Mini Bus Math Module 5 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Transcription

1 Mini Bus Math Module 5 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Ordinary life insurance policies do not build up a cash value. 2) Term insurance is purchased for a certain period of time and in order to collect under the provisions of the policy the insured must live longer than the term. 3) If a 2% charge is added to the annual premium of $ when payments are made semiannually, how much would semiannual payments be? A) $ B) $ C) $ D) $ ) Poor visibility caused Vicky Weiner's car to crash into another car. She had 25/50/10 vehicle insurance and collision coverage with a $300 deductible. Damage to her car was $3687 and to the other car was $11,200. The driver of the other car had $43,000 in medical expenses and the passenger of the other car had $37,000 in medical expenses. How much will the company pay and how much must Vicky Weiner pay? A) $64,587, $31,500 B) $63,387, $30,300 C) $64,587, $30,300 D) $63,387, $31,500 5) The individual, organization, or business that carries the insurance is called the underwriter. 6) A driver injures a bicycle rider. The driver has 15/30/15 insurance. The injured rider has $18,000 in medical expenses. Find the amount that the insurance company must pay and the amount that the insured must pay. A) $18,000, $0 B) $0, $15,000 C) $30,000, $0 D) $15,000, $3,000 Solve the problem using the table below. In addition, options can be added to the base coverage including the following: identity theft/fraud protection-$20/year; sewer/sump pump backup protection-$75/year. Extended coverage endorsements beyond the maximum coverage amounts can also be added for specific personal property. Endorsements can be added for: jewelry, watches, and furs-$0.85/$100/year; camera equipment-$1.35/$100/year; computer equipment-$0.95/$100/year; fine art and collectibles-$1.10/$100/year; firearms and accessories-$1.45/ $100/year; and portable tools-$3.25/$100/year. 7) A home with a market value of $320,000 is insured for $288,000 in a policy that contains an 80% coinsurance clause. Find the part of a loss due to fire that the insurance company will pay. A) $288,000 B) $3263 C) $320,000 D) $2900

2 8) Four people are injured in an auto accident, and each requires $24,000 for medical care. The driver has 100/300/100 vehicle insurance. Find the amount that the insurance company must pay and the amount that the insured must pay. A) $0, $72,000 B) $300,000, $4,000 C) $96,000, $0 D) $100,000, $4,000 Determine the tax rate. Round to the nearest hundredth or nearest cent. 9) Assessed property value: $49,800,000 Expenses to be funded by property tax: $2,402,000 Tax per amount of assessed value: mill A) mills B) mills C) 4.82 mills D) 2.07 mills 10) The formula for determining a property tax rate per $1.00 of assessed value is: A) total estimated budget divided by total assessed property value $100 B) total estimated budget divided by total assessed property value C) total estimated budget divided by total assessed property value mill rate D) total estimated budget divided by total assessed property value $1000 Determine the tax rate. Round to the nearest hundredth or nearest cent. 11) Assessed property value: $9,112,000 Expenses to be funded by property tax: $306,000 Tax per amount of assessed value: $1000 A) $3.36 per $1000 B) $33.58 per $1000 C) $2.98 per $1000 D) $29.78 per $1000 Find the property tax. Round to the nearest cent. 12) Assessed value Tax rate $42, % A) $ B) $ C) $ D) $ ) Rather than itemize expenses such as charitable contributions, interest, and taxes to arrive at taxable income the taxpayer may elect to take a: A) standard adjustment B) standard exemption C) standard deduction D) standard payment 2

3 Use the table to find the federal income tax. Round to the nearest cent. 14) Taxable income Filing status $107,542 Single A) $23, B) $20, C) $28, D) $19, Round to the nearest tenth of a cent when necessary. 15) Find the tax rate expressed as tax per $1.00 of assessed value in a municipality that has budgeted expenses of $5,660,000 and has property assessed at $404,960,000. A) cents per $1.00 assessed value B) 7.16 cents per $1.00 assessed value C) 1.40 cents per $1.00 assessed value D) 0.14 cents per $1.00 assessed value 3

4 Round to the nearest cent. 16) Dr. Henry Kril is filing his tax as a head of household. His taxable income is $205,788 and his W-2 form shows he has already paid $55,709. Calculate his tax refund or payment. A) $ refund B) $ refund C) $ payment D) $ payment 17) Henry's BBQ reported net sales of $295,243 and had average total assets of $155,297. Find its asset turnover ratio. Round to two decimal places. A) 0.90 to 1 B) 0.53 to 1 C) 0.47 to 1 D) 1.90 to 1 Express answers as a percent rounded to the nearest tenth. 18) The Garden Shop had a cost of goods sold of $108,000, operating expenses of $49,000, and net sales of $272,000. Find the cost of goods sold percent of net sales and operating expenses percent of net sales. A) cost of goods sold percent of net sales: 18.0%, operating expenses percent of net sales: 39.7% B) cost of goods sold percent of net sales: 39.7%, operating expenses percent of net sales: 18.0% C) cost of goods sold percent of net sales: 21.7%, operating expenses percent of net sales: 39.7% D) cost of goods sold percent of net sales: 39.7%, operating expenses percent of net sales: 21.7% 4

5 19) A horizontal analysis of a balance sheet: A) records the amount of increase or decrease as a percent B) all of these apply to a horizontal analysis of a balance sheet C) compares the same item for two different years D) records the amount of increase or decrease as a dollar figure Express answers as a percent rounded to the nearest tenth. 20) Complete a vertical analysis on the balance sheet for Jake's Janitorial Service for December 31 of last year. The company assets are cash $20,000, accounts receivable $48,000, merchandise inventory $89,000, and equipment $82,000. The liabilities are accounts payable $13,000, wages payable $16,000, and mortgage note payable $77,000. The owner's capital is $133,000. A) Jake's Janitorial Service Balance Sheet Accounts payable: 12.3% Wages payable: 15.1% Mortgage note payable: 32.2% Total liabilities: 44.4% B) Jake's Janitorial Service Balance Sheet Accounts payable: 5.4% Wages payable: 6.7% Mortgage note payable: 72.6% Total liabilities: 44.4% C) Jake's Janitorial Service Balance Sheet Accounts payable: 5.4% Wages payable: 6.7% Mortgage note payable: 32.2% Total liabilities: 44.4% D) Jake's Janitorial Service Balance Sheet Accounts payable: 12.3% Wages payable: 15.1% Mortgage note payable: 72.6% Total liabilities: 100% 21) When preparing a vertical analysis of an income statement, the "base" is gross sales. 5

6 Round to the nearest tenth. 22) Find the percent increase (or decrease) in net sales from last year to this year for the income statement. Percent Increase This Year Last Year (Percent Decrease) Gross Sales $1,712,000 $1,548,000 Returns and allowances $15,000 $9000 Net Sales $1,697,000 $1,539,000 Cost of Goods Sold $1,162,000 $1,036,000 Gross Profit $535,000 $503,000 Total Operating Expenses $89,000 $75,000 Net Income $446,000 $428,000 A) 10.3% increase B) 10.3% decrease C) 10.6% increase D) 10.6% decrease 23) Jake's Janitorial Service the company assets are cash $26,000, accounts receivable $60,000, merchandise inventory $70,000, equipment $96,000. The liabilities are accounts payable $19,000, wages payable $12,000; mortgage note payable $87,000. The owner's capital is $134,000. Find the percent of total debt compared to total assets. A) 46.8% B) 61.9% C) 53.2% D) 42.1% 24) What is the current ratio for Brinks, Inc., which has current assets of $136,677 and current liabilities of $104,628? Round to two decimal places. A) 1.31 to 1 B) 0.23 to 1 C) 0.31 to 1 D) 0.77 to 1 Round to the nearest cent. 25) Marc Banks paid $ for round-trip tickets to Hawaii. He paid sales tax at a rate of 4.25%. How much tax did he pay? A) $9.25 B) $ C) $12.09 D) $