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business math cumulative exam 1 (starts at chapter 3)

Terms in this set (434)

Mrs. Jones has received her bank statement and is ready to reconcile it with her checkbook register. Fill out the reconciliation worksheet for Mrs. Jones using the data from her bank statement and checkbook register. Assume all transactions on previous pages have already cleared.

Great Bank of Home and Work
KeepItSimple™ Statement for February 2010
Beginning balance (01/05/2010): $2340.00
Ending balance (02/04/2010): $1864.16

Total of credits: $0.00
Total of debits: $475.84

Date cleared - 01/05/2010
Description - Debit card purchase from XYZ Supermarket and Deli Limited
Amount - 145.44

Date cleared - 02/04/2010
Description - Check 1015, Bis Insurance of North America
Amount - $320.40

Date cleared - 02/04/2010
Description - Monthly service fee
Amount - $10.00

Reconciliation Worksheet
Amount
1. Enter the statement closing balance.
$
2. Enter the sum of any outstanding deposits or credits.
$
3. Add lines 1 and 2.
$
4. Enter the sum of any outstanding checks or debits.
$
5. Subtract line 4 from line 3.
$
6. Enter your checkbook balance.
$
Note: Lines 5 and 6 should be equal at the end of the reconciliation.


Mrs. Jones's checkbook register:
Date
Num
Payee
Payment
Clr
Deposit
Balance
1/1/2010

Balance forward

2,340.00
2,340.00
1/5/2010
Debit
XYZ Supermarket
145.44

2194.56
2/1/2010
1014
Rent
600.00

1594.56
2/1/2010
1015
Bis Insurance Company
320.40

1274.16
Consider what must be done, if anything, in order to finish the reconciliation process.
a.
Line 6 is $10.00 higher than line 5; look back at the statement to find the discrepancy.
b.
Any transaction that appears on the register must still be added to the bank statement.
c.
Add lines 5 and 6 together.
d.
The rent of $600 is in your checkbook but not on your bank statement.
As a part-time employee, Rachel does not qualify for any benefits from her current employer. Seeing a need for a health care program, Rachel went shopping for health insurance and is trying to decide between two options with a national health insurance provider. The benefits of each option are outlined in the tables below.
OPTION 1: Fee-for-service

OPTION 2: HMO

$225 monthly premium

$630 monthly premium
$7,500 deductible

No annual deductible

Co-pays:

Co-pays:
Name-brand Drugs:
$30

Name-brand Drugs:
$25
Generic Drugs:
$12

Generic Drugs
$10

Visits:

Visits:

Primary Care Physician
$30

Primary Care Physician
$20
Specialist:
$75

Specialist:
$62
Urgent Care:
$100

Urgent Care:
$50
Emergency Room:
$250

Emergency Room:
$175

The first option is a fee-for-service plan with a $7,500 deductible. Rachel must pay the deductible amount in health-related costs (not including co-pays) before the insurance company will contribute. This plan costs $225.00 per month and requires co-pays for most standard healthcare costs.
The second option is an HMO. It is significantly more expensive at $630 per month, but has no annual deductible. The standard co-pays are also less than those in the other option.
Rachel is a young lady with very few health care requirements. She anticipates one monthly visit to her primary care physician, and one annual visit to her allergy specialist. She has two generic prescription allergy medicines that need to be filled twice a month. If Rachel is able to stay healthy the entire year and does not accrue any additional health care costs, which of the following statements is true for her situation?