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Business Math and Calculations Flashcards

7 cards from real CAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Business Math and Calculations flashcards as text

  1. A company has current assets of $75,000 and current liabilities of $25,000. What is the current ratio?

    Answer: 3:1

    Current ratio = $75,000 ÷ $25,000 = 3:1.

  2. An asset costs $12,000, has a salvage value of $2,000, and a useful life of 5 years. Using straight-line depreciation, what is the annual depreciation expense?

    Answer: $2,000

    Annual depreciation = (Cost − Salvage) ÷ Life = ($12,000 − $2,000) ÷ 5 = $2,000.

  3. Total expenses are $42,000 and sales revenue is $60,000. What percentage of revenue do expenses represent?

    Answer: 70%

    $42,000 ÷ $60,000 = 0.70 = 70%.

  4. A gross paycheck of $2,800 has deductions of $392.00 (federal tax), $173.60 (Social Security at 6.2%), and $40.60 (Medicare at 1.45%). What is the net pay?

    Answer: $2,193.80

    $2,800.00 − $392.00 − $173.60 − $40.60 = $2,193.80.

  5. A business had beginning inventory of $8,000, purchased $22,000 in goods during the period, and has ending inventory of $5,000. What is the cost of goods sold?

    Answer: $25,000

    COGS = Beginning Inventory + Purchases − Ending Inventory = $8,000 + $22,000 − $5,000 = $25,000.

  6. Total liabilities are $90,000 and total equity is $60,000. What is the debt-to-equity ratio?

    Answer: 1.5

    Debt-to-equity = $90,000 ÷ $60,000 = 1.5.

  7. A petty cash fund starts with $150.00. During the period, $42.50 was spent on office supplies, $18.75 on postage, and $23.00 on miscellaneous items. How much cash should remain in the fund?

    Answer: $65.75

    $150.00 − $42.50 − $18.75 − $23.00 = $65.75.