The document contains 31 multiple choice questions related to business, finance, and accounting concepts such as discounts, percentages, profit/loss calculations, time value of money, and taxation. Key details assessed include commission structures, interest rates, salary calculations, investment amounts needed to achieve target future values, and determining taxable income.
The document contains 31 multiple choice questions related to business, finance, and accounting concepts such as discounts, percentages, profit/loss calculations, time value of money, and taxation. Key details assessed include commission structures, interest rates, salary calculations, investment amounts needed to achieve target future values, and determining taxable income.
The document contains 31 multiple choice questions related to business, finance, and accounting concepts such as discounts, percentages, profit/loss calculations, time value of money, and taxation. Key details assessed include commission structures, interest rates, salary calculations, investment amounts needed to achieve target future values, and determining taxable income.
The document contains 31 multiple choice questions related to business, finance, and accounting concepts such as discounts, percentages, profit/loss calculations, time value of money, and taxation. Key details assessed include commission structures, interest rates, salary calculations, investment amounts needed to achieve target future values, and determining taxable income.
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1. Marked price of a fan is $850, it is sold for $800.
Percentage discount allowed is
a. 0.065 b. 0.07 c. 0.058 d. 0.09 2. Sara bought a shirt for $135 and sold it for $110 to her friend. Her loss percentage is a. 0.185 b. 0.23 c. 0.2 d. 0.176 3. Printed price on wrapper or tag of item is known as a. Market price b. Sales price c. List price d. Discount 4. John and Peter purchased Computer with an investment of $16, 000 and $20, 000 respectively. They earned a profit of $5000. share of each should be a. $2,222 and $2,778 b. $2,000 and $3,000 c. $1,800 and $3,200 d. $2,500 and $2,500 5. A man sold a fan for Rs. 465. Find the cost price if he incurred a loss of 7%. Solution: CP = [100 / (100 – Loss %)] * SP Therefore, the cost price of the fan = (100/93)*465 = Rs. 500 6. In a transaction, the profit percentage is 80% of the cost. If the cost further increases by 20% but the selling price remains the same, how much is the decrease in profit percentage? Solution: Let us assume CP = Rs. 100. Then Profit = Rs. 80 and selling price = Rs. 180. The cost increases by 20% → New CP = Rs. 120, SP = Rs. 180. Profit % = 60/120 * 100 = 50%. Therefore, Profit decreases by 30%. 7. A man bought some toys at the rate of 10 for Rs. 40 and sold them at 8 for Rs. 35. Find his gain or loss percent. Solution: Cost price of 10 toys = Rs. 40 → CP of 1 toy = Rs. 4. Selling price of 8 toys = Rs. 35 → SP of 1 toy = Rs. 35/8 Therefore, Gain = 35/8 – 4 = 3/8. Gain percent = (3/8)/4 * 100 = 9.375% 8. Gary and Henry brought an equal amount of money for shopping. Gary spent $95 and Henry spent $350. After that Henry had 4/7 of what Gary had left. How much money did Gary have left after shopping? 350 – 95 = 255 3 units = 255 1 unit = 255 ÷ 3 = 85 7 units = 85 × 7 = 595 Answer: Gary has $595 after shopping. 9. 1/9 of the shirts sold at Peter's shop are striped. 5/8 of the remainder are printed. The rest of the shirts are plain colored shirts. If Peter's shop has 81 plain colored shirts, how many more printed shirts than plain colored shirts does the shop have? Answer: Peter's shop has 54 more printed colored shirts than plain shirts. 10. Jenny’s mom says she has an hour before it’s bedtime. Jenny spends 3/5 of the hour texting a friend and 3/8 of the remaining time brushing her teeth and putting on her pajamas. She spends the rest of the time reading her book. How long did Jenny read? Answer: 15 minutes 11. For every 2,000 jars that a company ships, an average of 5 jars break during transit. If the company ships 10,000 jars, how many jars can be expected to break during transit? Answer: 25 jars 12. A farmer has enough corn to feed 400 hens for 30 days. If he buys 100 more hens, how long will the same amount of corn be consumed? Answer: 24 days 13. There is a 20 litres of a solution which has 20% of bleach. Extra bleach is added to it to make it to 50% bleach solution. How much water has to be added further to bring it back to 20% bleach solution? Answer: 48 litres of water has to be added to the solution if bleach has to be 20% of the whole solution 14. Archie bought a laptop and was charged Php 5,400 for 12% VAT. How much did it cost him to buy the laptop? Answer: P50,400 15. Rickson was able to sell a house and lot for Php 4,500,000. If he earned a commission of Php 157,500. What is the rate of commission? Answer: 3.5% 16. Mr. GD received an invoice dated February 16, 2019 amounting to Php 85,000 for his orders of fertilizer. The invoice comes with the cash discount terms 5/5, 2/15, n/30. If Mr. GD paid on March 1, 2019, how much did he pay? Answer: Php 83,300 17. Sung Kyung, a Grade 12 student, is earning extra income through direct selling. She sells cosmetics to her neighbors in Gwangju. She orders from her suppliers in Seoul. Last week, she ordered products worth 3,280,000 KRW, prior to any discount. Yesterday, she received the products and the invoice with the terms FOB Seoul, 18% trade discount. She also received another invoice amounting to 120,000 KRW for the shipping. How much should Sung Kyung pay to her suppliers? Answer: 2,809,600 KRW 18. Fe owns a company that manufactures batteries. Based on the report of past productions, 8% of the batteries made are defective and cannot be sold. Fe’s production team made 9,500 batteries. It costs Php 14 to produce one battery. If he wants a 35% markup on selling price (margin), what should Fe price each battery to make her target markup? Answer: Php 23.41
A defense contractor has been able to summarize its total annual fixed costs as $100,000 and the total variable cost per unit of production as $33.
19. If only 5000 units is all that is expected to sell to the government this year what should the per unit selling price be to make a %25 profit this year? Answer: Total costs = 100000 + 5000(33) = 265000 % profit = 100(revenue – cost)/cost Therefore, 25 = 100(revenue – 265000)/265000 or, revenue = 265000(1.25) = 331250 Selling price = 331250/5000 = $66.25 / unit 20. If foreign sales of 3000 units per year is to be added to the 5000 units government contract above and a %25 profit is acceptable for this contractor again, what could be the new selling price per unit? Answer: Total cost = 100000 + 8000(33) = 364000 Revenue for 25% profit = 364000(1.25) = 455000 New selling price = 455000/8000 = $56.875 per unit. 21. Irene works as a sales director in a company that sells beauty products. She receives a monthly salary of Php 39,800 plus 6% commission on monthly net sales in excess of Php 50,000. However, she will only receive the accumulated commissions from January to May during her June payday. She will receive the accumulated commissions from June to December during her January payday. Shown below is a record of her monthly net sales for the year 2019. Month Net Sales (in Php) July 286,500 January 103,460 August 89,060 February 185,540 September 145,680 March 99,530 October 102,340 April 121,380 November 186,550 May 109,980 December 349,800 June 360,210 22. 23. How much Irene’s gross monthly earnings during June 2019? Answer: Php 61,993.40 24. How much Irene’s gross monthly earnings during January 2020? Answer: Php 110,008.40 25. Seulgi paid a total of Php 192,696 to settle her loan after 9 months. If the simple interest rate is 4.8%, how much did Marivic originally borrow? Answer: Php 186,000 26. How much Mingyu should invest today in a bank that returns 5.15% interest compounded quarterly so that he can have Php 400,000 in 5 years? Answer: Php 309,701.25 27. Mr. DK has received a job offer from a large investment bank as an accountant. His base salary will be $35,000 constant to date of retirement. He will receive his first annual salary payment one year from the day he begins to work. In addition, he will get an immediate $10,000 bonus for joining the company. Mr. DK is expected to work for 25 years. What is the present value of the offer if the discount rate is 12 percent? Answer: $284,509.87 28. You have won the lottery! The lottery officials offer you two choices for collecting your winnings. You may take (A) four payments of $250,000 over the next four years or, (B) you may take a one-time payment of $750,000 today. Which would you take? Answer: Option A. $792,466.36 29. A clerk earns a salary of PhP20,000 per month. Assuming that he works 8 hours a day for a 20-day work month, how much does per hour? Answer: PhP125
Haru is a resident citizen, earning purely business income for 2018 taxable year: Gross sales P2,800,000 Cost of Sales 1,200,000 Operating Expenses 650,000 Creditable withholding tax 80,000 30. How much is the taxable income? Answer: Php 950,000 31. How much is the income tax payable? Answer: 95,000
Clincher: 1. It is given if an employee works for more than the required number of hours of work per day. a) De Minimis Benefits b) Premium Pay c) Overtime Pay d) Night shift differential 2. A 5-year ordinary annuity has a future value of $1,000. If the interest rate is 8 percent, the amount of each annuity payment is closest to which of the following? Answer: $170.44
