BUSINESS MATHEMATICS EXAMINATION QUESTIONS AND CORRECT ANSWER WITH EXPLANATION GRADED A+ STUDY GUIDE

BUSINESS MATHEMATICS EXAMINATION QUESTIONS
AND CORRECT ANSWER WITH EXPLANATION GRADED
A+ STUDY GUIDE SOUTHERN NEW HAMPSHIRE
UNIVERSITY
1. Business mathematics is used to:
A. Solve business-related numerical problems
B. Draw pictures
C. Write essays
D. Paint charts
Answer: A
Rationale: It applies math in business decisions.

2. Simple interest formula is:
A. I = PRT/100
B. I = P + R + T
C. I = PRT
D. I = P/R
Answer: A
Rationale: Standard simple interest formula.

3. Compound interest is calculated on:
A. Principal and accumulated interest
B. Principal only
C. Interest only
D. Time only
Answer: A
Rationale: Interest is reinvested.

4. Amount in compound interest is:
A. A = P(1 + r/100)^n
B. A = P + R + T
C. A = PRT
D. A = P/R
Answer: A
Rationale: Growth formula.

,5. Profit is:
A. Selling price − Cost price
B. Cost price − Selling price
C. Addition only
D. Constant
Answer: A
Rationale: Gain from sale.

6. Loss is:
A. Cost price − Selling price
B. Selling price − Cost price
C. Profit only
D. Interest
Answer: A
Rationale: Negative gain.

7. Profit percentage is based on:
A. Cost price
B. Selling price
C. Revenue only
D. Time only
Answer: A
Rationale: Standard base value.

8. Discount is:
A. Reduction in price
B. Increase in price
C. Interest
D. Tax only
Answer: A
Rationale: Price reduction.

9. Marked price is:
A. Listed price before discount
B. Final price
C. Cost price
D. Profit only
Answer: A
Rationale: Display price.

, 10. Net price is:
A. Price after discount
B. Marked price
C. Cost price
D. Profit
Answer: A
Rationale: Final payable amount.

11. VAT stands for:
A. Value Added Tax
B. Variable Asset Tax
C. Volume Added Total
D. Value Average Tax
Answer: A
Rationale: Consumption tax.

12. Break-even point is where:
A. Revenue = Cost
B. Profit is maximum
C. Loss is maximum
D. Zero sales
Answer: A
Rationale: No profit or loss.

13. Fixed cost is:
A. Constant regardless of output
B. Changes with output
C. Zero always
D. Revenue only
Answer: A
Rationale: Unchanging cost.

14. Variable cost changes with:
A. Output level
B. Time only
C. Profit only
D. Interest only
Answer: A
Rationale: Depends on production.