Questions 1 to 25: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer. 1. Jay Miller insured his pizza shop for $200,000 for fire insurance at an annual rate per $100 of $.49. At the end of 10 months, Jay canceled the policy since his pizza shop went out of business. Using the tables in the Business Math Handbook that accompanies the course textbook, determine the refund to Jay. A. $980 B. $186.20 C. $852.60 D. $127.40 2. Crestwood Paint Supply had a beginning inventory of 10 cans of paint at $25.00 per can. They purchased 20 cans during the month at $30.00 per can. They had an ending inventory valued at $500. How much paint in dollars was used for the month? A. $1,350 B. $250 C. $350 D. $850 3. The building of Jim’s Hardware is assessed at $109,000. The tax rate is $86.95 per $1,000 of assessed valuation. The tax due is A. $947.75. B. $8,659.54. C. 94,698.23. D. $8,695.45. E. $9,477.55. 4. The municipality of Waterloo needs $915,000 from property tax to meet its budget. The total value of assessed property in Waterloo is $14,000,000. What is the tax rate per dollar? (Round your answer to the nearest thousandth.) A. $.0655 B. $.07 C. $.065 D. $.071 5. The weighted-average method is best used A. for heterogeneous products. B. only for grains. C. for homogeneous products. D. only for fuels. 6. Which one of the following statements is true of specific identification? A. Flow of goods and flow of cost are the same. B. Low-cost items aren’t used in this method. C. Ending inventory isn’t associated with specific purchase prices. D. The specific purchase invoice prices aren’t used. 7. Which one of the following items is subject to sales tax in the District of Columbia? A. Shampoo B. Milk C. Roast beef D. Tomatoes 8. Which one of the following statements is true about reduced paid-up insurance? A. It results in a face amount less than the original amount . B. It continues for 20 years. C. It means the original face amount is continued for a certain number of years. D. It buys protection with paying new premiums. 9. What is the retail method? A. It doesn’t require a cost ratio. B. It’s not an estimate. C. It eliminates the need to take a physical inventory. D. It aids a company in not having to calculate an inventory cost for each individual item. 10. Calculate the optional bodily injury cost for the following: Class: 10 Optional Bodily Injury: 100/300/50 A. $108 B. $94 C. $144 D. $187 11. Total sales of $400,000 that included a 6% sales tax yields actual sales of A. $377,358.49. B. $37,537.58. C. $48,200. D. $42,800. 12. Kris bought a new fur coat for $8,000. She must pay 5% sales tax and 7% excise tax. The furrier is shipping the coat, so Kris must also pay a $15 insurance charge. What is the total purchase price of the coat? A. $8,975 B. $8,960 C. $8,400 D. $8,560 13. Jim opened a new pizza shop. He insures his store for $90,000.00 for fire. What is his premium if the rate per $100.00 is $0.83? A. $74,700.00 B. $74.70 C. $747.00 D. $700.00 14. With net sales of $40,000, beginning inventory at retail of $14,000, ending inventory at retail of $20,000, and cost of goods sold of $19,500, what is the inventory turnover at retail rounded to the nearest hundredth? A. 2.35 B. 5.23 C. 3.25 D. 5.15 15. An auto insurance premium may be partially based on the A. make of the car. B. number of years one expects to drive a car. C. expected life of the car. D. attitude of the driver. 16. To avoid distortion of extreme values, a good indicator would be the A. median. B. mode. C. weighted-mean. D. mean. 17. Calculate the median from the following numbers: 16 + 9 + 10 + 5 + 4. A. 5 B. 10 C. 4 D. 9 18. Usually, assessed value is rounded to the nearest A. cent. B. dollar. C. tenth. D. percent. 19. Matt Miller, age 28, takes out $50,000 of straight-life insurance. His annual premium is $418.20. Using the tables in the Business Math Handbook that accompanies the course textbook, determine the cash value of his policy at the end of 20 years. A. $26,500 B. $13,250 C. $26,000 D. $30,000 20. Mike’s condo has a market value of $310,000. The property in Mike’s area is assessed at 40% of the market value. The tax rate is $145.10 per $1,000 of assessed valuation. The tax for Mike is A. $16,992.40. B. $17,992.40. C. $7,999.30. D. $7,999.40. 21. Stocks are always quoted in A. percents. B. decimals. C. quarter lots. D. quarters of a dollar. End of exam 22. During inflation, the best method to use in inventory valuation that produces the smallest amount of profit is A. FIFO. B. specific invoice. C. weighted average. D. LIFO. 23. Suppose Department A is 8,000 square feet, Department B is 5,000 square feet, and Department C is 6,000 square feet. What is the percent of overhead expense applied to Department C? (Round your answer to the nearest whole percent.) A. 32% B. 26% C. 68% D. 42% 24. Clay’s Fishing Shop’s beginning inventory is $70,000 and ending inventory is $36,500. What was Clay’s average inventory? A. $35,000 B. $53,250 C. $18,250 D. $48,000 25. Which one of the following statements is true of preferred stock? A. It can be cumulative. B. It never receives dividends in arrears. C. It never has a preference to dividends over common stockholders. D. It has equal rights to common stock.