Cfa 3

Front 1

What is the total of expenses if salaries are
$70,000, advertising is $12,000, rent is
$14,000, utilities are $3,600, maintenance is
$1,200, insurance is $1,500, and
miscellaneous expenses are $1,000?

Back 1

$103,300

Front 2

If beginning inventory is $27,000,
merchandise purchased to replenish the
stock is $18,000, and the recorded ending
inventory is $16,000, what is the cost of
goods sold?

Back 2

$29,000

Front 3

On an income statement, net sales revenue
minus cost of goods sold is:

Back 3

Gross profit.

Front 4

What is trade credit?

Back 4

A form of short-term financing from
within the industry

Front 5

Which federal agency provides social and
economic statistics to small businesses?

Back 5

Department of Commerce

Front 6

One advantage of using personal savings to
fund a sole proprietorship is that:

Back 6

The owner retains all the profits.

Front 7

Money invested in a business by private
investors is:

Back 7

Equity funding.

Front 8

The value of a life insurance policy on the
life of the business owner is which type of
asset?

Back 8

Other

Front 9

If the gross profit on sales is $574,000 and
total expenses are $401,000, what is the net
income?

Back 9

$173,000

Front 10

If the gross profit is $200,000 and the total
expenses are $103,300, what is the net
income/profit (before taxes)?

Back 10

$96,700

Front 11

David borrowed $180,000 from his bank to
start his dry cleaning business. His
repayment plan requires payments of
$1,500 a month. How long will it take David
to pay back his loan?

Back 11

10 years

Front 12

Market position is:

Back 12

The perceived standing of a business in
the minds of customers.

Front 13

Monitoring existing products and
eliminating weak products are factors in:

Back 13

Product selection.