CAP Business Math and Calculations 3

Question 1

A company has current assets of $75,000 and current liabilities of $25,000. What is the current ratio?

Accepted Answer

3:1

Answer

2:1

Answer

4:1

Answer

1.5:1

Question 2

An asset costs $12,000, has a salvage value of $2,000, and a useful life of 5 years. Using straight-line depreciation, what is the annual depreciation expense?

Accepted Answer

$2,000

Answer

$1,600

Answer

$2,400

Answer

$2,800

Question 3

Total expenses are $42,000 and sales revenue is $60,000. What percentage of revenue do expenses represent?

Accepted Answer

70%

Answer

60%

Answer

65%

Answer

75%

Question 4

A gross paycheck of $2,800 has deductions of $392.00 (federal tax), $173.60 (Social Security at 6.2%), and $40.60 (Medicare at 1.45%). What is the net pay?

Accepted Answer

$2,193.80

Answer

$2,193.40

Answer

$2,193.00

Answer

$2,250.00

Question 5

A business had beginning inventory of $8,000, purchased $22,000 in goods during the period, and has ending inventory of $5,000. What is the cost of goods sold?

Accepted Answer

$25,000

Answer

$24,000

Answer

$26,000

Answer

$27,000

Question 6

Total liabilities are $90,000 and total equity is $60,000. What is the debt-to-equity ratio?

Accepted Answer

1.5

Answer

0.67

Answer

1.0

Answer

2.0

Question 7

A petty cash fund starts with $150.00. During the period, $42.50 was spent on office supplies, $18.75 on postage, and $23.00 on miscellaneous items. How much cash should remain in the fund?

Accepted Answer

$65.75

Answer

$66.25

Answer

$65.25

Answer

$65.50