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ESB V.2 DOMAIN 4 TEST QUESTIONS AND ANSWERS
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ESB V.2 DOMAIN 4 TEST QUESTIONSAND ANSWERS
Balance Sheet
A document that compares assets versus liabilities, including owner equity.
Income Statement
A financial statement that details a company's revenue and spending over a
specific period.
Breakeven Point
The point at which a company's revenue equals its expenses for a specific
period.
Profit Margin
The net profit the company expects to make from the sale, which is typically
stated as a percentage.
Selling Price Formula: [(cost) * (desired profit margin)]. + (cost)
Ben operates a shoe store. He has a new line of limited-edition running shoes
that will be available in his store shortly. The shoes cost $18 to manufacture,
and he hopes to make a 20% profit on each pair sold. What is Ben's selling
price?
$21.60
, Adam owns a restaurant. The eatery is adding a new item on its menu. The meal
costs $6.75 to create, and he hopes to profit by 33% on each sale. What is
Adam's sale price?
$8.98
Cory owns a home goods store. He is ready to introduce a new range of candles
into his business. The cost of making the candles is $8.46 per candle, and he
hopes to generate a 52% profit on each. What is Cory's selling price?
$12.94
Equity formula: (assets - liabilities).
Asset
A tangible asset that a business owns.
Liability
The sum of money due to an entity.
Mallory owns a car repair shop. She has $12,000 in cash, $8,000 in goods, a
$4,000 credit card bill, and $3,500 in long-term debt. What is Mallory's equity?
$12,500
Ashley sells automobiles. She carries $26,000 in cash, $34,000 in goods, a
$4,600 credit card bill, and $7,900 in long-term debt. What is Ashley's equity?
$47,500
We have an expert-written solution for this problem!
Mindy owns a restaurant. She has $14,200 in cash, $2,600 in inventory, $5,000
in equipment, a credit card amount of $3,800, and $1,400 in long-term debt.
What is Mindy's equity?
$16,600
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