FBLA BUSINESS MATH EXAM
QUESTIONS WITH COMPLETE
SOLUTIONS
Bond discount - ANSWER-When the amount of market value is less than the par value
Bond premium - ANSWER-When the market value of a bond is more than par value
Bonds - ANSWER-Written promise to repay in money loaded on the due date
Bonus - ANSWER-Pay given to reward employees who make a significant contribution
to the success of the company or whose work record is exceptional
Book value - ANSWER-Original cost less total depreciation date
Break-even point - ANSWER-The point at which income from sales equals total costs of
producing and selling goods
Budget - ANSWER-Future spending goals
Byte - ANSWER-A character stored in a computer system
Capital Investment - ANSWER-The amount of cash you originally invested plus
anything you spent for improvements
Carrying costs - ANSWER-The cost of holding inventory until it is issued
Cash advance - ANSWER-The cash received when money is borrowed on a credit card
Cash discount - ANSWER-Discount given for early payment of a bill
Cash payments record - ANSWER-A written record of money paid out.
Cash receipts record - ANSWER-A written record of money paid out
Cash value - ANSWER-The value of an insurance policy if it is cancelled; cash
surrender value
Certificate of deposit (CD) - ANSWER-A time deposit or savings certificate
Check register - ANSWER-A record of deposits and checks
, Circle graph - ANSWER-A circle showing how parts relate to the whole and to each
other
Closing costs - ANSWER-Fees and expenses paid to complete the transfer of
ownership of a home.
Coinsurance - ANSWER-When the insured and the insurer share losses or costs.
Collision - ANSWER-Auto insurance that covers damage to the insured's car
Commission - ANSWER-A payment amount to a salesperson that may be an amount
for each item sold or it may be a percent of the dollar value of sales.
Compound amount - ANSWER-The total in a savings account at the end of an interest
period after compound interest is added.
Compound interest - ANSWER-The difference between the original principal and the
compound amount; interest figured on interest after it has been added to principal
Comprehensive damage - ANSWER-insurance that covers damage or loss to your
behicle from fire, theft, vandalism, and other causes,
Computer hardware - ANSWER-May include different sized devices such as handheld
computers, notebook computers, desktop computers, and large computer systems.
Consumer price index (CPI) - ANSWER-A single number used to measure a change in
consumer prices compared to a base year.
Contract employees - ANSWER-Temporary employees who receive their paychecks
and benefits from the employment agency.
Cost of goods sold - ANSWER-The amount paid by the seller for the goods sold.
Cost of Living Adjustment (COLA) - ANSWER-A wage increase based on changes in
the consumer price index (CPI)
Credit memo - ANSWER-A form that tells the buyer that the buyer's account has been
reduced
Current ratio - ANSWER-Compares current assets to current liabilities
Current yield on bonds - ANSWER-Found by dividing the bond's annual interest income
by the bond's price
Declining balance method - ANSWER-A way of figuring depreciation at a fixed rate on a
decreasing balance; fixed-rate method
QUESTIONS WITH COMPLETE
SOLUTIONS
Bond discount - ANSWER-When the amount of market value is less than the par value
Bond premium - ANSWER-When the market value of a bond is more than par value
Bonds - ANSWER-Written promise to repay in money loaded on the due date
Bonus - ANSWER-Pay given to reward employees who make a significant contribution
to the success of the company or whose work record is exceptional
Book value - ANSWER-Original cost less total depreciation date
Break-even point - ANSWER-The point at which income from sales equals total costs of
producing and selling goods
Budget - ANSWER-Future spending goals
Byte - ANSWER-A character stored in a computer system
Capital Investment - ANSWER-The amount of cash you originally invested plus
anything you spent for improvements
Carrying costs - ANSWER-The cost of holding inventory until it is issued
Cash advance - ANSWER-The cash received when money is borrowed on a credit card
Cash discount - ANSWER-Discount given for early payment of a bill
Cash payments record - ANSWER-A written record of money paid out.
Cash receipts record - ANSWER-A written record of money paid out
Cash value - ANSWER-The value of an insurance policy if it is cancelled; cash
surrender value
Certificate of deposit (CD) - ANSWER-A time deposit or savings certificate
Check register - ANSWER-A record of deposits and checks
, Circle graph - ANSWER-A circle showing how parts relate to the whole and to each
other
Closing costs - ANSWER-Fees and expenses paid to complete the transfer of
ownership of a home.
Coinsurance - ANSWER-When the insured and the insurer share losses or costs.
Collision - ANSWER-Auto insurance that covers damage to the insured's car
Commission - ANSWER-A payment amount to a salesperson that may be an amount
for each item sold or it may be a percent of the dollar value of sales.
Compound amount - ANSWER-The total in a savings account at the end of an interest
period after compound interest is added.
Compound interest - ANSWER-The difference between the original principal and the
compound amount; interest figured on interest after it has been added to principal
Comprehensive damage - ANSWER-insurance that covers damage or loss to your
behicle from fire, theft, vandalism, and other causes,
Computer hardware - ANSWER-May include different sized devices such as handheld
computers, notebook computers, desktop computers, and large computer systems.
Consumer price index (CPI) - ANSWER-A single number used to measure a change in
consumer prices compared to a base year.
Contract employees - ANSWER-Temporary employees who receive their paychecks
and benefits from the employment agency.
Cost of goods sold - ANSWER-The amount paid by the seller for the goods sold.
Cost of Living Adjustment (COLA) - ANSWER-A wage increase based on changes in
the consumer price index (CPI)
Credit memo - ANSWER-A form that tells the buyer that the buyer's account has been
reduced
Current ratio - ANSWER-Compares current assets to current liabilities
Current yield on bonds - ANSWER-Found by dividing the bond's annual interest income
by the bond's price
Declining balance method - ANSWER-A way of figuring depreciation at a fixed rate on a
decreasing balance; fixed-rate method
