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WorksheetsDomain 4, Lesson 1 & 2 Review
Total questions: 20
Worksheet time: 11mins
A(n) (a) refers to the net profit the company wants to make from the sale and is usually represented using a percentage. [Selling Price]
(a) is the owner's remaining value after all liabilities have been deducted. [Basic Financial Statements]
Subtracting liabilities from assets calculates equity. A company’s balance sheet shows assets, liabilities, and equity.
Mallory owns an auto repair shop. She has $12,000 in cash, $8,000 in inventory, a $4,000 credit card balance, and $3,500 in long-term debt. What is Mallory’s equity?
(a)
Subtracting the cost of goods from income calculates gross income.
Mallory sells hats. Last month, Mallory had an income of $3,800, her cost of goods was $875, and her total expenses were $1,400. What was Mallory’s gross income?
(a)
Subtracting the cost of goods and expenses from income calculates net income. Subtracting the cost of goods from income calculates gross income.
Jane owns a dress-making business. Her income last quarter was $8,000, her cost of goods was $1,500, and her total expenses were $3,000. What were Jane’s net income?
(a)
What is the formula for determining gross profit?
Gross profit = Income + Cost of goods
Gross profit = Income x Cost of goods
Gross profit = Income / Cost of goods
Gross profit = Income - Cost of goods
What is the formula for determining a break-even point?
Break-even point = Total cost x Product or service sales price
Break-even point = Total cost / Product or service sales price
Break-even point = Total cost - Product or service sales price
Break-even point = Total cost + Product or service sales price
What is the formula for determining selling prices?
Selling price = (Cost x Desired profit margin) + Cost
Selling price = (Cost x Desired profit margin) - Cost
Selling price = (Cost - Desired profit margin) / Cost
Selling price = (Cost / Desired profit margin) + Cost
What is the formula for determining equity?
Equity = Assets x Liabilities
Equity = Assets - Liabilities
Equity = Liabilities / Assets
Equity = Liabilities - Assets
Return on investment (ROI) is used by businesses to show them how much their (a) is earning. [ROI]
Variable costs (a) depending on production. [Fixed and Variable Costs]
What is the formula for determining burn rate?
Burn rate = Month starting balance - Month ending balance
Burn rate = Month starting balance / Month ending balance
Burn rate = Month starting balance x Month ending balance
Burn rate = Month starting balance + Month ending balance
What is the formula for determining a return on investment (ROI)?
ROI = (Net profit + Cost of investment) x 100
ROI = (Net profit / Cost of investment) x 100
ROI = (Net profit / Cost of investment) / 100
ROI = (Net profit - Cost of investment) x 100
What is the formula for determining run rate?
Current revenue for one month + 12
Current revenue for one month / 12
Current revenue for one month x 12
Current revenue for one month - 12
Fixed costs change depending on the volume of production
True
False
Gary is opening a restaurant. Determine whether his costs below are fixed or variable:
Takeaway Boxes
Fixed
Variable
Gary is opening a restaurant. Determine whether his costs below are fixed or variable:
Rent
Fixed
Variable
Gary is opening a restaurant. Determine whether his costs below are fixed or variable:
Credit card bill
Fixed
Variable
Gary is opening a restaurant. Determine whether his costs below are fixed or variable:
Ingredients
Fixed
Variable
Gary is opening a restaurant. Determine whether his costs below are fixed or variable:
Insurance
Fixed
Variable
