Business Financials

Multiple Choice

Emma bought a painting for $150 and sold it for $200. What was the selling price of the painting?

• $150

• $175

• $200

• $250

Multiple Choice

If a product's selling price is $100 and the cost price is $70, what is the profit percentage?

• 20%

• 30%

• 40%

• 50%

Multiple Choice

Ethan sells a gadget for $150, making a profit of $30. What was the cost price of the gadget?

• $100

• $110

• $120

• $130

Multiple Choice

What is the selling price if a product costs $50 to produce and the desired profit margin is 20%?

• $55

• $60

• $70

• $75

Multiple Choice

Noah sells handcrafted jewelry. He wants to make a 20% profit margin on a necklace that costs him $50 to make. What should be the selling price?

• $55

• $60

• $62.50

• $70

Multiple Select

What are some examples of assets?

• inventory

• cash

• equipment

• company vehicles

Multiple Select

Which of the following are accounts payable?- These are costs that have to be PAID.

• credit cards

• mortgage

• savings accounts

• loans

Multiple Choice

Which of the following is a liability on a balance sheet?

• Inventory

• Retained Earnings

• Accounts Payable

• Cash

Categorize

Options (9)

Rent/Lease

Insurance

Costs that do not change

Costs that fluctuate

raw materials

wages/hourly

credit card fees

supplies

commissions

Place the costs in the correct heading.

Fixed Costs

Variable Costs

Multiple Choice

Gwen bought an old table. She repaired it and painted, and then sold it. Gwen made this list about what she did.
• Price paid for old table: $10.00
• Cost to repair: $5.00
• Cost to paint: $7.50
• Selling price: $50.00
What was Gwen’s profit from selling the table?  

• $27.50
• $50.00
• $22.50

Multiple Choice

What is the run rate of a shoe store that has a starting cash balance of $18,000, cash sales of $500, POS sales of $16,000, employee wages of $7,000, $5,000 cost of goods. What is the Burn rate?

• $22,500

• $34,000

• $34,500

• $414,000

Multiple Choice

What is the run rate of a shoe store that has a starting cash balance of $18,000, cash sales of $500, POS sales of $16,000, employee wages of $7,000, $5,000 cost of goods. What is the Run rate?

• $22,500

• $34,000

• $34,500

• $414,000

Multiple Choice

What is the formula for return on investment?

• (Total revenue / Investment) x 100

• (Operating expenses / Investment) x 100

• (Gross profit / Investment) x 100

• (Net profit / Investment) x 100

Multiple Choice

Jennifer made a lawn business and bootstrapped $1,500 for lawn equipment, spent $150 on gasoline, $500 on a trailer to pull the equipment. She earned $20,000 during the first 6 months. What

the Net profit?

• $20,000

• $17,900

• 835%

• 83%

Multiple Choice

Jennifer made a lawn business and bootstrapped $1,500 for lawn equipment, spent $150 on gasoline, $500 on a trailer to pull the equipment. She earned $20,000 during the first 6 months. What

is the return on her investment?

• $20,000

• $17,900

• 835%

• 83%

Multiple Choice

Sophia is calculating the cost of producing a batch of cookies. If she sells the batch for $40 and wants a profit margin of 25%, what is the cost of producing the batch?

• $25

• $30

• $32

• $35

Multiple Choice

Liam owns a small bakery and sells a loaf of bread for $12. If the cost to produce each loaf is $8, what is the profit margin percentage?

• 25%

• 33.33%

• 50%

• 66.67%

Multiple Select

Which of the following is a current asset on a balance sheet?

• Equipment

• Accounts Receivable

• Long-term Investments

• Mortgage Payable

Multiple Choice

In a profit and loss statement, which of the following is deducted from gross profit to calculate operating income?

• Taxes

• Operating Expenses

• Interest

• Dividends

Multiple Choice

In a profit and loss statement, which of the following represents the total revenue minus the cost of goods sold?

• Net Income

• Gross Profit

• Operating Income

• Net Profit

Multiple Select

Which of the following is considered an operating cost?

• Interest Expense

• Depreciation

• Cost of Goods Sold

• Rent

Multiple Choice

Which of the following is NOT included in operating costs?

• Salaries

• Utilities

• Advertising

• Income Tax

Multiple Choice

What is the difference between net income and gross income?

• Net income includes taxes, gross income does not.

• Gross income includes all expenses, net income does not.

• Net income is after all expenses, gross income is before expenses.

• Gross income is after taxes, net income is before taxes.

Multiple Choice

If a company has fixed costs of $10,000, a selling price of $20 per unit, what is the break-even point in units?

• 200 units

• 300 units

• 400 units

• 500 units