Competitive Events Practice Test
Print the practice test and answer the questions. Allow one hour to complete the test.

True/False

1. Straight-time pay is pay a person receives for working more than his or her regular hours.
2. The cost of group health insurance is usually more if obtained through an employer than if purchased individually.
3. The total value of a country's goods and services produced in a given year is called its consumer price index (CPI).
4. The maturity value of a loan is the total amount of principal and interest that must be repaid.
5. For a business to sell an item at a net profit, the selling price of the item must be less than its overhead or operating expenses.
6. The face value of a U.S. Treasury bill (or T-bill) is the amount of money the Treasury bill is worth on the maturity date of the bill.
7. Gross pay is the amount of money left after taxes and personal deductions have been subtracted.
8. A company's record of the gross income, deductions, and net income of its employees is called a payroll register.
9. The unpaid-balance method, the average daily-balance method (no new purchases included), and the average daily-balance method (new purchases included) are three different ways to compute the finance charge on a charge account.
10. An expense summary is used to keep track of the hours an employee works during a specific pay period.

Multiple Choice

11. Which of the following is used to record deposits, electronic transfers, and checks written?
    1. personal identification number (PIN)
    2. emergency fund
    3. daily compounding
    4. check register
    5. sales receipt
    
    
12. Interest paid for delaying payment on a credit card is called a __________.
    1. finance charge
    2. rebate
    3. fixed expense
    4. promissory note
    5. deductible clause
    
    
13. Hamali Shah sells appliances and receives a graduated commission of 5 percent of the first $1,000, 7 percent of the next $2,500, and 10 percent over $3,500. Last week she had $3,900 in sales. What is her total commission for the week?
    1. $250
    2. $265
    3. $280
    4. $285
    5. $290
    
    
14. Tory Owen bought a winter coat that had a selling price of $89. The state sales tax rate is 6.5 percent and the county tax is 1 percent. What is the total selling price of this purchase?
    1. $95.68
    2. $96.34
    3. $96.80
    4. $97.02
    5. $97.46
    
    
15. Nina Flickinger deposited $2,000 in a savings account that pays 5 percent annual interest compounded quarterly. If she makes no additional deposits or withdrawals, how much money will she have in her account after one year?
    1. $2,020.32
    2. $2,046.86
    3. $2,057.93
    4. $2,101.89
    5. $2,114.25
    
    
16. Shannon's department store is selling collapsible cushioned chairs for 20 percent off the regular price of $62. What is the sale price of the chair?
    1. $47.54
    2. $48.40
    3. $49.60
    4. $50.16
    5. $51.70
    
    
17. Dan Heller has a single payment loan of $1,400 for 78 days at 8 percent ordinary interest. What is the ordinary interest on the loan?
    1. $23.93
    2. $24.27
    3. $25.77
    4. $26.15
    5. $28.40
    
    
18. Nathan Crowley wants to purchase a new car for $17,800. If he makes a down payment of 25 percent, how much will he need to finance?
    1. $13,350
    2. $14,030
    3. $14,240
    4. $14,720
    5. $15,060
    
    
19. When you buy a home, fees for lawyers, credit checks, title searches, surveys, taxes, and the preparation of documents are called __________.
    1. variable costs
    2. utility costs
    3. closing costs
    4. fixed costs
    5. prime costs
    
    
20. The rate at which money earns simple interest in one year is called __________.
    1. merit increase
    2. break-even point
    3. profit
    4. overtime pay
    5. annual yield
    
    
21. Which of the following types of investments allow an investor to become a part-owner of a corporation?
    1. certificate of deposit
    2. stock
    3. U.S. savings bonds
    4. passbook account
    5. whole life insurance
    
    
22. Some health insurance policies have a predetermined flat fee for health care services called a __________.
    1. co-payment
    2. beneficiary
    3. dividend
    4. deductible
    5. single-payment loan
    
    
23. Tyler Barnes has a family membership in his company's traditional group medical insurance. The cost of insurance is $9,400. His company pays 70 percent of the cost. How much does Barnes pay for insurance?
    1. $2,820
    2. $2,960
    3. $3,080
    4. $3,200
    5. $3,370
    
    
24. Utility costs include charges for __________.
    1. electricity
    2. gas
    3. water
    4. telephone
    5. all of the above
    
    
25. With each payment made on a mortgage, the amount of principal owed to the lender __________.
    1. increases
    2. decreases
    3. stays the same
    4. lowers the real estate taxes
    5. raises the market value of the property
    
    
26. In which of the following types of investments must money be left for a specified period of time to avoid a penalty for early withdrawal of funds?
    1. stocks
    2. Social Security
    3. regular savings account
    4. certificate of deposit
    5. term life insurance
    
    
27. Henrietta Martinez bought 200 shares of Tri-tech stock at $16.00 per share. The company paid annual dividends of $0.49 per share. What is the annual yield?
    1. 2.4%
    2. 2.9%
    3. 3.1%
    4. 3.6%
    5. 4%
    
    
28. The amount of money a person is paid for selling a product or service is called a __________.
    1. personal exemption
    2. deposit
    3. deductible
    4. trade discount
    5. commission
    
    
29. A raise in an employee's salary to keep up with inflation is called a/an __________.
    1. merit increase
    2. employee benefit
    3. workers compensation insurance
    4. cost-of-living adjustment
    5. recruiting cost
    
    
30. Which of the following can be used to help keep track of money and examine spending habits?
    1. automated teller machine (ATM)
    2. budget sheet
    3. compound interest
    4. salary scale
    5. quality control chart
    
    
31. The total of the direct material cost and the direct labor cost of manufacturing an item is called the __________.
    1. break-even point
    2. profit
    3. time study
    4. quality control
    5. prime cost
    
    
32. The percent of the total market that purchases a specific product instead of a competitor's product is called __________.
    1. opinion survey
    2. peak load
    3. market share
    4. gross profit
    5. net-profit rate
    
    
33. The number of each item that a business has in stock is called __________.
    1. inventory
    2. markdown
    3. book value
    4. invoice
    5. sales potential
    
    
34. Jalen Edwards earns $12.60 per hour. Her overtime rate is 1½ times her regular hourly rate. Last week she worked her regular 40 hours plus 4 hours of overtime. What is her total pay?
    1. $504.20
    2. $535.90
    3. $544.70
    4. $564.80
    5. $579.60
    
    
35. Maya Ming files medical records at a doctor's office. The average time it takes her to file one record is 45 seconds. How many records can she file in 4 hours if she takes one 15-minute break?
    1. 270
    2. 285
    3. 290
    4. 300
    5. 310
    
    
36. Seventh Avenue Fashions purchases women's sweaters for $29 each from the manufacturer. The store sells the sweaters for $54. What is the markup rate based on the selling price?
    1. 46%
    2. 48%
    3. 49%
    4. 51%
    5. 54%
    
    
37. Orlando's Pizza had total sales of $210,500 in the city of Wentworth. The total estimated pizza sales in Wentworth last year were $996,000. What is Orlando's market share?
    1. 19%
    2. 21%
    3. 23%
    4. 24%
    5. 25%
    
    
38. The Flint Tire Company estimates the annual cost of carrying an inventory is 26 percent of its value. The inventory value this year is $345,000. What is the annual cost of carrying the inventory for this year?
    1. $87,500
    2. $88,300
    3. $89,700
    4. $90,500
    5. $91,000
    
    
39. Annice Simms rents office space that measures 20 feet by 30 feet. She pays $8.75 per square foot per year. What is her monthly rental charge?
    1. $422.75
    2. $437.50
    3. $467.80
    4. $483.90
    5. $495.45
    
    
40. Select Manufacturing Company had the following annual expenses: Payroll: $694,720
    Advertising: $15,600
    Rent: $78,000
    Supplies: $43,000
    Utilities: $39,000
    Equipment: $260,000
    Insurance: $59,000
    

    The payroll expense at Select Manufacturing Company is what percent of the total annual expenses?

    1. 58%
    2. 60%
    3. 61%
    4. 64%
    5. 65%
    
    
41. Depreciation, or a decrease in the value of an item because of its age and condition, can be calculated in which of the following ways?
    1. straight-line method
    2. book value
    3. Modified Accelerated Cost Recovery System (MACRS)
    4. both a and c
    5. all of the above
    
    
42. The total amount of money a business owes to its creditors is called __________.
    1. deflation
    2. assets
    3. salvage value
    4. liabilities
    5. owner's equity
    
    
43. Which of the following shows the financial position of a company on a specific date?
    1. payroll register
    2. balance sheet
    3. commercial paper
    4. per capita GDP (gross domestic product)
    5. break-even analysis
    
    
44. A black ink jet cartridge for a printer cost $26.99 last year. This year the same cartridge costs $27.49. What is the rate of inflation?
    1. 1%
    2. 2%
    3. 3%
    4. 4%
    5. 5%
    
    
45. Hector Gutierrez is a quality control inspector for Fleet Athletic Shoes. He checked a sample of 50 pairs of shoes and found 3 defective pairs. What percent of the sample is defective?
    1. 2%
    2. 4%
    3. 6%
    4. 8%
    5. 10%
    
    
46. The base price of a four-door sedan with automatic transmission is $16,250. Anti-lock brakes are $495, air-conditioning is $625, and the destination charge is $395. What is the sticker price of the car?
    1. $16,250
    2. $16,745
    3. $16,800
    4. $17,370
    5. $17,765
    
    
47. The cost of shipping an item depends on which of the following factors?
    1. weight of the item
    2. size of the warehouse
    3. speed of the delivery
    4. both a and c
    5. all of the above
    
    
48. The type of insurance that pays benefits to individuals who are unable to work because of illness or injury is called __________.
    1. disability insurance
    2. collision insurance
    3. liability insurance
    4. homeowner's insurance
    5. life insurance
    
    
49. When one business lends money to another business, this is called __________.
    1. horizontal analysis
    2. face value
    3. commercial paper
    4. underwriting commission
    5. profit and loss statement
    
    
50. Allstar Floors sells a particular vinyl floor for $3.07 per square foot. The trade discount rate is 30 percent. What is the net price per square foot of vinyl flooring?
    1. $1.95
    2. $2.08
    3. $2.15
    4. $2.27
    5. $2.40