1.
To calculate an employee’s time-and-a-half pay rate
Correct Answer
D. Multiply the regular pay rate by 1.5
Explanation
To calculate an employee's time-and-a-half pay rate, you need to multiply the regular pay rate by 1.5. This is because time-and-a-half pay means that the employee is being paid 1.5 times their regular pay rate for the hours worked beyond their normal working hours.
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. This is because deductions such as taxes, insurance, and retirement contributions are subtracted from the gross pay to determine the final amount an employee takes home. By subtracting the total deductions from the gross pay, you are left with the net pay, which is the actual amount the employee receives after all deductions have been taken into account.
4.
Which of the following best describes how compound interest works?
Correct Answer
A. Interest is calculated only on previously earned interest
Explanation
Compound interest involves the calculation of interest not only on the initial principal amount but also on any interest that has been previously earned and added to the principal. As time progresses, the interest earned can increase because it is calculated on the growing total amount, which includes both the principal and any previously earned interest. Compound interest can lead to the exponential growth of savings or the accumulation of debt, depending on whether you are saving or borrowing.
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 amount. By dividing the interest for one year by the principal, we can determine what percentage of the principal is represented by the interest.
6.
The purchase price of a new van was $22,980. The sales tax rate in the state was 5.5%, and registration fees came to $133. There was also a $1,500 manufacturer’s rebate on the van. If the customer put a down payment of $2,200 toward the purchase, what was the delivered price?
Correct Answer
B. $22,876.90
Explanation
The delivered price of the van can be calculated by subtracting the manufacturer's rebate and the down payment from the purchase price, and then adding the sales tax and registration fees. Therefore, the delivered price is $22,980 - $1,500 - $2,200 + $133 = $22,876.90.
7.
Michael Valerski had these cash receipts for the week of September 12: paycheck, $562.14; mail in rebate, $75; birthday gift, $100; refund from returned merchandise, $42.67. Complete a cash receipts record to find Michael’s total receipts for the week.
Correct Answer
A. $779.81
Explanation
To find Michael's total receipts for the week, we need to add up all the cash receipts he had. Adding $562.14 (paycheck) + $75 (mail in rebate) + $100 (birthday gift) + $42.67 (refund from returned merchandise) gives us a total of $779.81. Therefore, the correct answer is $779.81.
8.
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 deposit slip lists the amounts of bills, coins, and checks that were deposited. To find the total deposit, we need to add up all the amounts. The bills add up to $8 * $50 + 22 * $20 + 9 * $10 + 30 * $5 = $400 + $440 + $90 + $150 = $1080. The coins add up to 24 * $0.10 + 18 * $0.05 + 90 * $0.01 = $2.40 + $0.90 + $0.90 = $4.20. The checks add up to $45.67 + $99.12 = $144.79. Adding all these amounts together, we get $1080 + $4.20 + $144.79 = $1228.99. Therefore, the total deposit made was $1,228.99.
9.
Todd Smith paid $2,500 in interest on a 5 year note for $10,000. What rate of interest did Todd pay on the note?
Correct Answer
B. 5
Explanation
Todd Smith paid $2,500 in interest on a $10,000 note over 5 years. To find the rate of interest, we can divide the interest paid by the principal amount and then divide by the number of years. In this case, $2,500 / $10,000 = 0.25. Then, 0.25 / 5 = 0.05 or 5%. Therefore, Todd paid a 5% rate of interest on the note.
10.
A bank loaned Peggy Chalmers $3,000 at 13.5% ordinary interest for 90 days. Find the amount of interest she owed on the loan.
Correct Answer
C. $101.25
Explanation
Peggy Chalmers borrowed $3,000 at an interest rate of 13.5% for 90 days. To find the amount of interest owed on the loan, we can use the formula: Interest = Principal * Rate * Time. Plugging in the values, we get: Interest = $3,000 * 0.135 * (90/365) = $101.25. Therefore, the correct answer is $101.25.
11.
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 because it is prone to errors and can be easily manipulated. Using a magnetic stripe card, time clock, or time sheet provides a more accurate and reliable way to record the number of hours worked by employees. These methods create a physical record that can be easily verified and audited, ensuring accurate payment and tracking of working hours.
12.
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 is directly related to generating sales and revenue for the company. Commission is often used as an incentive to motivate salespeople to perform well and exceed their sales targets. This type of compensation structure allows salespeople to earn additional income based on their performance, giving them the opportunity to earn more than just a fixed salary. On the other hand, a construction worker, waitress, and lawyer typically have different job responsibilities that are not directly tied to sales performance, so they are less likely to earn commission.
13.
Which of the following is an example of a job benefit?
Correct Answer
D. All of the above
Explanation
The correct answer is "All of the above" because all of the options listed - paid holidays, recreational facilities, and child care - are examples of job benefits. Job benefits are additional perks or advantages that employees receive in addition to their regular salary or wages. These benefits are provided by employers to attract and retain employees, and they can vary depending on the company and industry. In this case, all three options mentioned are commonly offered as job benefits to enhance employee satisfaction and work-life balance.
14.
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 and financial goals. By creating a budget, one can determine how much money should be allocated to different expenses such as bills, savings, investments, and discretionary spending. This helps to ensure that income is used efficiently and effectively, allowing for better financial management and the ability to achieve long-term financial objectives.
15.
Which of the following is NOT a heading in a check register?
Correct Answer
A. Interest rate
Explanation
The question asks for a heading that is NOT found in a check register. A check register is a record of all transactions related to a checking account. It typically includes headings such as check number, balance, and transaction. However, the interest rate is not a heading in a check register. Interest rate refers to the percentage charged by a financial institution for borrowing money, and it is not directly related to the recording of transactions in a check register.
16.
What is the name for the personalized password that each customer must enter before making ATM transactions?
Correct Answer
C. PIN
Explanation
A personalized password that each customer must enter before making ATM transactions is known as a PIN. This acronym stands for Personal Identification Number and is used to authenticate the user's identity and ensure the security of their transactions.
17.
Which method are most companies LEAST likely to use to record the number of hours their employees work?
Correct Answer
C. Net deposit
Explanation
Most companies are least likely to use the method of "net deposit" to record the number of hours their employees work. Net deposit refers to the amount of money an employee receives after deductions such as taxes, insurance, and other withholdings have been taken out. Recording the number of hours worked based on net deposit would not provide an accurate representation of the actual hours worked, as it does not take into account these deductions. Companies usually use methods such as total deposit, final deposit, or gross deposit, which provide a more comprehensive view of the hours worked and the corresponding compensation.