices aren’t used.

19. Total sales of $400,000 that included a 6% sales tax yields actual sales of

A. $48,200.

B. $377,358.49.

C. $37,537.58.

D. $42,800.

20. Stocks are always quoted in

A. quarter lots.

B. percents.

C. decimals.

D. quarters of a dollar.

21. 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. $13,250

B. $26,500

C. $30,000

D. $26,000

22. Which one of the following statements is true of preferred stock?

A. It never has a preference to dividends over common stockholders.

B. It never receives dividends in arrears.

C. It has equal rights to common stock.

D. It can be cumulative.

23. What are overhead expenses?

A. They contribute directly to the running of a business.

B. They’re directly related to a specific product.

C. They’re directly related to a specific department.

D. They contribute indirectly to the running of a business.

24. 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. $8,695.45.

B. $8,659.54.

C. $9,477.55.

D. 94,698.23.

E. $947.75.

25. Personal property items do not include

A. furniture.

B. jewelry.

C. land.

D. autos