Exam (elaborations)
ESB V.2 DOMAIN 4 TEST QUESTIONS AND ANSWERS
- Course
- Institution
ESB V.2 DOMAIN 4 TEST QUESTIONS AND ANSWERS...
[Show more]
Content preview
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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller luzlinkuz. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83637 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now