Fundamental Accounting
(2018)
3. If liabilities total $2,000 and the owner’s equity totals $18,000, the asset value is
a. $ 2,000
b. $16,000
c. $18,000
d. $20,000
d. $20,000
(2020)
3. A suit selling for $80 was reduced to $50. By what percent was the suit discounted?
a. 6.25%
b. 37.5%
c. 30%
d. 62.5%
b. 37.5%
(2021)
12. Defamation is a false and derogatory statement in spoken or written form.
A. True
B. False
A. True
True or False
A 401k savings can be withdrawn with no tax penalty after retirement age?
False
True or False
You can get a lower mortgage if you have a good credit score
True
(2018)
5. If a business pays cash for a new truck, which of the following statements is true?
a. one asset increases and one liability decreases
b. one asset increases and owner’s equity increases
c. one asset decreases and owner’s equity decreases
d. one asset increases and another asset decreases
d. one asset increases and another asset decreases
(2020)
6. Paying with a $100 bill, Payton bought everyone’s supper which totaled $83.00. After
paying a 20% tip on top of the total, how much change did Payton get back from her $100?
a. $ 6.60
b. $16.60
c. $ 1.40
d. $ 0.40
d. $ 0.40
(2021)
26. A term that is used in cases involving the negligence of professionals is _____.
A. false imprisonment
B. vis major
C. misfeasance
D. malpractice
D. malpractice
At what age can you retrive Roth IRA savings without penalty?
a. 65
b. 60 1/2
c. 59 1/2
d. 59
c. 59 1/2
Which of the following will lead to a decrease in a nation’s money supply?
(A) A decrease in income tax rates
(B) A decrease in the discount rate
(C) An open market purchase of government securities by the central bank
(D) An increase in reserve requirements
(E) An increase in government expenditures on goods and services
An increase in reserve requirements.
(2019)
18. Which of the following will show net income on a worksheet?
a. Income Statement credit column minus Income Statement debit column
b. Balance Sheet credit column minus Balance Sheet debit column.
c. Income Statement credit column minus Balance Sheet credit column.
d. Balance Sheet credit column minus Income Statement debit column.
a. Income Statement credit column minus Income Statement debit column
(2021)
14. A check is mailed to the bank to be deposited. How should the check be endorsed?
a. Sign your name on the front of the check.
b. Sign the payer’s name on the back of the check.
c. Sign your name and write “For Deposit Only” and your account number on the back of the check.
d. You don’t need to sign the check.
c. Sign your name and write “For Deposit Only” and your account number on the back of the check.
(2021)
27. The method of termination of an offer occurring when the offeree responds with a
willingness to enter into a contract but on different terms is _____.
A. lapse
B. revocation
C. rejection
D. counter offer
D. counter offer
Define Capital
a. wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.
b. the action or process of investing money for profit or material result.
c. the money you have left after paying for business expenses
d.the action or business of promoting and selling products or services, including market research and advertising.
Wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.
What is the compound interest formula?
a. A=IPRT
b. A=P(1+(r/n))nt
c. A=P(1+rt)
D. A=P(1-(r/n))nt
A=P(1+(r/n))nt
(2020)
4. EJ’s Texas Eats’ payroll for this pay period included: 2 managers each being paid
$4,200 per pay period; 14 waitstaff being paid $4.10 per hour for a total of 552 hours
(no waitstaff worked over 40 hours).
4a. What is the total salary expense for the pay period? 4a.
4b. How much is the Social Security tax liability for this
pay period? Tax rate for Social Security is 6.2%. 4b.
a. $10,663.20
b. $1,322.24
3. Emily purchases a new car for $32,800. She receives a manufacturer’s rebate of $1,800 and
pays registration costs of $248. Her down payment is a trade-in worth $6,700 for her old car.
Emily will get a loan from a bank for the remaining amount.
(a) What is the cost of the car before the down payment? a
(b) How much will Emily have to borrow? b
(c) What percent down did Emily’s trade-in represent?
a. $31,248
b. $24,548
c. 21.4%
(2021)
37. An employer makes significant changes to a contracted employee’s job status or responsibility without their consent. This constitutes ______.
A. wrongful dismissal
B. constructive dismissal
C. insufficient notice
D. none of the above making such changes is an employer’s prerogative
B. constructive dismissal
Bank of America has a return on investment rate of .85%. If your initial investment was 23,000 how much did you earn after 6 months?
a. 97.75
b. 9,775
c. 19,550
d. 195.5
a. 97.75
According to the short-run Phillips curve, lower inflation rates are associated with:
(A) higher unemployment rates
(B) higher government spending
(C) larger budget deficits
(D) greater labor-force participation rates
(E) smaller labor-force participation rates
Higher unemployment rates.
(2018)
4. On December 1, 2017, Professional Business Associates opened their new business with the following assets and liabilities. Complete the accounting equation for the firm.
Assets $ = Liabilities $ + Owner’s Equity $
Accounts Payable $ 1,100
Prepaid Rent $ 6,000
Cash $ 3,950
Notes Payable $15,500
Equipment $26,200
Supplies $ 1,250
Assets $37,400
Liabilities $16,600
Owner’s Equity $20,800
(2021)
1. Name of Stock: RMB Plastics
Shares Traded: 200
Selling Price: $42.44
Commission: $172.88
Total cost of purchase: $7,628.12
Find the profit (+) or loss (-) in each of these sales.
+$687
(2021)
43. Pat, age 65, is driving down Main Street when he suffers the first seizure of his life. He loses
control of his vehicle and runs into three people on the sidewalk. Which statement is true?
A. He is liable for an intentional tort.
B. He is liable for a negligent tort.
C. He is not liable for a negligent tort.
D. He is liable under strict liability, because driving a car is abnormally dangerous.
C. He is not liable for a negligent tort.
Michael Scott's Paper Company pays their employees on a semi-monthly basis. If Sandra works 42 hours every week in October, how much will she get paid at the end of the month?
Sandra's regular pay rate: $15
a. 2,580
b. 1,200
c. 1,290
d. 2,400
c. 1,290
Andrea has a bank account with a balance of $2,500. Her bank gives her an interest rate of 2% which compounds quarterly over a period of 3 years. How much money did Andrea receive from interest?
Free Response
$154.19