ESB Cert Practice

James owns a restaurant with beginning cash balance of $5,000, $30,000 in sales, $2,000 in utilities, $6,000 in loans and $4,000 in marketing. What is James ending cash balance?

• $23,000

• $25,000

• $20,000

• $22,000

Shelly owns a car dealership. She just received a shipment of teslas and paid $70,000 for each one and wants to make 25%. What should her selling price be?

• $87,500

• $90,000

• $85,000

• $88,000

TRUE OR FALSE: Mortgage Payments are Long Term Liabilities.

• True

• False

Equipment is considered ...:

• a long term asset

• a short term asset

• a liability

• an expense

ROI is calculated by ...:

• Net Profit / Cost of Investment X 100

• Net Profit / Total Revenue X 100

• Total Revenue / Cost of Investment X 100

• Net Profit / Total Expenses X 100

Run Rate is calculated by ...:

• Current Revenue for one month X 12

• Total Revenue for one month X 12

• Current Revenue for one month X 10

• Total Revenue for one month X 10

Michelle owns a bakery shop. Her revenue at the end of last month was $6,000. What is Michelle's run rate?

• $72,000

• $70,000

• $68,000

• $74,000

Which of the following is a variable expense?

• commission payments

• rent

• insurance

• salaries

Anthony owns a bike shop. His monthly cost is $2,750.00. Each bike costs $275.00. How many bikes does he have to sell to break even?

• 10

• 15

• 12

• 8

How does an entrepreneur determine his / her selling price?

• selling price = cost X desired profit margin + cost

• selling price = cost + desired profit margin

• selling price = cost X desired profit margin

• selling price = cost + cost X desired profit margin