The Ultimate Business Math Test Quiz #5

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Arno
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Quizzes Created: 1 | Total Attempts: 555
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  • 1/10 Questions

    What is 20% of R100.00 ?

    • R20.00
    • R22.00
    • R2.00
    • I don't know
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About This Quiz

The Ultimate Business Math Test Quiz #5 assesses key financial skills such as calculating VAT exclusions, revenue growth, markup, budget variances, percentage calculations, and discounts. It's designed to enhance practical business math understanding, crucial for financial decision-making.

The Ultimate Business Math Test Quiz #5 - Quiz

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  • 2. 

    Your Business's Assets are R500,000 Your Business's Liabilities are R200,000What is the net worth of your business ?

    • R300,000

    • R250,000

    • R200,000

    • I don't know

    Correct Answer
    A. R300,000
    Explanation
    Net worth = Assets less Liabilities
    R300,000 = R500,000 less R200,000

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  • 3. 

    You sold your product for R80.00 which normally sold for R98.20What was your discount ?

    • R18.00 discount at 19.85%

    • R17.53 discount at 16.88%

    • R18.20 discount at 18.53%

    • I don't know

    Correct Answer
    A. R18.20 discount at 18.53%
    Explanation
    Discount = Normal price less discounted price
    R98.20 less R80.00 = R18.20
    R18.20 / R80.00 = 18.53% discount

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  • 4. 

    Your salaries budget was R500,000.00You landed up spending R520,000.00What was the actual versus budget variance ? 

    • A R20,000 Unfavourable overrun against budget

    • A R20,000 Favourable overrun against budget

    • A R20,000 Favourable saving against budget

    • I don't know

    Correct Answer
    A. A R20,000 Unfavourable overrun against budget
    Explanation
    Actual less Budget = Variance
    R520,000.00 less R500,000.00 = R20,000 overrun
    If actual costs are greater than budgeted costs you have a negative variance
    It means you spent more than you expected which results in an overrun against budget

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  • 5. 

    You buy an article for R114.00 including VAT at 14%.What did it cost you exclusive of VAT ?

    • R100.00

    • R105.00

    • R110.50

    • I don't know

    Correct Answer
    A. R100.00
    Explanation
    To arrive at the exclusive VAT amount : R114.00 x 14/114 = R100.00 |
    R100.00 exclusive of VAT + 14% = R114.00

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  • 6. 

    You generated R500,000 in revenue.Your Cost of Sales was R300,000.What is your Gross profit margin 

    • 35.00%

    • 40.00%

    • 38.00%

    • I don't know

    Correct Answer
    A. 40.00%
    Explanation
    Revenue less Cost of Sales = Gross Profit
    Gross profit / Revenue = Gross Profit Margin
    (R500,000 less R300,0000) = R200,000 / R500,000 = 40%

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  • 7. 

    Your revenue grew from R5m per annum to R5.2m.What was your revenue growth ?

    • 3.80%

    • 5.00%

    • 4.00%

    • I don't know

    Correct Answer
    A. 4.00%
    Explanation
    Rand value growth = R5.2m - R5m = R0.2m
    Percentage growth = R0.2 / R5.0m = 4.00%
    (New Less Old) / (Old)

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  • 8. 

    Your Current Assets are R250,000 compared to R180,00 in Current Liabilities.What is your the ratio of Current assets to Current Liabilities ?

    • 2 : 1

    • 1.56 : 1.2

    • 1.39 : 1

    • I don't know

    Correct Answer
    A. 1.39 : 1
    Explanation
    Current Assets to Current Liabilities
    250,000 : 180,000
    CA: 250,000 / 180,000 = 1.39
    CL: 180,000 / 180,000 = 1
    1.39 : 1

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  • 9. 

    Last year you paid R120.00 for a product and this year it cost you R131.20What is the rate of inflation ?

    • 9.33%

    • 9.00%

    • 8.50%

    • I don't know

    Correct Answer
    A. 9.33%
    Explanation
    New price less Old price / (Old price)
    R131.20 less R120 = R11.20
    R11.20 / R120 = 9.33% rate of inflation

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  • 10. 

    You sell your product for R20.00 which cost you R15,40What is your markup ? 

    • 25.00%

    • 30.00%

    • 32.00%

    • I don't know

    Correct Answer
    A. 30.00%
    Explanation
    Gross Profit Margin = Sales Price – Unit Cost = R20.00 – R15.40 = R4.60

    Markup Percentage = Gross Profit Margin/Unit Cost = R4.60 / R15.40 = 30%.

    So you sold you product at a 30% markup on what it cost you.

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Quiz Review Timeline (Updated): Apr 14, 2023 +

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  • Current Version
  • Apr 14, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 30, 2015
    Quiz Created by
    Arno
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