*business math 9 questions*
1. the balance sheet contains these three elements of a business (1 point)
a. liabilities, capital, and cost of goods sold
b. assets, liabilities, and owner's equity
c. assets, liabilities, and total sales
d. assets, total sales, and net income
2. which of the following is not considered a current assets? (1 point)
a. cash
b. business equipment
c. note receivable
d. office supplies
3. using a base year and calculating each future amount as a percentage of the base year amount is called a (1 point)
a. horizontal analysis
b. ratio analysis
c. vertical analysis
d. common size
4. which of the following items is not a current liability? (1 point)
a. mortgage payable
b. accounts payable
c. taxes payable
d. wages payable
5. if the annual gross sales of the local ice cream shop total $82,649.00. and the net sales total $79,281.00, calculate the percentage of the net sales. (1 point)
a. 104.2
b. 95.8
c. 82.6
d. 101.9
6. the local ice cream shop has had a great month in sales. based on the information below, calculate the operating ratio.
• cost of goods sold= $2,500.00
• net sales= $18,200.00
• operating expenses= $4,350.00

a. 71 percent
b. 32 percent
c. 62 percent
d. 38 percent
7. joe’s bait shop brought in a gross profit in sales of $4,100.00 in the month of june. during the same month, their operating expenses totaled $1990.00. calculate the net income of the bait shop for the month of june. (1 point)
a. $2,110.00
b. $2,700.00
c. $210.00
d. $6,090.00

8. the formula for the gross profit margin ratio is (1 point)
a. net sales plus the cost of goods sold divided by net sales
b. gross margin divided by net sales
c. cost of goods sold divided by net sales
d. net sales minus operating expenses divided by net sales
9. at libby’s shoe store the gross sales for the month of december totaled $15,720.00 and a total of $925.00 was calculated in sales return and allowance calculate net sales for the month of december (1 point)
a. $16,645.00
b. $15,720.00
c. $14,795.00
d. $13,220.00