Jerry owns an ice cream parlor. His starting balance last month was $1,900. His ending balance was $2,200. What is Jerry's burn rate?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the GMetrix Marketing Test. Utilize flashcards and multiple choice queries, with each query featuring hints and explanations to bolster your understanding. Excel in your exam preparation journey!

Multiple Choice

Jerry owns an ice cream parlor. His starting balance last month was $1,900. His ending balance was $2,200. What is Jerry's burn rate?

Explanation:
Burn rate shows how much cash is used over a period, based on the change in cash from start to end. Here the balance rose from 1,900 to 2,200, a change of 2,200 − 1,900 = 300. Since cash wasn’t spent but increased, the burn rate is the negative of that change, which is −$300. This means the business didn’t burn through cash; it actually gained cash. The other options would either imply spending more cash than was available or unrealistically large changes that don’t match the given balances.

Burn rate shows how much cash is used over a period, based on the change in cash from start to end. Here the balance rose from 1,900 to 2,200, a change of 2,200 − 1,900 = 300. Since cash wasn’t spent but increased, the burn rate is the negative of that change, which is −$300. This means the business didn’t burn through cash; it actually gained cash. The other options would either imply spending more cash than was available or unrealistically large changes that don’t match the given balances.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy