Question 20 (2 points)

When an accountant says, "cost of goods sold," an economist might think

Question 20 options:

	Cost of services
	Operating expense
	Fixed cost
	Variable cost

Question 21 (2 points)

You have deposited $1,000 in a one-year CD at the bank. The CD pays 5% interest. How much money will you have in the CD at the end of one year?

Question 21 options:

	$1,000
	$1,005
	$1,050
	$1,500

Question 22 (2 points)

Cash is $5,000. Accounts payable are $22,000. Work in process is $6,000. Finished goods inventory is $5,500. Accounts receivable are $7,500. Calculate the quick ratio.

Question 22 options:

	0.57
	0.84
	1.09
	1.76

Question 23 (2 points)

An expansion will be profitable when revenue less expenses after expansion exceeds revenue less expenses prior to expansion.

Question 23 options:

	True
	False

Question 24 (2 points)

A unit contribution margin of $8 means:

Question 24 options:

	Each time a unit is sold, a business earns $8 that can be used to pay fixed costs
	Each time a unit is sold, a business makes a net profit of $8
	Each time a unit is sold, a business earns $8 that can be used to pay variable costs
	Each time a unit is sold, the cost of goods sold balance declines $8