WorksheetsBusiness Math Review Packet
Total questions: 70
Worksheet time: 35mins
Which term describes an employee who receives a fixed amount each day?
tip
per diem
hourly
commission
To calculate an employee’s time-and-a-half pay rate
multiply the regular pay rate by 2.
divide the regular pay rate by 1.5.
divide the regular pay rate by 2.
multiply the regular pay rate by 1.5.
What is another name for simple average?
estimate
mean
best approximation
median
Another word for tip is
gift
perk
gratuity
reward
Which method are most companies LEAST likely to use to record the number of hours their employees work?
Employees pass a magnetic stripe card through a reader.
Employees insert a time card into a time clock.
Employees write their hours worked on a time sheet.
Employees keep track of their hours worked mentally.
Which term best describes the total amount of money that an employee is paid?
net pay
gross pay
commission
salary
Typically a piece-rate employee is paid only for
the total number of rejected pieces produced.
the total number of usable pieces produced.
To calculate the annual gross pay for an employee who receives a monthly salary
divide the monthly salary by 12.
multiply the monthly salary by 12.
multiply the monthly salary by 6.
none of the above
Which of the following is an example of a job benefit?
paid holidays
recreational facilities
child care
all of the above
Which of the following describes how to calculate net pay?
Subtract the total deductions from the net pay.
Add the total deductions to the gross pay.
Subtract the total deductions from the gross pay.
Subtract the total deductions from the take-home pay.
Which report must taxpayers file each year to determine if they have paid enough taxes?
federal income tax report
federal income tax statement
federal income tax document
federal income tax return
Workers may claim one withholding allowance for which of the following?
themselves
their spouse
each child or dependent
all of the above
Which of the following describes how to calculate take-home pay as a percentage of gross pay?
Divide total deductions by gross pay.
Divide take-home pay by gross pay.
Divide total deductions by take-home pay.
Multiply gross pay by 67%.
The term that describes the numeric value where the interest rate and number of interest periods meet in a compound interest table is the
interest value.
interest rate.
periodic rate.
Which of the following is NOT a heading in a check register?
interest rate
check number
balance
transaction
Which of the following activities can a customer do while using an ATM?
Withdraw or deposit money.
See account balances.
Make transfers between accounts.
all of the above
Which of the following is the best example of an outstanding transaction?
A canceled check that has been returned by the bank.
An ATM withdrawal that has not been recorded in the check register.
A check recorded in the check register that the bank has not yet received.
none of the above
Which of the following describes the length of time that money must be left on deposit in a CD?
term
APR
maturity date
length of deposit
Which of the following services are typically available to customers with online banking?
Transfer money between accounts.
Have bills sent electronically instead of through the mail.
Have account access 24 hours a day, 7 days a week.
all of the above
What is the name for the personalized password that each customer must enter before making ATM transactions?
EFT
PWD
PIN
PRT
Which of the following best describes how compound interest works?
Interest is calculated only on previously earned interest.
Interest is calculated and added to the previous balance to become the new principal.
Interest is calculated only on the original principal.
Interest is calculated and subtracted from the previous balance.
Which of the following describes how to calculate simple interest?
Interest = Principle + Rate X Time.
Interest = Principle ÷ Rate ÷ Time.
Interest = Principle X Rate ÷ Time.
Interest = Principle X Rate X Time.
The deposit amount after subtracting any cash received by the customer is referred to as the
total deposit.
final deposit.
net deposit.
gross deposit.
To avoid being charged for unauthorized fees or sales by a credit card company, customers should
save their credit card sales slips and compare them with their credit card statement.
check that all payments appear on their credit card statement.
check that any purchase returns appear on their credit card statement.
all of the above
Which of the following best describes how a cash advance on a credit card works?
Customers can get cash from an ATM using their credit card.
The cash is borrowed money and subject to interest charges.
Credit card companies often charge a transaction fee for the service.
all of the above
Which of the following best describes how to calculate a monthly periodic rate?
Divide the APR by twelve and write as a decimal.
Multiply the finance charge by twelve and write as a decimal.
Multiply the APR by the number of days in the month and write as a decimal.
Multiply the APR by twelve and write as a decimal.
Which of the following is NOT a strategy for managing or reducing debt?
Use a debit card instead of cash.
Transfer high interest credit card balances to lower interest accounts.
A person's debt-to-income ratio is the percent of income spent on housing and other debts and is calculated by
dividing the total of all debt payments by net income.
dividing the total of all debt payments by gross income.
dividing gross income by the total of all debt payments.
dividing the total of all credit card payments by gross income.
Credit card companies make a profit in all the following ways except by
collecting fees for cash advances, balance transfers, and late payments.
collecting fees from stores for accepting credit card transactions.
collecting fees for processing new cardholder applications.
collecting finance charges on any unpaid balances or cash advances.
When comparing credit cards, all the following should be evaluated before making a decision with the exception of
the annual percentage rate.
the credit limit available.
the method used for calculating finance charges.
the annual fees assessed.
Which of the following is NOT a factor that influences an individual's credit score?
debt-to-income ratio
length of credit history
amounts owed to creditors
payment history
Some lenders require the borrower to pledge property as security for a loan. This property is referred to as
an installment.
equity.
a down payment.
collateral.
How many days are considered to be in a year according to the ordinary interest method?
365
366
360
355
A sum of money given at the beginning of an installment plan is known as the
collateral.
down payment.
deposit.
finance charge.
Which of the following should be considered when deciding whether to pay off a loan early?
prepayment penalties
the amount of interest saved
interest that could be earned by investing the money used for early payoff
all of the above
When a lender calculates the payments on a loan so that each payment is the same, it is called
an equal payment plan
a balanced payment plan
a level payment plan
a repayment plan
If a borrower would like to repay their loan early, they can find their final payment due by
multiplying the monthly interest rate by the original balance then adding the result to the current balance
multiplying the interest rate by the current balance then adding the result to the current balance
multiplying the interest rate by the original balance then subtracting the current balance
multiplying the monthly interest rate by the current balance then adding the result to the current balance
To evaluate and compare loans from different lenders, you should consider
the annual percentage rate.
the terms and conditions of the loan.
all additional fees associated with the loan.
all of the above
The principal of a mortgage loan is the
down payment minus the purchase price.
purchase price minus the down payment.
down payment plus the closing costs.
purchase price minus the closing costs.
All of the following are key cost items in the purchase of a new car except
rebates.
sales tax.
down payment.
lease terms.
Which of the following one-time payments are renters typically required to pay in addition to their first month's rent when they sign a lease?
security deposit
renters policy premium
lease tax
utilities payment
The rate of depreciation of a car can be calculated by
dividing the original cost by the average annual depreciation.
dividing the average annual depreciation by the original cost.
subtracting the trade-in resale value from the original cost.
dividing the total depreciation by the number of years.
Which of the following is typically NOT associated with leasing a car?
down payment
residual value
trade-in value
mileage allowed
Property tax rates may be given as each of the following except
a value per $100 of assessed value.
mills per dollar of assessed value.
cents per dollar of assessed value.
dollars per cent of assessed value.
Which type of car insurance covers damage or loss to a vehicle from fire, theft, vandalism, hail, and other causes?
property damage
bodily damage
comprehensive damage
collision
Who is responsible for establishing property tax rates?
Local government authorities
Tax assessors
State government
Federal government
Worker's compensation insurance covers lost wages and medical expenses when employees are injured
at home.
at softball practice.
on the job.
none of the above
What is another word for coinsurance?
co-payment
customer expense
cash value
premium
Which is the correct formula for calculating the interest earned from a bond?
Interest = Par Value ÷ (Rate X Time)
Interest = Par Value X Rate X Time
Interest = Par Value X Rate ÷ Time
Interest = Par Value ÷ (Rate ÷ Time)
Company profits are distributed to shareholders in the form of
dividends.
losses.
par values.
net asset values.
The person named in a life insurance policy to receive the death benefits is called the
policy holder.
beneficiary.
recipient.
heir.
Which of the following is a typical expense associated with owning real estate?
taxes
repairs
insurance
all of the above
By investing in many companies, mutual funds increase the chance of buying stocks that will be
risky.
profitable.
equitable.
aggressive.
The type of life insurance policy that offers protection only for a fixed period of time is called
term life insurance
permanent life insurance
straight life insurance
universal life insurance
The type of coverage typically included in group health policies is
hospitalization insurance.
surgical insurance.
medical insurance.
all of the above
Which of the following is an example of a capital investment in real estate?
fixing a broken fence
adding a room above the garage
replacing faulty electrical wiring
none of the above
What is the primary reason for writing a budget?
to calculate net income
to calculate taxable income
to study past spending habits
to help allocate future income
After working with your budget for several months, you find that you are spending less in several categories than what was budgeted. This is referred to as being
over-budget.
underallocated.
under-budget.
balanced.
Which of the following do you NOT need to know to calculate the break-even point?
fixed costs for manufacturing the product
variable costs for manufacturing each unit of the product
a competitor’s price for the product
expected selling price of each unit of the product
Which of the following is least likely to affect the amount of shipping charges?
the distance the package will travel
the color of the package
the weight of the package
the shape of the package
Employees are typically reimbursed for which of the following expenses when they travel on business trips?
hotel charges
personal entertainment
souvenirs
none of the above
Which of the following is probably not considered a raw material?
2 tons of steel
batteries
batteries
When sales exceed the break-even point, there is a
recession.
profit.
loss.
none of the above
The salary of a machinist at a manufacturing plant would fall into which category?
overhead costs
indirect labor costs
direct labor costs
none of the above
On an income statement, which of the following is subtracted from revenue to find net sales?
cost of goods sold
sales returns and allowances
operating expenses
salaries and wages
A firm owned by only one person is called a(n)
sole proprietorship.
single partnership.
corporation.
independent venture.
The total equity or owner's share of a business is calculated using which formula?
equity = assets + liabilities
equity = assets - liabilities
equity = assets ÷ liabilities
equity = assets – liabilities
Which of the following helps measure the amount of financial risk a business faces by showing the level of debt the firm is carrying?
debt to equity ratio
current ratio
income statement
return on equity
Which of the following compares net income to net sales?
gross profit margin
merchandise turnover rate
income statement
net profit margin
What does a current ratio of 2:1 mean?
A business has twice as many current assets as current liabilities.
A business has twice as many current liabilities as current assets.
A business has twice as many current assets as current equity.
