Intro To Financial Math
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There is an 80% chance of rain. This means that there is
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A 4 out of 5 chance for rain
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A 5 out of 5 chance for rain
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A 2 out of 5 chance for rain
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A 3 out of 5 chance for rain
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About This Quiz
This quiz covers fundamental concepts of financial math, including operating expenses, income statements, cost of goods sold, and asset management.
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- 2.
Items owned by a person or business are
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Assets
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Net worth
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Liabilities
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Capital
Correct Answer
A. AssetsExplanation
Assets are items owned by a person or business that have value and can be used to generate income or provide future benefits. They can include tangible assets such as property, equipment, or inventory, as well as intangible assets like patents or trademarks. Net worth refers to the total value of a person or business's assets minus their liabilities. Liabilities are debts or obligations owed by a person or business, while capital refers to the financial resources used to start or operate a business. Therefore, the correct answer is assets.Rate this question:
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- 3.
Which of the following is not an example of a rational number?
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10
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6
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5
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Square root of 2
Correct Answer
A. Square root of 2Explanation
The square root of 2 is not an example of a rational number because it cannot be expressed as a fraction of two integers. A rational number is any number that can be written as the ratio of two integers, such as 10/1, 6/1, and 5/1. However, the square root of 2 is an irrational number, meaning it cannot be expressed as a fraction and has an infinite and non-repeating decimal representation.Rate this question:
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- 4.
The ____ on the check allows you to write the purpose of the check.
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Payee
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ABA number
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Routing number
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Memo
Correct Answer
A. MemoExplanation
The memo on the check allows you to write the purpose of the check. This can be used to provide additional information or instructions to the recipient of the check, such as specifying what the payment is for or any other relevant details. The memo field is typically located near the bottom left corner of the check and provides a space for you to include any necessary notes.Rate this question:
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- 5.
Which of the following factors will not impact the cost of your auto insurance?
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Driving violations
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Use of the car
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Color of the car
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Age of the driver
Correct Answer
A. Color of the carExplanation
The color of the car will not impact the cost of your auto insurance. Auto insurance rates are determined by factors such as driving violations, use of the car, and age of the driver. The color of the car does not affect the risk of accidents or insurance claims, so it is not considered when calculating insurance premiums.Rate this question:
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- 6.
You want to purchase new carpet for your living room that measures 20 feet by 10 feet. The carpet costs 4.50 per square foot. How much will your living room carpet cost?
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$900
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$1,200
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$600
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$1,000
Correct Answer
A. $900Explanation
To find the cost of the carpet, we need to calculate the area of the living room first. The area can be found by multiplying the length and width of the room, which gives us 20 feet x 10 feet = 200 square feet. Since the carpet costs $4.50 per square foot, we can multiply the area (200 square feet) by the cost per square foot ($4.50) to get the total cost. Therefore, the living room carpet will cost $900.Rate this question:
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- 7.
Credit that has interest accumulating on interest has
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Compounded interest
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Simple interest
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Revolving credit
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Usury rates
Correct Answer
A. Compounded interestExplanation
Compounded interest refers to the interest that is added to the principal amount and then earns interest itself. In other words, it is the interest that accumulates on the initial amount of credit as well as on any previously accumulated interest. This can result in significant growth of the total amount owed over time. Therefore, the given correct answer is "compounded interest".Rate this question:
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- 8.
The mode in this set is (10, 9, 9, 9, 8, 8, 7, 6, 4, 3, 3, 1)
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3
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9
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8
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10
Correct Answer
A. 9Explanation
The mode is the value that appears most frequently in a set of data. In this set, the number 9 appears three times, which is more than any other number. Therefore, the mode of this set is 9.Rate this question:
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- 9.
A current U.S. dollar is worth 0.77952 Euros. You are visiting France and purchase a shirt for 31.1808 Euros. What is the dollar cost of the shirt?
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$40
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$80
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$60
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$50
Correct Answer
A. $40Explanation
To find the dollar cost of the shirt, we need to divide the cost in Euros by the exchange rate. Dividing 31.1808 Euros by 0.77952 Euros/USD gives us approximately $40. Therefore, the dollar cost of the shirt is $40.Rate this question:
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- 10.
The person who rents an apartment is the
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Trustee
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Tenant
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Manager
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Lessor
Correct Answer
A. TenantExplanation
The correct answer is tenant because a tenant is someone who rents an apartment or property from a landlord or lessor. They have the right to occupy the premises for a specified period of time and are responsible for paying rent and following the terms of the lease agreement. The other options, such as trustee, manager, and lessor, do not accurately describe the person who rents an apartment.Rate this question:
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- 11.
What is the median for this set of numbers (55, 48, 42, 40, 38, 36, 34)?
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41
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40
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42
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38
Correct Answer
A. 40Explanation
The median is the middle value in a set of numbers when they are arranged in ascending or descending order. In this case, when the numbers (55, 48, 42, 40, 38, 36, 34) are arranged in ascending order, the middle value is 40. Therefore, the correct answer is 40.Rate this question:
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- 12.
The amount the business pays for the merchandise it sells is
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Net profit
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Cost of goods sold
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Gross profit
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Net gain
Correct Answer
A. Cost of goods soldExplanation
The cost of goods sold refers to the amount of money that a business pays for the merchandise it sells. It includes the cost of purchasing the goods, as well as any additional expenses incurred to bring the goods to a sellable condition. This is an important metric for businesses as it directly impacts their profitability. By subtracting the cost of goods sold from the revenue generated from sales, businesses can calculate their gross profit and determine the effectiveness of their pricing and inventory management strategies.Rate this question:
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- 13.
Amounts that a person owes financial institutions and department stores are
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Income
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Liabilities
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Capital
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Assets
Correct Answer
A. LiabilitiesExplanation
The correct answer is liabilities because amounts that a person owes financial institutions and department stores are considered debts or obligations, which are categorized as liabilities. Liabilities represent the financial obligations of an individual or entity and are recorded on the balance sheet. They can include loans, credit card debt, mortgages, or any other outstanding payments that need to be settled.Rate this question:
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- 14.
When a bank covers a check written for an amount greater than the balance in the account, they charge the customer a(n) _____ fee.
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Service
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Interest
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Account
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Overdraft
Correct Answer
A. OverdraftExplanation
When a bank covers a check written for an amount greater than the balance in the account, they charge the customer an overdraft fee. This fee is imposed as a penalty for the customer's insufficient funds and covers the bank's cost of processing the transaction.Rate this question:
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- 15.
One mile equals
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1,609.34 meters
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500 meters
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1,000 meters
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50 meters
Correct Answer
A. 1,609.34 metersExplanation
One mile is equivalent to 1,609.34 meters. This conversion factor is widely used in many countries around the world. Therefore, the correct answer is 1,609.34 meters.Rate this question:
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- 16.
A section of land is 560 acres. You have inherited three sections of land and charge a tenant $325 per acre each year for rent. How much does the tenant owe you for rent each year?
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$546,000
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$446,000
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$346,000
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$246,000
Correct Answer
A. $546,000Explanation
Since each section of land is 560 acres, and the tenant is charged $325 per acre each year for rent, the total rent for one section of land would be 560 acres * $325/acre = $182,000. Since the person inherited three sections of land, the total rent for all three sections would be $182,000 * 3 = $546,000. Therefore, the tenant owes $546,000 for rent each year.Rate this question:
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- 17.
You receive a trade discount of 15% for making a large order. Your order totals $1350.00. How much will you pay??
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$1,350.00
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$1,472.00
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$1,200.00
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$1,147.50
Correct Answer
A. $1,147.50Explanation
When you receive a trade discount of 15% for making a large order, it means that you will get a reduction of 15% off the total amount. To calculate the amount you will pay, you need to subtract the discount from the original total. In this case, the original total is $1350.00. So, you need to subtract 15% of $1350.00 from $1350.00. 15% of $1350.00 is $202.50. Subtracting $202.50 from $1350.00 gives you $1147.50, which is the amount you will pay.Rate this question:
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- 18.
Which of the following is not one of the C’s of credit?
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Collateral
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Charisma
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Capital
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Character
Correct Answer
A. CharismaExplanation
Charisma is not one of the C's of credit. The C's of credit typically refer to factors considered by lenders when assessing a borrower's creditworthiness. These factors include collateral, capital, and character. Collateral refers to assets that can be used as security for a loan, capital refers to the borrower's financial resources, and character refers to their reputation and credit history. Charisma, on the other hand, is a personal trait unrelated to credit assessment.Rate this question:
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- 19.
Stop payment order is
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A safeguard for a checking account
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A request that the bank not cash or process a specific check
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Another name for a joint account
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The amount you want to keep out of a deposit
Correct Answer
A. A request that the bank not cash or process a specific checkExplanation
A stop payment order is a request made to the bank to prevent the cashing or processing of a specific check. This is typically done when the account holder wants to prevent a specific payment from being made, such as in the case of a lost or stolen check, or if there is a dispute over the payment. The bank is then obligated to not honor the check and prevent it from being processed, providing a safeguard for the checking account holder.Rate this question:
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- 20.
An item that sells for $20.00 costs $21.40 with sales tax. What is the sales tax rate?
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5%
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8%
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7%
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6%
Correct Answer
A. 7%Explanation
The sales tax rate can be calculated by finding the difference between the total cost with tax and the original cost, and then dividing that difference by the original cost. In this case, the difference between $21.40 and $20.00 is $1.40. Dividing $1.40 by $20.00 gives us 0.07, which is equivalent to 7%. Therefore, the sales tax rate is 7%.Rate this question:
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- 21.
Calculate current ratio by
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Subtracting current liabilities from current assets
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Multiplying the amount of current assets by the amount of current liabilities
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Adding current assets and current liabilities
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Dividing the amount of current assets by the amount of current liabilities
Correct Answer
A. Dividing the amount of current assets by the amount of current liabilitiesExplanation
The current ratio is a measure of a company's ability to pay off its short-term liabilities using its short-term assets. It is calculated by dividing the amount of current assets by the amount of current liabilities. This ratio helps to assess the liquidity and financial health of a company. A higher current ratio indicates a stronger ability to meet short-term obligations, while a lower ratio may suggest potential liquidity issues.Rate this question:
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- 22.
How quickly assets can be turned to cash is called
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Fluid
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Volatility
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Liquidity
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Mobility
Correct Answer
A. LiquidityExplanation
Liquidity refers to how quickly assets can be converted into cash without impacting their market value. It is a measure of how easily an asset can be bought or sold in the market. The higher the liquidity, the easier it is to buy or sell an asset without causing significant price changes. In contrast, if an asset has low liquidity, it may take longer to convert it into cash or may require selling at a lower price. Therefore, liquidity is the appropriate term to describe the speed at which assets can be turned into cash.Rate this question:
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- 23.
The equation for simple interest is
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Principal – interest
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Principal x rate x time
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Principal + interest
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Principal x rate
Correct Answer
A. Principal x rate x timeExplanation
The equation for simple interest is calculated by multiplying the principal amount by the rate of interest and the time period. This is because the interest accrued is directly proportional to the principal, the rate at which interest is charged, and the duration for which the interest is applied. Therefore, the correct answer is principal x rate x time.Rate this question:
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- 24.
70 miles per hour equals
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35 kilometers (km) per hour
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112.65 kilometers (km) per hour
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65 kilometers (km) per hour
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210 kilometers (km) per hour
Correct Answer
A. 112.65 kilometers (km) per hourExplanation
To convert miles per hour to kilometers per hour, we need to multiply the value in miles per hour by the conversion factor of 1.60934. Therefore, 70 miles per hour is equal to 70 * 1.60934 = 112.65 kilometers per hour.Rate this question:
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- 25.
Purchase of big items like homes and automobiles are usually finance with
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Nonsecured loans
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Installment loans
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Retail credit
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Line of credit
Correct Answer
A. Installment loansExplanation
Big items like homes and automobiles are typically financed through installment loans. This type of loan allows borrowers to make regular payments over a set period of time, usually with a fixed interest rate. Unlike nonsecured loans, installment loans require collateral, such as the property or vehicle being financed. Retail credit and line of credit are not commonly used for large purchases like homes and automobiles.Rate this question:
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- 26.
Utilities, employee wages, and taxes are examples of
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Nonrecurring expenses
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Variable expenses
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Operating expenses
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Flexible expenses
Correct Answer
A. Operating expensesExplanation
Operating expenses refer to the regular and ongoing costs incurred by a business to maintain its daily operations. This includes expenses such as utilities, employee wages, and taxes. These expenses are necessary for the business to function and are typically recurring in nature. Unlike nonrecurring or one-time expenses, operating expenses are incurred regularly and are essential for the day-to-day functioning of the business. Therefore, operating expenses is the correct answer in this case.Rate this question:
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- 27.
You empty your piggy bank. You have 33 quarters, 6 half dollars, 82 dimes, 67 nickels, and 55 pennies. How much money do you have?
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$19.35
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$25.35
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$23.35
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$21.35
Correct Answer
A. $23.35 -
- 28.
“For deposit only” is an example of a
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Restrictive endorsement
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Blank endorsement
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Special endorsement
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Secondary endorsement
Correct Answer
A. Restrictive endorsementExplanation
A "restrictive endorsement" is when the payee of a check writes "For deposit only" on the back of the check, limiting its use to a specific purpose, such as depositing into their own bank account. This endorsement prevents the check from being cashed by anyone else and provides added security. A blank endorsement, on the other hand, is when the payee simply signs their name on the back of the check, making it payable to anyone who possesses it. A special endorsement is when the payee transfers the check to someone else by signing their name and specifying the new payee. A secondary endorsement is not a recognized term in relation to endorsements.Rate this question:
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- 29.
Dividing the amount of the current assets by the amount of current liabilities is the formula for
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Net worth
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Current ratio
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Credit worthiness
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Common cents
Correct Answer
A. Current ratioExplanation
The current ratio is a financial ratio that measures a company's ability to cover its short-term obligations with its short-term assets. By dividing the amount of current assets by the amount of current liabilities, this ratio provides insight into the liquidity of a company and its ability to meet its short-term financial obligations. It is widely used by investors and creditors to assess a company's financial health and its ability to pay off its debts.Rate this question:
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- 30.
When a person writes a check, realizing that they have insufficient funds and hoping they can make a deposit before the check is cashed is called
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Covering a check
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Clearing a check
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Borrowing
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Floating a check
Correct Answer
A. Floating a checkExplanation
Floating a check refers to the practice of intentionally writing a check when there are insufficient funds in the account, with the hope that the person will be able to deposit money before the check is presented for payment. This is a form of check kiting, which is illegal and considered fraudulent. By intentionally delaying the deposit of funds, the person is essentially using the time gap between writing the check and it being cashed to temporarily create the illusion of having enough funds in the account.Rate this question:
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- 31.
Assets that can be quickly converted to cash are
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Long-term
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Current
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Mutual funds
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Real estate
Correct Answer
A. CurrentExplanation
Current assets are assets that can be easily converted into cash within a short period of time, usually within one year. This includes cash and cash equivalents, accounts receivable, inventory, and short-term investments. Long-term assets, on the other hand, are assets that are expected to provide economic benefits for more than one year, such as property, plant, and equipment. Mutual funds and real estate can be considered long-term assets as they are not easily converted into cash. Therefore, the correct answer is "current" as it refers to assets that can be quickly converted to cash.Rate this question:
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- 32.
A personal check that the bank guarantees to be good is theWhich one do you like?
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Bank draft
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Cashier check
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Certified check
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Money order
Correct Answer
A. Certified checkExplanation
A certified check is a personal check that the bank guarantees to be good. This means that the bank verifies that the funds are available in the account and sets them aside to cover the check. The bank then stamps or signs the check to certify it, giving the recipient assurance that the check will not bounce. This makes a certified check a secure form of payment, especially for larger amounts, as the bank guarantees the funds.Rate this question:
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- 33.
The checking account number
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Is the ABA number
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Appears in bank coding at the bottom of the check
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Is not printed on the check
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Is the check number
Correct Answer
A. Appears in bank coding at the bottom of the checkExplanation
The checking account number appears in bank coding at the bottom of the check. This means that the ABA number, which is a unique identifier for the bank, can be found in the bank coding section at the bottom of the check. It is important to note that the checking account number is different from the check number, which is used to identify the specific check within a checkbook.Rate this question:
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- 34.
The numerical descriptive measure of a population is called
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The mode
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The mean
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The median
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The parameter
Correct Answer
A. The parameterExplanation
The correct answer is "the parameter". In statistics, a parameter is a numerical descriptive measure that represents a characteristic of a population. It is used to describe the entire population, rather than just a sample. The mode, mean, and median are measures of central tendency that describe a sample or a subset of the population, while the parameter provides information about the entire population.Rate this question:
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- 35.
Checks are ______ used to withdraw money from an account.
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Credit cards
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Debit cards
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Deposits
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Drafts
Correct Answer
A. DraftsExplanation
Drafts are commonly used to withdraw money from an account. Unlike credit cards and debit cards, which are primarily used for making purchases, drafts are specifically designed for withdrawing cash. Deposits, on the other hand, involve adding money to an account rather than taking it out. Therefore, drafts are the most suitable option for withdrawing money from an account.Rate this question:
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- 36.
Normally checks will not be honored after ____ months.
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12
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3
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2
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6
Correct Answer
A. 6Explanation
Checks typically have an expiration date, and it is common for checks to not be honored after a certain number of months. In this case, the correct answer is 6 months. After this period, banks may refuse to accept the check for payment as it may be considered stale or expired. This is done to protect against fraud and ensure that the check is still valid and the funds are available.Rate this question:
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- 37.
A recipe calls for two pints of cream. How many cups does this equal?
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6
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8
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3
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4
Correct Answer
A. 4Explanation
Two pints of cream is equal to four cups. In the US customary system, there are two cups in a pint, so if we have two pints, we can multiply that by two to get the total number of cups, which is four. Therefore, the correct answer is 4.Rate this question:
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- 38.
Assets – Liabilities =
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Current ratio
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Net income
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Net loss
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Net worth
Correct Answer
A. Net worthExplanation
Net worth is the correct answer because it is the difference between a person or organization's total assets and total liabilities. It represents the value of their ownership interest in their assets after deducting all debts and obligations. Net worth is a measure of financial health and is used to assess an individual or company's overall financial position.Rate this question:
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- 39.
How many ounces are in a two-liter bottle?
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40.8
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52.8
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38.8
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67.6
Correct Answer
A. 67.6Explanation
A two-liter bottle contains 67.6 ounces. This is a commonly known conversion in the United States, where a liter is equal to 67.6 fluid ounces.Rate this question:
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- 40.
You have just purchased 101.442 ounces of soda. How many liters have you purchased?
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4
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3.5
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3
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2
Correct Answer
A. 3Explanation
To convert ounces to liters, we need to know the conversion factor. Since 1 ounce is approximately equal to 0.0296 liters, we can multiply the number of ounces by this conversion factor. In this case, 101.442 ounces multiplied by 0.0296 liters per ounce gives us approximately 3 liters. Therefore, if you have purchased 101.442 ounces of soda, you have purchased approximately 3 liters.Rate this question:
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- 41.
The ______ lists payments and deposits processed by the bank during a month and the balance of your checking account according to the bank.
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Income statement
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Bank statement
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Balance sheet
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Net worth statement
Correct Answer
A. Bank statementExplanation
A bank statement is a document provided by the bank that lists all the payments and deposits made by the account holder during a specific period, usually a month. It also shows the balance of the checking account according to the bank. This statement is important for individuals to keep track of their financial transactions and ensure accuracy in their account balance. It helps in reconciling the account and identifying any discrepancies or unauthorized transactions.Rate this question:
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- 42.
Money put into a checking account is called aWhich one do you like?
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Net gain
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Credit
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Liability
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Demand deposit
Correct Answer
A. Demand depositExplanation
A demand deposit refers to money that is deposited into a checking account. It is called a demand deposit because the account holder can withdraw the funds on demand, meaning they can access and use the money whenever they need it. This type of account is typically used for everyday financial transactions, such as paying bills and making purchases. Therefore, the correct answer is demand deposit.Rate this question:
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- 43.
You pay your credit card bill. This transaction requires you to
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Debit the Liability (credit card bill) and credit the Asset (cash)
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Debit Cash and the Credit Card Bill
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Credit Cash and the Credit Card Bill
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Write off the debt only
Correct Answer
A. Debit the Liability (credit card bill) and credit the Asset (cash)Explanation
When you pay your credit card bill, you need to debit the Liability (credit card bill) because you are reducing the amount you owe to the credit card company. At the same time, you need to credit the Asset (cash) because you are using your cash to make the payment. This transaction reflects a decrease in your liability and a decrease in your cash asset.Rate this question:
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- 44.
The person authorized to write checks is theWhich one do you like?
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Maker
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Payee
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Creditor
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Endorser
Correct Answer
A. MakerExplanation
The person authorized to write checks is referred to as the "maker". The maker is the individual who has the authority to sign and issue checks on behalf of a company or organization. They are responsible for ensuring that the necessary funds are available in the account and that the check is properly filled out and signed. The maker is typically a designated member of the organization's management or finance team.Rate this question:
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- 45.
NSF is printed on a check that
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Has bounced
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Has been paid
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Has been processed
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Has cleared the ban
Correct Answer
A. Has bouncedExplanation
NSF stands for "Non-Sufficient Funds". When NSF is printed on a check, it means that the check has bounced, indicating that the account holder did not have enough funds in their account to cover the payment. This can happen if the account holder has insufficient funds, has closed their account, or if there is a hold or freeze on their account. As a result, the payment is not processed and the check is returned unpaid.Rate this question:
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- 46.
The person authorized to write checks on an account is the
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Router
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Payee
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Endorser
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Maker
Correct Answer
A. MakerExplanation
The person authorized to write checks on an account is referred to as the "maker." This individual has the authority to create and sign checks, authorizing the transfer of funds from the account to the designated payee. The maker is responsible for ensuring that the necessary funds are available in the account before issuing the check.Rate this question:
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- 47.
The ____ can be purchased at a bank, service stations, and supermarkets to individuals who do not wish to use cash and do not have a checking account.
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Credit card
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Money order
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Debit card
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Bank draft
Correct Answer
A. Money orderExplanation
A money order is a form of payment that can be purchased at various locations such as banks, service stations, and supermarkets. It is a popular option for individuals who do not want to use cash and do not have a checking account. Unlike a credit card or debit card, a money order is a prepaid instrument that allows the individual to make a payment without the need for a bank account or credit history. It provides a secure and convenient way to make payments for those who prefer not to carry cash or use traditional banking methods.Rate this question:
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- 48.
A three-liter bottle is half full. How many ounces are left?
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45.873
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48.873
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52.873
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50.721
Correct Answer
A. 50.721Explanation
The answer 50.721 is obtained by converting the volume of the three-liter bottle to ounces. Since there are 33.814 ounces in a liter, the three-liter bottle contains 101.442 ounces. As the bottle is half full, there are 50.721 ounces left.Rate this question:
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- 49.
A person or institution that holds or generally manages the property is the
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Trustee
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Tenant
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Heir
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Executor
Correct Answer
A. TrusteeExplanation
A trustee is a person or institution that holds or generally manages the property. They are responsible for ensuring that the property is used and managed in accordance with the wishes and best interests of the beneficiaries. They have a fiduciary duty to act in the best interests of the beneficiaries and are often appointed to manage assets in a trust or estate.Rate this question:
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Jan 17, 2024Quiz Edited by
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