# The Ultimate Business Math Test Quiz #5

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Arno
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Quizzes Created: 1 | Total Attempts: 242
Questions: 10 | Attempts: 242

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• 1.

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

• A.

R100.00

• B.

R105.00

• C.

R110.50

• D.

I don't know

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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• 2.

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

• A.

3.80%

• B.

5.00%

• C.

4.00%

• D.

I don't know

C. 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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• 3.

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

• A.

25.00%

• B.

30.00%

• C.

32.00%

• D.

I don't know

B. 30.00%
Explanation
Gross Profit Margin = Sales Price â€“ Unit Cost = R20.00 â€“ 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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• 4.

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

• A.

A R20,000 Unfavourable overrun against budget

• B.

A R20,000 Favourable overrun against budget

• C.

A R20,000 Favourable saving against budget

• D.

I don't know

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.

### What is 20% of R100.00 ?

• A.

R20.00

• B.

R22.00

• C.

R2.00

• D.

I don't know

A. R20.00
Explanation
Simple percentage
20% x R100.00 = 0.2 x 100 = 20%

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• 6.

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

• A.

R18.00 discount at 19.85%

• B.

R17.53 discount at 16.88%

• C.

R18.20 discount at 18.53%

• D.

I don't know

C. 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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• 7.

• A.

R300,000

• B.

R250,000

• C.

R200,000

• D.

I don't know

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

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• 8.

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

• A.

9.33%

• B.

9.00%

• C.

8.50%

• D.

I don't know

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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• 9.

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

• A.

2 : 1

• B.

1.56 : 1.2

• C.

1.39 : 1

• D.

I don't know

C. 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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• 10.

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

• A.

35.00%

• B.

40.00%

• C.

38.00%

• D.

I don't know

B. 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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• Current Version
• Apr 14, 2023
Quiz Edited by
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• Oct 30, 2015
Quiz Created by
Arno

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