ESB Certification Exam Review
Questions and Answers (Graded A)
James owns a restaurant with beginning cash balance of $5,000, $30,000 in sales,
$2,000 in utilities, $6,000 in loans and $4,000 in marketing. What is James ending cash
balance? - ANSWER-$24,800
Shelly owns a car dealership. She just received a shipment of teslas and paid $70,000
for each one and wants to make 25%. What should her selling price be? - ANSWER-
$87,500
TRUE OR FALSE: Mortgage Payments are Long Term Liabilities - ANSWER-True
Equipment is considered ... - ANSWER-a long term asset
ROI is calculated by ... - ANSWER-Net Profit / Cost of Investment X 100
Run Rate is calculated by ... - ANSWER-Current Revenue for one month X 12
Michelle owns a bakery shop. Her revenue at the end of last month was $6,000. What is
Michelle's run rate? - ANSWER-$72,000
Which of the following is a variable expense? - ANSWER-commission payments
Anthony owns a bike shop. His monthly cost is $2,750.00. Each bike costs $275.00.
How many bikes does he have to sell to break even? - ANSWER-10
How does an entrepreneur determine his / her selling price? - ANSWER-selling price =
cost X desired profit margin + cost
TRUE OF FALSE: Equity = Assets + Liabilities - ANSWER-False
________ is the owner's remaining value after all liabilities have been deducted. -
ANSWER-Equity
Peter owns a barber shop. His total monthly cost is $3,500.00. He charges $15.00 per
hair cut. How many hair cuts must his shop perform to break-even? - ANSWER-234
TRUE OR FALSE: Fixed Costs change depending on the volume of production. -
ANSWER-False
Questions and Answers (Graded A)
James owns a restaurant with beginning cash balance of $5,000, $30,000 in sales,
$2,000 in utilities, $6,000 in loans and $4,000 in marketing. What is James ending cash
balance? - ANSWER-$24,800
Shelly owns a car dealership. She just received a shipment of teslas and paid $70,000
for each one and wants to make 25%. What should her selling price be? - ANSWER-
$87,500
TRUE OR FALSE: Mortgage Payments are Long Term Liabilities - ANSWER-True
Equipment is considered ... - ANSWER-a long term asset
ROI is calculated by ... - ANSWER-Net Profit / Cost of Investment X 100
Run Rate is calculated by ... - ANSWER-Current Revenue for one month X 12
Michelle owns a bakery shop. Her revenue at the end of last month was $6,000. What is
Michelle's run rate? - ANSWER-$72,000
Which of the following is a variable expense? - ANSWER-commission payments
Anthony owns a bike shop. His monthly cost is $2,750.00. Each bike costs $275.00.
How many bikes does he have to sell to break even? - ANSWER-10
How does an entrepreneur determine his / her selling price? - ANSWER-selling price =
cost X desired profit margin + cost
TRUE OF FALSE: Equity = Assets + Liabilities - ANSWER-False
________ is the owner's remaining value after all liabilities have been deducted. -
ANSWER-Equity
Peter owns a barber shop. His total monthly cost is $3,500.00. He charges $15.00 per
hair cut. How many hair cuts must his shop perform to break-even? - ANSWER-234
TRUE OR FALSE: Fixed Costs change depending on the volume of production. -
ANSWER-False
