Want A Computer Related Job? Start By Taking This Quiz!

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Want A Computer Related Job? Start By Taking This Quiz! - Quiz

A computer is a machine that can be programmed to carry out sequences of arithmetic or logical operations automatically. Modern computers can perform generic sets of operations known as programs. These programs enable computers to perform a wide range of tasks.
Want A Computer Related Job? Start By Taking This Quiz!


Questions and Answers
  • 1. 

    Using the BACKSPACE function on a keyboard, where would the cursor go to delete the word "COMMA?"

    • A.

      Before the "C"

    • B.

      After the "C"

    • C.

      Before the "A"

    • D.

      After the "A"

    Correct Answer
    D. After the "A"
    Explanation
    When using the BACKSPACE function on a keyboard to delete the word "COMMA," the cursor would go after the "A." This means that when pressing the BACKSPACE key, the cursor would move to the right of the letter "A" and delete it, effectively removing the entire word "COMMA."

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  • 2. 

    Using a key board, how would you strike the "ENTER" key?

    • A.

      ​​​​​​Anchor the "J" finger and extend the semicolon finger

    • B.

      Shift the "J" finger to the "K"

    • C.

      ​​​​​Use the "J" finger to strike the key

    • D.

      ​​​​​​Anchor the thumb on the spacebar

    Correct Answer
    A. ​​​​​​Anchor the "J" finger and extend the semicolon finger
    Explanation
    To strike the "ENTER" key on a keyboard, the correct method is to anchor the "J" finger and extend the semicolon finger. This means keeping the index finger (J finger) on the F and J keys, which have raised bumps to help with finger placement, and extending the middle finger (semicolon finger) to press the "ENTER" key located at the bottom right corner of the keyboard. This technique allows for efficient and accurate typing.

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  • 3. 

    To avoid computer-induced eye strain, which of the following practices should be used when working at a computer for long periods of time?

    • A.

      Continuously use eye drops.

    • B.

      Reduce the monitor's display resolution.

    • C.

      ​Take breaks in natural light.

    • D.

      ​​​​​​Change the background picture.

    Correct Answer
    C. ​Take breaks in natural light.
    Explanation
    Taking breaks in natural light is recommended to avoid computer-induced eye strain because natural light helps to reduce eye fatigue and strain. Spending long periods of time staring at a computer screen can cause dry eyes, blurred vision, and eye strain. Taking breaks and exposing your eyes to natural light can help relax the eye muscles and reduce the strain on your eyes.

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  • 4. 

    DIRECTIONS: Read the question and select all the options that apply. Select the answers that best describe proper posture when touch keyboarding.

    • A.

      Body centered at the "H" key

    • B.

      Fingers curved at home row

    • C.

      Shoulders rounded forward

    • D.

      Legs crossed at the ankles for balance

    • E.

      Wrist elevated above the desk

    Correct Answer(s)
    A. Body centered at the "H" key
    B. Fingers curved at home row
    E. Wrist elevated above the desk
    Explanation
    Proper posture when touch keyboarding includes having the body centered at the "H" key, fingers curved at home row, and the wrist elevated above the desk. Shoulders rounded forward and legs crossed at the ankles for balance are not correct postures for touch keyboarding.

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  • 5. 

    DIRECTIONS: Read the question and choose the best response. A student's computer is running slowly. Which step should you do first to troubleshoot the issue?

    • A.

      Check the power source to the computer.

    • B.

      Force quit the application.

    • C.

      Run a virus scan.

    • D.

      Press and hold the power button to reboot.

    Correct Answer
    C. Run a virus scan.
    Explanation
    To troubleshoot a slow computer, the first step should be to run a virus scan. This is because a computer infected with viruses or malware can significantly slow down its performance. By running a virus scan, any potential threats can be detected and removed, which may help improve the computer's speed. Checking the power source, force quitting applications, or rebooting the computer may not directly address the issue of a slow computer.

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  • 6. 

    What does 1280 x 720 display resolution mean?

    • A.

      A display capability of 1280 pixels in width and 720 pixels in height.

    • B.

      A photo with 1280 pixels per millimeter in width and 720 pixels per millimeter in height.

    • C.

      A printer capability of 1280 dots per inch in width and 720 dots per inch in height.

    • D.

      A scanner capability 1280 dots per inch in width and 720 dots per inch in height.

    Correct Answer
    A. A display capability of 1280 pixels in width and 720 pixels in height.
    Explanation
    The correct answer means that the display resolution of 1280 x 720 refers to the number of pixels that a display can accommodate. It indicates that the display has a width of 1280 pixels and a height of 720 pixels. This resolution determines the level of detail and clarity that can be displayed on the screen.

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  • 7. 

    Which television will produce the sharpest image?

    • A.

      A television with 1280 x 720 display resolution.

    • B.

      A television with 1920 x 1080 display resolution.

    • C.

      A television with 2560 x 1440 display resolution.

    • D.

      A television with 3840 x 2160 display resolution.

    Correct Answer
    D. A television with 3840 x 2160 display resolution.
    Explanation
    A television with a higher display resolution will produce a sharper image because it has more pixels packed into the screen. The resolution is measured by the number of pixels horizontally and vertically, so a television with a resolution of 3840 x 2160 will have a total of 8,294,400 pixels, which is higher than the other options. This means that it can display more details and finer lines, resulting in a sharper and more detailed image.

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  • 8. 

    In computer programming, the algorithm is used to order data in a particular sequence

    • A.

      Sort

    • B.

      Order

    • C.

      Sequence

    • D.

      Variable

    Correct Answer
    A. Sort
    Explanation
    The correct answer is "Sort" because sorting is the process of arranging data in a specific order. This can be done in ascending or descending order based on certain criteria. Sorting allows for easier searching, organizing, and analyzing of data. It is an essential algorithm used in computer programming to efficiently manage and manipulate data sets.

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  • 9. 

    Which of the following is an example of machine-to-machine communication?

    • A.

      Automated monthly record backup process

    • B.

      Mass email to department personnel

    • C.

      VOiP telecommunication system

    • D.

      Group text

    Correct Answer
    A. Automated monthly record backup process
    Explanation
    An automated monthly record backup process is an example of machine-to-machine communication because it involves the transfer of data from one machine to another without human intervention. This process is typically set up to occur automatically at regular intervals, ensuring that important data is backed up regularly without the need for manual intervention. This type of communication is efficient and reliable, as it eliminates the potential for human error or delays in the backup process.

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  • 10. 

    A student's computer will not print a document. What is the first step to troubleshoot the problem?

    • A.

      Reboot

    • B.

      Check devices to make sure the printer is installed

    • C.

      Run a diagnostic program

    • D.

      Disengage antivirus software

    Correct Answer
    B. Check devices to make sure the printer is installed
    Explanation
    The first step to troubleshoot the problem of a computer not printing a document is to check the devices to ensure that the printer is installed. This is because if the printer is not properly installed or recognized by the computer, it will not be able to print. By checking the devices, the user can verify if the printer is connected and installed correctly, and take further steps accordingly to resolve the issue.

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  • 11. 

    The laser printer is not producing vivid pictures as it once did. What step should be taken to fix the issue?

    • A.

      Replace the ink cartridge

    • B.

      Replace the toner

    • C.

      Replace the head pin

    • D.

      Replace the band

    Correct Answer
    B. Replace the toner
    Explanation
    To fix the issue of the laser printer not producing vivid pictures, the step that should be taken is to replace the toner. The toner is responsible for providing the ink necessary to create the images or text on the printed page. Over time, the toner can become depleted or worn out, leading to a decrease in print quality. By replacing the toner, the printer will be able to produce vibrant and clear pictures once again.

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  • 12. 

    The print screen function produces what type of file?

    • A.

      Text file saved to the desktop

    • B.

      Bitmap image saved to the clipboard

    • C.

      Bitmap image saved to the desktop

    • D.

      Text file saved to the clipboard

    Correct Answer
    B. Bitmap image saved to the clipboard
    Explanation
    The print screen function captures the current screen display and saves it as a bitmap image. This image is then copied to the clipboard, allowing the user to paste it into other applications or documents. Therefore, the correct answer is "Bitmap image saved to the clipboard."

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  • 13. 

    DIRECTIONS: Read the sentence and choose the best response. 13) Gina had exams in the following classes math, history, and science.

    • A.

      Classes; math, history, and

    • B.

      Classes: math, history, and 

    • C.

      Classes, math, history, and

    • D.

      No change is necessary.

    Correct Answer
    B. Classes: math, history, and 
    Explanation
    The correct answer is "classes: math, history, and". This is the correct punctuation for listing the classes that Gina had exams in. The colon is used to introduce the list, and the comma is used to separate the individual classes.

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  • 14. 

    Dr. Perez has decided to let an unreasonable, demanding patient go because of the way this man treats his staff members. What would be the most diplomatic yet firm way to address this issue in a letter?

    • A.

      Your demanding, demeaning and, quite frankly, immature behavior has left me no choice but to tell you to find another physician.

    • B.

      I am not going to mince words: your behavior is unacceptable and cannot be tolerated in my practice, so you'll need to find another physician.

    • C.

      I regret to inform you that I will no longer be able to serve as your physician and will send your records to your new physician upon request.

    • D.

      At this time, I have to make the decision to let you go as a patient for fear of losing my staff, many of whom you have offended and abused.

    Correct Answer
    C. I regret to inform you that I will no longer be able to serve as your physician and will send your records to your new physician upon request.
    Explanation
    The selected answer is the most diplomatic yet firm way to address the issue in a letter. It clearly states the decision to let the patient go, while also offering to transfer their records to their new physician. This approach maintains professionalism and avoids directly criticizing the patient's behavior, which could escalate the situation further.

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  • 15. 

    Choose the sentence that is grammatically correct:

    • A.

      While she was out of town on business a thief broke into her home, stealing her car, her computer and taking her jewelry.

    • B.

      While she was out of town on business, a thief had broken into her home, stole her car and computer, and took her jewelry. 

    • C.

      While out of town on business, a thief broke into her home, stole her car, computer, and her jewelry. 

    • D.

      While she was out of town on business, a thief broke into her home and stole her car, computer, and jewelry. 

    Correct Answer
    D. While she was out of town on business, a thief broke into her home and stole her car, computer, and jewelry. 
    Explanation
    While she was out of town on business, a thief broke into her home and stole her car, computer, and jewelry.

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  • 16. 

    Choose the sentence that is grammatically correct. 

    • A.

      The teammates wore special uniforms in honor of their late coach.

    • B.

      The teammates wore special uniforms in honor of its late coach.

    • C.

      The teammates had worn special uniforms in honor of their late coach.

    • D.

      The teammates have worn special uniforms in honor of its late coach.

    Correct Answer
    A. The teammates wore special uniforms in honor of their late coach.
    Explanation
    The correct answer is "The teammates wore special uniforms in honor of their late coach." This sentence is grammatically correct because it uses the correct verb tense ("wore") and possessive pronoun ("their") to indicate that the uniforms belonged to the teammates. Additionally, the use of "in honor of" correctly expresses the reason for wearing the uniforms.

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  • 17. 

    DIRECTIONS: Read the scenario and choose the best response. Katherine is a volunteer basketball coach for the local YMCA. She needs to draft a letter that spells out the expectations for the participants and their parents.  Which would be the most professional closing line for Katherine's letter? 

    • A.

      I am looking forward to a great season and want to thank you in advance for your cooperation.

    • B.

      This will be a great season if everyone cooperates and follows the guidelines set forth in this letter. 

    • C.

      I know that everyone thinks their child is special, but I believe that all of the children are special.

    • D.

      I appreciate your cooperation and would also like to remind you that as a volunteer, I don't paid. 

    Correct Answer
    A. I am looking forward to a great season and want to thank you in advance for your cooperation.
    Explanation
    The most professional closing line for Katherine's letter is "I am looking forward to a great season and want to thank you in advance for your cooperation." This closing line expresses enthusiasm for the upcoming season and shows appreciation for the cooperation of the participants and their parents. It maintains a positive and professional tone, emphasizing the importance of working together to make the season successful.

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  • 18. 

    Marco is a college student interested in the treasurer position for the local chapter of the Nursing Association at his school. He needs to send an email to the president of the association detailing why he believes he is a good candidate.  Which of the following best communicates his strengths?

    • A.

      I am really into finances, am organized and detail-oriented, and will arrive to meetings on time. 

    • B.

      My strong math, organizational, and time-management skills make me a good candidate for the position. 

    • C.

      While good math skills are a plus, I believe that my ability to socialize is what the association needs.

    • D.

      Being involved in extracurriculars looks good on a resume, so I would like to take on this challenge. 

    Correct Answer
    B. My strong math, organizational, and time-management skills make me a good candidate for the position. 
    Explanation
    The answer "My strong math, organizational, and time-management skills make me a good candidate for the position" best communicates Marco's strengths because it directly addresses the requirements of the treasurer position. It highlights his specific skills that are relevant to the role, such as math, organization, and time-management, which are essential for handling finances and maintaining records. This answer demonstrates that Marco understands the responsibilities of the position and how his skills align with them, making him a suitable candidate.

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  • 19. 

    Tina is interested in working as a teacher for an elite private school that rarely has openings. She wants to send her resume, so it is on file in the event a job does become available. Which would be the most professional opening line for her cover letter? 

    • A.

      I understand that your institution rarely has openings, but I wanted to send you my impressive resume just in case something does pop up.

    • B.

      While I know you generally only hire people who know current employees, I thought it wouldnt hurt to send my resume along. 

    • C.

      Please consider my extensive list of credentials as you conduct your end-of-year evaluations, as it  may be a good replacement for someone. 

    • D.

      Although I understand that there are no current openings, I would like you to have my resume on file in the event a position arises.

    Correct Answer
    D. Although I understand that there are no current openings, I would like you to have my resume on file in the event a position arises.
    Explanation
    The correct answer is the most professional because it acknowledges the current situation of no openings and expresses the candidate's interest in having their resume on file for future opportunities. It shows a respectful and proactive approach to the hiring process. The other options either make assumptions or include unnecessary information that may not be relevant or appropriate for a cover letter.

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  • 20. 

    Ken has been unhappy with his lawn service for quite some time. He needs to give them a 30-day notice to end the contract. DIRECTIONS: Read the question and choose the best response. Which would be the most positive way to end his letter?

    • A.

      I appreciate your cooperation as we end our business relationship.

    • B.

      If you give me a discount, I'll reconsider ending my contract.

    • C.

      I plan on filing a complaint with the Better Business Bureau.

    • D.

      I would never recommend you to anyone I know.

    Correct Answer
    A. I appreciate your cooperation as we end our business relationship.
    Explanation
    The correct answer is "I appreciate your cooperation as we end our business relationship." This response is the most positive way to end the letter because it acknowledges the cooperation of the lawn service provider and maintains a professional tone while expressing the decision to end the contract.

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  • 21. 

    During a heated discussion, the supervisor began to speak slowly and in a low tone in order to keep the participants calm. Which of the following best describes this type of nonverbal communication?

    • A.

      Haptics

    • B.

      Kinesics

    • C.

      Proxemics

    • D.

      Vocalics

    Correct Answer
    D. Vocalics
    Explanation
    Vocalics refers to the study of paralanguage, which includes the tone, pitch, volume, and speed of speech. In this scenario, the supervisor speaking slowly and in a low tone is using vocalics to communicate a calming message to the participants. By adjusting their vocalics, the supervisor is attempting to maintain a calm and controlled atmosphere during the heated discussion.

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  • 22. 

    Which of the following methods of communication would be the most appropriate for a supervisor to discuss an employee's performance review? 

    • A.

      Telephone

    • B.

      Business letter

    • C.

      Memorandum

    • D.

      Personal meeting

    Correct Answer
    D. Personal meeting
    Explanation
    A personal meeting would be the most appropriate method of communication for a supervisor to discuss an employee's performance review. This is because a personal meeting allows for direct interaction, providing an opportunity for the supervisor to provide feedback, address any concerns, and have a two-way conversation with the employee. It also allows for non-verbal cues to be observed and ensures that the employee fully understands the feedback and expectations. Additionally, a personal meeting creates a more supportive and confidential environment, promoting open communication and trust between the supervisor and employee.

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  • 23. 

    Which of the following is a resume format that highlights experience in a time-delineated layout and is  often used by people who have a strong and consistent work history?

    • A.

      Chronological

    • B.

      Integrated

    • C.

      Targeted

    • D.

      Functional

    Correct Answer
    A. Chronological
    Explanation
    A chronological resume format is a layout that emphasizes a person's work experience in a time-ordered manner, starting with the most recent job and going back in reverse chronological order. This format is commonly used by individuals who have a strong and consistent work history as it allows employers to easily see their career progression and stability. It is effective in showcasing the candidate's growth and development over time, making it a suitable choice for those with a solid work background.

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  • 24. 

    A sales representative is providing a presentation on the sales from the previous quarter. She wants to  display the sales by each representative. Which format will be the best to use?

    • A.

      Pie Chart

    • B.

      Bar Graph

    • C.

      Line Graph

    • D.

      Scatter Plot

    Correct Answer
    B. Bar Graph
    Explanation
    A bar graph would be the best format to use in this scenario because it allows for easy comparison between the sales of each representative. The length of each bar represents the sales amount, making it simple to see which representative had the highest or lowest sales. Additionally, the bars can be color-coded or labeled to further differentiate between the representatives.

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  • 25. 

    Your manager would like you to have an understanding of sales initiatives and has asked you to sit in  on a staff meeting. What behavior should you employ during the meeting?

    • A.

      Active Listening

    • B.

      Critiquing

    • C.

      Analyzing

    • D.

      Conflict Management

    Correct Answer
    B. Critiquing
    Explanation
    During the staff meeting, it is important to employ the behavior of critiquing. This means actively evaluating and providing constructive feedback on the sales initiatives being discussed. By critiquing, you can contribute to the conversation by offering suggestions for improvement or identifying potential issues. This behavior demonstrates your engagement and understanding of the topic at hand, and shows your manager that you are actively participating and taking the initiative to contribute to the discussion.

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  • 26. 

    Harold received the following email from his manager, Cindy. Harold, I repeatedly told everyone in the office that the investors would be here today  at 9:00 am.  You  picked today of all days to show up without a suit and tie on. You looked like a mess. Comb your hair, clean your shirt, and look presentable. What is Harold's manager reprimanding him for?

    • A.

      Distractions

    • B.

      Appearance and attire  

    • C.

      Conduct

    • D.

      Business culture

    Correct Answer
    B. Appearance and attire  
    Explanation
    The manager is reprimanding Harold for his appearance and attire because she mentions that he showed up without a suit and tie and looked like a mess. She instructs him to comb his hair, clean his shirt, and look presentable, indicating that his appearance was not appropriate for the occasion.

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  • 27. 

    When developing a press release, the information should be:

    • A.

      Clear and concise

    • B.

      In depth, detailed and comprehensive  

    • C.

      Rushed through editing  

    • D.

      Distributed immediately

    Correct Answer
    A. Clear and concise
    Explanation
    When developing a press release, it is important for the information to be clear and concise. This means that the content should be easily understood and free from unnecessary details or jargon. A clear and concise press release ensures that the message is effectively communicated to the intended audience and increases the chances of it being picked up by media outlets. In contrast, an in-depth, detailed, and comprehensive press release may overwhelm the reader with excessive information and make it difficult for them to grasp the main points. Rushing through editing or distributing the press release immediately without ensuring clarity and conciseness can lead to errors or misunderstandings.

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  • 28. 

    What is the role of the school district's comptroller?

    • A.

      Provide executive leadership for the financial actions of the school district. 

    • B.

      Serve as the chief accountant for the school district.

    • C.

      Processes accounts payable. 

    • D.

      Processes accounts receivable.

    Correct Answer
    B. Serve as the chief accountant for the school district.
    Explanation
    The role of the school district's comptroller is to serve as the chief accountant for the school district. This means that they are responsible for managing and overseeing the financial activities of the district, including budgeting, financial reporting, and ensuring compliance with financial regulations. They play a crucial role in maintaining the financial health and stability of the school district by managing its financial resources and making informed financial decisions.

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  • 29. 

    Which of the following statements is true when a company pays its employees $150,000 in salary?

    • A.

      Liabilities are decreased by $150,000; assets are increased by $150,000.

    • B.

      Liabilities are decreased by $150,000; assets are decreased by $150,000.

    • C.

      Liabilities are increased by $150,000; assets are increased by $150,000.

    • D.

      Liabilities are increased by $150,000; assets are decreased by $150,000.

    Correct Answer
    D. Liabilities are increased by $150,000; assets are decreased by $150,000.
    Explanation
    When a company pays its employees $150,000 in salary, it is considered an expense for the company. This expense reduces the company's assets, specifically its cash reserves, by $150,000. At the same time, the company incurs a liability for the amount of salary owed to the employees, which increases the company's liabilities by $150,000. Therefore, the correct statement is that liabilities are increased by $150,000, and assets are decreased by $150,000.

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  • 30. 

    In the U.S., which of the following is an example of tax evasion?

    • A.

      Using inventory accounting methods to report lower profits.

    • B.

      Omitting insignificant revenue from an income statement.

    • C.

      Duplicating expense items to increase liabilities and report lower profits.

    • D.

      Filing an extension to delay payment.

    Correct Answer
    C. Duplicating expense items to increase liabilities and report lower profits.
    Explanation
    Duplicating expense items to increase liabilities and report lower profits is an example of tax evasion because it involves intentionally manipulating financial records to reduce taxable income. By duplicating expense items, a company can inflate its expenses, which in turn decreases its reported profits and tax liability. This practice is illegal as it misrepresents the true financial position of the company and results in underpayment of taxes.

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  • 31. 

    DIRECTIONS: Refer to the following chart to answer the questions below. Using FIFO, what is the total cost of goods sold for 2018?

    • A.

      $100,000  

    • B.

      $135,000  

    • C.

      $140,000   

    • D.

      $160,000

    Correct Answer
    B. $135,000  
    Explanation
    The total cost of goods sold for 2018 can be calculated using the FIFO (First-In, First-Out) method. This method assumes that the first items purchased are the first ones sold. Looking at the chart, the cost of goods sold for 2018 can be calculated by adding the costs of the items sold in 2018. The cost of goods sold in 2018 is $135,000.

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  • 32. 

    Using LIFO, what is the total cost of goods sold for 2018?

    • A.

      $100,000

    • B.

      $135,000

    • C.

      $140,000

    • D.

      $160,000

    Correct Answer
    C. $140,000
    Explanation
    The total cost of goods sold for 2018 is $140,000. This is determined by using the LIFO (Last In, First Out) method, which assumes that the most recently purchased inventory is sold first. Therefore, the cost of goods sold is calculated by adding up the costs of the inventory purchased throughout the year, starting with the most recent purchases. In this case, the total cost of goods sold is $140,000.

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  • 33. 

    33)Using FIFO, what is the gross profit?

    • A.

      $100,000

    • B.

      $135,000

    • C.

      $160,000

    • D.

      $165,000

    Correct Answer
    D. $165,000
  • 34. 

    Using LIFO, what is the gross profit?  

    • A.

      $160,000

    • B.

      $100,000

    • C.

      $135,000

    • D.

      $165,000

    Correct Answer
    A. $160,000
    Explanation
    The gross profit is $160,000 because LIFO (Last In, First Out) assumes that the most recently acquired inventory is sold first. Since the question does not provide any additional information or context, we can assume that the cost of goods sold is equal to the total value of inventory, which is $160,000.

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  • 35. 

    Using FIFO, what is the gross profit margin?

    • A.

      10%

    • B.

      25%

    • C.

      55%

    • D.

      100%

    Correct Answer
    C. 55%
    Explanation
    The gross profit margin is a financial metric that measures the profitability of a company by calculating the percentage of revenue that remains after deducting the cost of goods sold. FIFO (First-In, First-Out) is a method of inventory valuation where the oldest inventory items are sold first. This method can result in a higher cost of goods sold and therefore a lower gross profit margin. Therefore, the correct answer of 55% suggests that using the FIFO method, the company's gross profit margin is 55% of its revenue.

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  • 36. 

    Using LIFO, what is the gross profit margin?  

    • A.

      10%

    • B.

      53%

    • C.

      25%

    • D.

      100%

    Correct Answer
    B. 53%
    Explanation
    The correct answer is 53% because using LIFO (Last In, First Out) method means that the most recent inventory costs are matched with revenue first. This results in higher costs of goods sold and lower gross profit margin compared to other inventory costing methods. Therefore, the gross profit margin would be 53% in this case.

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  • 37. 

    Using FIFO, what is the net profit?  

    • A.

      $75,000

    • B.

      $72,500

    • C.

      $100,000

    • D.

      $70,000

    Correct Answer
    A. $75,000
    Explanation
    The net profit using FIFO is $75,000. FIFO stands for "First In, First Out" and is a method of inventory valuation. It assumes that the first items purchased are the first ones sold. In this case, the cost of goods sold is deducted from the revenue to calculate the net profit. Since the cost of goods sold is $0, the net profit is equal to the revenue of $75,000.

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  • 38. 

    Using LIFO, what is the net profit?  

    • A.

      $75,000

    • B.

      $72,500

    • C.

      $100,000

    • D.

      $70,000

    Correct Answer
    D. $70,000
  • 39. 

    Why would it be advantageous for this business to use LIFO instead of FIFO when calculating profit?

    • A.

      The business will pay less in taxes.

    • B.

      The business will pay more in taxes.

    • C.

      The business will get a higher return on investments.

    • D.

      The business will have more inventory for next year.

    Correct Answer
    A. The business will pay less in taxes.
    Explanation
    Using LIFO (Last In, First Out) instead of FIFO (First In, First Out) when calculating profit can be advantageous for this business because LIFO assumes that the most recently purchased inventory is sold first. This means that the cost of goods sold will include the higher-priced inventory, resulting in lower reported profits and, consequently, lower taxable income. By paying less in taxes, the business can retain more of its earnings, which can be reinvested or used for other purposes to further grow the business.

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  • 40. 

    DIRECTIONS: Refer to the following chart to answer the question below. H2 Oh! Water Filters Income Statement Based on the income statement above, explain why the gross profit margin was higher in 2016 than  2017 even though H2 Oh! Water Filters recognized higher revenues in 2017.

    • A.

      The cost of production was lower in 2016 than in 2017.  

    • B.

      The beginning inventory was less in 2016 than in 2017.

    • C.

      The ending inventory was more in 2017 than in 2016.  

    • D.

      The sale price was higher in 2016 than in 2017.

    Correct Answer
    A. The cost of production was lower in 2016 than in 2017.  
    Explanation
    The gross profit margin is calculated by subtracting the cost of production from the revenue and dividing it by the revenue. Since the cost of production was lower in 2016 than in 2017, the difference between the revenue and cost of production was higher in 2016, leading to a higher gross profit margin. Even though the revenue was higher in 2017, the increase in cost of production offset the increase in revenue, resulting in a lower gross profit margin.

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  • 41. 

    DIRECTIONS: Read the question and select the best response. Which of the following principles forms the accrual basis of accounting where revenue is reported  when the item is sold?

    • A.

      Revenue recognition principle

    • B.

      Cost principle

    • C.

      Going concern principle

    • D.

      Matching principle

    Correct Answer
    A. Revenue recognition principle
    Explanation
    The revenue recognition principle states that revenue should be recognized or reported when it is earned, regardless of when the payment is received. This means that revenue should be recognized when the goods or services are delivered to the customer and the customer is obligated to pay for them. In this case, the revenue is reported when the item is sold, indicating that the revenue recognition principle is being followed.

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  • 42. 

    What is the purpose of the GAAP?

    • A.

      To provide appealing yet affordable clothing.

    • B.

      To provide a set of approved accounting standards for businesses to follow.

    • C.

      To enforce accounting laws to the fullest extent possible.

    • D.

      To provide information on current tax laws

    Correct Answer
    B. To provide a set of approved accounting standards for businesses to follow.
    Explanation
    The purpose of the GAAP (Generally Accepted Accounting Principles) is to provide a set of approved accounting standards for businesses to follow. These standards ensure consistency, transparency, and accuracy in financial reporting, allowing investors, creditors, and other stakeholders to make informed decisions. GAAP provides guidelines for recording, summarizing, and presenting financial information in a standardized format, ensuring comparability and reliability across different companies and industries. By following GAAP, businesses can enhance their credibility, facilitate financial analysis, and ensure compliance with regulatory requirements.

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  • 43. 

    Which of the following is an example of a capital expenditure?

    • A.

      Printer paper

    • B.

      Luncheon for clients

    • C.

      Materials for a construction project

    • D.

      New office building

    Correct Answer
    D. New office building
    Explanation
    A capital expenditure refers to a significant investment made by a company to acquire or improve a long-term asset that will benefit the business over an extended period. While printer paper and luncheon for clients are considered regular operating expenses, materials for a construction project can be classified as a capital expenditure if they are used to enhance or expand the company's physical infrastructure. However, a new office building is the best example of a capital expenditure as it involves a substantial investment in a long-term asset that will provide ongoing benefits to the business.

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  • 44. 

    The Statement of Shareholder's Equity includes which of the following items?

    • A.

      Interest income

    • B.

      Total liabilities

    • C.

      Common stock

    • D.

      Operating expenses

    Correct Answer
    C. Common stock
    Explanation
    The Statement of Shareholder's Equity includes common stock because it represents the amount of capital invested by shareholders in the company. This item shows the ownership interest of shareholders and is an important component of the company's equity section. The statement provides a summary of changes in shareholder's equity over a specific period, including the issuance or repurchase of common stock.

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  • 45. 

    Which of the following would NOT be recorded as a liability in the income statement?

    • A.

      Taxes payable

    • B.

      Accounts receivable

    • C.

      Capital expense

    • D.

      Loan interest payments

    Correct Answer
    B. Accounts receivable
    Explanation
    Accounts receivable would not be recorded as a liability in the income statement because it represents the amount of money that a company is owed by its customers for goods or services that have already been provided. It is considered an asset, as it represents the company's right to receive cash in the future. Liabilities, on the other hand, represent the company's obligations or debts, such as taxes payable, capital expenses, and loan interest payments.

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  • 46. 

    Silva would like to set aside money for the future. She has $1,000 now and would like to contribute a  set amount over time. She wants a federally insured account and she wants some check writing abilities.  Which of the following options would be most appropriate for the employee?

    • A.

      Regular savings account

    • B.

      Certificates of deposit

    • C.

      Money market accounts

    • D.

      U.S. savings bonds

    Correct Answer
    C. Money market accounts
    Explanation
    A money market account would be the most appropriate option for Silva because it offers both federal insurance and check writing abilities. This type of account typically pays higher interest rates compared to regular savings accounts, making it a good option for setting aside money for the future. Additionally, money market accounts are known for their liquidity, allowing Silva to easily access her funds when needed. Certificates of deposit and U.S. savings bonds may offer higher interest rates, but they do not provide the same level of flexibility and check writing abilities.

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  • 47. 

    Which of the following best desaibes a bank loan to a borrowing customer?

    • A.

      A liability for the customer, an asset for the bank.

    • B.

      An asset for the customer, a liability for the bank.

    • C.

      An asset for the customer, an asset for the bank.

    • D.

      A liability for the customer, a liability for the bank.

    Correct Answer
    A. A liability for the customer, an asset for the bank.
    Explanation
    A bank loan is a liability for the customer because they are obligated to repay the borrowed amount along with any interest. It is an asset for the bank because they will receive interest payments and have the right to collect the loan amount.

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  • 48. 

    Molly is managing her personal budget using the 50/20/30 rule. Her monthly income is $2500. How  much money should she be putting into her savings account each month?

    • A.

      $2500

    • B.

      $500

    • C.

      $0

    • D.

      $1250

    Correct Answer
    B. $500
    Explanation
    According to the 50/20/30 rule, Molly should be putting 20% of her monthly income into her savings account. Since her monthly income is $2500, 20% of $2500 is $500. Therefore, Molly should be putting $500 into her savings account each month.

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  • 49. 

    Lucie makes $60,000 a year. She puts 10% of her annual salary in savings and pays $6,000 in annual  taxes. What is Lucie's monthly take home pay?

    • A.

      $4,000

    • B.

      $5,000

    • C.

      $6,000

    • D.

      $10,000

    Correct Answer
    A. $4,000
    Explanation
    Lucie makes $60,000 a year and pays $6,000 in annual taxes. To find her monthly take home pay, we need to subtract the amount she saves and the amount she pays in taxes from her annual salary. Lucie saves 10% of her annual salary, which is $60,000 * 0.10 = $6,000. Subtracting this from her annual salary gives us $60,000 - $6,000 = $54,000. To find her monthly take home pay, we divide this amount by 12 (the number of months in a year): $54,000 / 12 = $4,500. Therefore, Lucie's monthly take home pay is $4,500.

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  • 50. 

    If Georgina makes $1600 per month, she pays $250 in bills and $150 for her car, what is her debt to  income ratio?

    • A.

      .25

    • B.

      .5

    • C.

      50

    • D.

      .25

    Correct Answer
    A. .25
    Explanation
    The debt to income ratio is calculated by dividing the total monthly debt payments by the monthly income. In this case, Georgina's total monthly debt payments are $250 + $150 = $400. Her monthly income is $1600. Dividing $400 by $1600 gives a ratio of 0.25.

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