DR.

Berihan Elemary Badr University

Spring 2020/2021 Financial Mathematics Faculty of Business

Sample of MCQ’s Questions

1. Equation is a mathematical statement with an equal sign showing that a

mathematical expression on the left equals the mathematical expression on the
right.
A. True
B. False
ANSWER: A

2. Solve the unknown from the following equation: X+64=98

A. x=34
B. x=2.89
C. x= -34
D. None
ANSWER: A

3. ICM Company sold 4 times as many computers as Ring Company. The difference
in their sales is 27. How many computers of Ring company were sold?
A. 27
B. 9
C. 36
D. 4
ANSWER: B

4. A man spends 2/7 of his $1900 salary on loans. How much many Spend with him?
(Round your answer to the nearest hundredth)
A. 542.86
B. 500
C. 540
D. 542
ANSWER: A

5. In solving equation whatever you do to one side of an equation, you must do to

the other side.
A. True
B. False
ANSWER: A

6. Solve for the Unknown x: -5(x +1) = -3(x – 1) + 3x + 2

A. x=0
B. x=1
C. x= -2
D. None
ANSWER: C

7. ICM Company sold 4 times as many computers as Ring Company. The difference
in their sales is 27. How many computers of Ring company were sold?
A. 27
B. 9
C. 36

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DR. Berihan Elemary Badr University
Spring 2020/2021 Financial Mathematics Faculty of Business

D. 4
ANSWER: B

8. ROG means that Cash discount period begins when the buyer receives the goods.
A. True
B. False
ANSWER: A

9. If $900 invoice dated May 9, received goods July 8; terms 3/10, n/30 ROG; paid
on July 20 when the end of credit period?
A. July 8
B. July 18
C. August 7
D. May 9
ANSWER: C

10. The price of a Macintosh computer is $2,700. The manufacturer offers a 40%
trade discount, the net price will equal $1080.
A. True
B. False
ANSWER: B
11. If $600 invoice dated July 6; terms 1/10 EOM; paid on August 10. what is the
cash discount?
A. $0
B. $6
C. $594
D. $600
ANSWER: B
12. The difference between the cost of bringing the goods into the store and the
selling price is
A. Cost
B. Markup
C. Operating Expenses
D. Net profit or Net Income
ANSWER: B

13. Gap buys fleece jackets for $18. They plan to sell them for $23. What is Gap
markup? What is the percent markup on cost?
A. $18 and $23
B. $5 and % 27.78
C. $41 and %27.78
D. $27.78 and 5%
ANSWER: B

14. An Electronics retail store sells mobile phones. A certain type of phones costs the
store $460. To make the desired profit, the store needs a 21% markup on selling
price, what is the selling price? (Round your answer to the nearest cent)

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DR. Berihan Elemary Badr University
Spring 2020/2021 Financial Mathematics Faculty of Business

A. $582.28
B. $556.60
C. $460
D. None
ANSWER: A

15. complement is the difference between the single discount rate and 100%. The
complement is what percentage the buyer will pay.
A. True
B. False
ANSWER: A

16. 1/10 EOM means that 1% discount, up until the 10th of the following month.
A. True
B. False
ANSWER: A

17. If $900 invoice dated May 9, received goods July 8; terms 3/10, n/30 ROG; paid
on July 20 when the end of discount period?
A. July 8
B. July 18
C. August 7
D. May 9
ANSWER: B

18. The price of a Macintosh computer is $2,700. The manufacturer offers a 40%
trade discount, the net price will equal $1080.
A. True
B. False
ANSWER: B

19. The price of office equipment is $15,000. With a chain discount of 20/15/10,
what is the net price?
A. $15,000
B. $10,200
C. $9,180
D. $12,000
ANSWER: C

20. For 2/10 EOM – Considered the “25th rule;” skip a month. If $800 invoice dated
April 29; terms 2/10 EOM; paid on June 18. what the amount of the following is
true
A. The cash discount will deserve with 2%.
B. No discount paid
ANSWER: B

21. The price retailers pay to a manufacturer or supplier is

A. Cost
B. Selling Price
C. Operating Expenses

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DR. Berihan Elemary Badr University
Spring 2020/2021 Financial Mathematics Faculty of Business

D. Net profit or Net Income

ANSWER: A

22. The regular expenses of doing business, such as rent, wages, utilities, etc.is
A. Cost
B. Markup
C. Operating Expenses
D. Net profit or Net Income
ANSWER: C

23. Sam Furniture bought a lamp for $100. To make Sam desired profit, he needs a
65% markup on cost. What is Sam dollar markup? What is his selling price?
A. $35.71 and $14.29
B. $14.29 and $35.71
C. $100 and $165
D. $165 and $35
ANSWER: B