CSA Financial Planning & Budgeting 3

Question 1

A sugar artist offers a 10% discount on orders over $500. A client orders $600 worth of work. What is the final invoice amount?

Accepted Answer

$540

Answer

$600 × 10% = $60 discount; $600 - $60 = $540 final invoice amount.

Question 2

What is the purpose of maintaining a separate business bank account for a sugar art studio?

Accepted Answer

To simplify personal and business expense tracking

Answer

Separate accounts make bookkeeping cleaner, simplify tax preparation, and protect personal finances from business liabilities.

Question 3

Which type of insurance is most critical for a home-based sugar art business selling food products?

Accepted Answer

General liability and product liability insurance

Answer

General and product liability insurance protects against claims of injury or illness caused by your food products.

Question 4

A sugar artist earns $80,000 annually and estimates a 25% effective tax rate. How much should be set aside for taxes?

Accepted Answer

$20,000

Answer

$80,000 × 25% = $20,000 should be reserved for annual tax obligations.

Question 5

What is a retainer deposit in the context of custom sugar art orders?

Accepted Answer

An upfront partial payment to secure a booking

Answer

A retainer is an upfront deposit paid by the client to reserve the artist's time and commitment to their order.

(CSA) Certified Sugar Artist Practice Test