1.
To calculate an employee’s overtime rate
Correct Answer
D. Multiply the regular pay rate by 1.5
Explanation
To calculate an employee's overtime rate, you need to multiply the regular pay rate by 1.5. This is because overtime pay is typically 1.5 times the regular pay rate. Therefore, multiplying the regular pay rate by 1.5 will give you the correct overtime rate for the employee.
2.
Which of the following is NOT a step in finding the gross wages for an employee who has worked both regular time and overtime hours?
Correct Answer
A. Find the employeeâ€™s average annual income over the past 3 years
3.
Which of the following describes how to calculate net pay?
Correct Answer
C. Subtract the total deductions from the gross pay.
Explanation
To calculate net pay, you need to subtract the total deductions from the gross pay. Net pay is the amount of money an individual receives after all deductions such as taxes, insurance, and retirement contributions have been taken out. Subtracting the total deductions from the gross pay gives you the final amount that the individual will actually receive as their take-home pay.
4.
Which of the following best describes how compound interest works?
Correct Answer
C. Interest is calculated from the previous interest along with the principal.
Explanation
Compound interest is a concept where the interest is calculated not only on the initial principal amount but also on the accumulated interest from previous periods. This means that as time goes on, the interest earned becomes part of the principal and generates additional interest. In other words, the interest is compounded, leading to exponential growth of the investment or debt. Therefore, the correct answer is that interest is calculated from the previous interest along with the principal.
5.
If the principal and the amount of interest for one year are known, the rate of interest can be found by
Correct Answer
C. Dividing the interest for one year by the principal.
Explanation
To find the rate of interest, we need to divide the interest for one year by the principal. This is because the rate of interest is calculated as a percentage of the principal. By dividing the interest by the principal, we can determine what percentage of the principal the interest represents, which gives us the rate of interest.
6.
A deposit slip lists these items: (bills) 8 fifties, 22 twenties, 9 tens, 30 fives; (coins) 24 dimes, 18 nickels, 90 pennies; (checks) $45.67, $99.12. The depositor received no cash back. What total deposit was made?
Correct Answer
A. $1,228.99
Explanation
The correct answer is $1,228.99. This can be calculated by adding up the amounts of bills, coins, and checks listed in the deposit slip. The total amount of bills is $8x50 + 22x20 + 9x10 + 30x5 = $400 + $440 + $90 + $150 = $1,080. The total amount of coins is 24x0.10 + 18x0.05 + 90x0.01 = $2.40 + $0.90 + $0.90 = $4.20. The total amount of checks is $45.67 + $99.12 = $144.79. Adding these amounts together, $1,080 + $4.20 + $144.79 = $1,228.99, which is the total deposit made.
7.
Todd Smith paid $885.60 in interest on a 12-month note for $8,200. What rate of interest did Todd pay on the note?
Correct Answer
B. 10.8
Explanation
Todd Smith paid $885.60 in interest on a 12-month note for $8,200. To find the rate of interest, we can use the formula: Interest = Principal x Rate x Time. Plugging in the given values, we have: 885.60 = 8200 x Rate x 1 year. Solving for the rate, we get Rate = 885.60 / (8200 x 1) = 0.108 = 10.8%. Therefore, Todd paid an interest rate of 10.8% on the note.
8.
Which method are most companies LEAST likely to use to record the number of hours their employees work?
Correct Answer
D. Employees keep track of their hours worked mentally.
Explanation
Most companies are least likely to use the method of employees keeping track of their hours worked mentally. This is because it is a subjective and unreliable method, prone to errors and inaccuracies. Companies prefer more objective and accurate methods such as using magnetic stripe cards, time clocks, or time sheets, which provide a more precise record of the number of hours worked by employees.
9.
Which type of employee is most likely to earn a base salary plus commission?
Correct Answer
C. A salesperson
Explanation
A salesperson is most likely to earn a base salary plus commission because their job primarily involves selling products or services. Commission is a common form of incentive for salespeople, where they earn a percentage of the sales they generate. This motivates them to work harder and sell more, as their earnings are directly tied to their performance. In addition to the base salary, commission provides an opportunity for salespeople to earn additional income based on their sales achievements.
10.
Which of the following is an example of a job benefit?
Correct Answer
D. All of the above
Explanation
All of the options mentioned - paid holidays, recreational facilities, and child care - are examples of job benefits. Paid holidays refer to the days off that an employee is entitled to with full pay. Recreational facilities include amenities provided by the employer for employees to relax and engage in recreational activities. Child care refers to the provision of daycare services or assistance with child care expenses by the employer. Therefore, all three options are examples of job benefits.
11.
What is the primary reason for writing a budget?
Correct Answer
D. To help allocate future income
Explanation
The primary reason for writing a budget is to help allocate future income. A budget allows individuals or organizations to plan and prioritize their spending based on their income. By creating a budget, one can determine how much money should be allocated to different categories such as savings, expenses, and investments. This helps in ensuring that money is used efficiently and that financial goals are met.
12.
Which of the following is NOT a heading in a check register?
Correct Answer
A. Interest rate
Explanation
A check register is a document used to keep track of transactions made through a checking account. It typically includes headings such as check number, balance, and transaction. However, "interest rate" is not a heading typically found in a check register. Interest rate refers to the percentage charged by a financial institution for borrowing money, which is not directly relevant to the purpose of a check register.
13.
What is the name for the personalized password that each customer must enter before making ATM transactions?
Correct Answer
C. PIN
Explanation
A Personal Identification Number (PIN) is a unique password that each customer must enter before making ATM transactions. It is used to authenticate the customer's identity and ensure the security of their transactions.
14.
Which of the following reasons best describes why a seller adds a finance charge to the cash price when calculating the installment price?
Correct Answer
B. To cover the extra cost of doing business on the installment plan.
Explanation
A seller adds a finance charge to the cash price when calculating the installment price in order to cover the extra cost of doing business on the installment plan. This includes expenses such as administrative costs, credit checks, and potential defaults on payments. By adding a finance charge, the seller ensures that they are able to recoup these additional costs associated with offering financing options to customers.
15.
Jenny is having a party. A bowl of jello serves 12 people. She is expecting 78 guests. How many bowls of jello do I need to buy?
Correct Answer
D. 7
Explanation
To calculate the number of bowls of jello needed, we divide the total number of guests by the number of people a bowl of jello serves. In this case, 78 guests divided by 12 people per bowl equals 6.5. Since we cannot have a fraction of a bowl, we need to round up to the nearest whole number. Therefore, Jenny needs to buy 7 bowls of jello.
16.
â€‹Sam buys a Nissan Altima for $27,735.00 at 7% interest on a 9 year loan, his monthly payment will be: $346.86. What will the actual cost be to own the car?
Correct Answer
B. 37,460.88
Explanation
The actual cost to own the car will be higher than the purchase price due to the interest on the loan. To calculate the actual cost, we need to multiply the monthly payment by the number of months in the loan term. In this case, the loan term is 9 years, which is equivalent to 108 months. Therefore, the actual cost to own the car will be $346.86 x 108 = $37,460.88.
17.
How many weeks and days are in a year?
Correct Answer
A. 52; 365
Explanation
There are 52 weeks and 365 days in a year. This is because there are 7 days in a week and 365 days in a non-leap year. Therefore, when you divide 365 by 7, you get 52 weeks with 1 day remaining.
18.
What is a consumer?
Correct Answer
B. Person that purchases goods or services for personal use
Explanation
A consumer is defined as a person who purchases goods or services for personal use. This individual is not buying the goods to sell them at a higher price or selling goods to others. The focus is on the act of purchasing for personal consumption rather than any commercial or entrepreneurial motive.