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PRAXIS Praxis Business Education: Content Knowledge (5101)Exam Sample Questions (Q54-Q59):

NEW QUESTION # 54
A company's financial statements show the following for the fiscal year: total assets of $1,200,000, total liabilities of $750,000, net income of $150,000, and dividends paid of $50,000. The company has no preferred stock, and the beginning retained earnings were $200,000. What is the company's ending retained earnings?

A. $350,000
B. $300,000
C. $250,000
D. $400,000

Answer: B

Explanation:
Retained earnings represent the cumulative net income retained by a company after dividends. The formula for ending retained earnings is: Ending Retained Earnings = Beginning Retained Earnings + Net Income # Dividends. Given the beginning retainedearnings of $200,000, net income of $150,000, and dividends of
$50,000, the calculation is: $200,000 + $150,000 # $50,000 = $300,000. Option A ($250,000) incorrectly omits net income or miscalculates dividends. Option C ($350,000) ignores dividends. Option D ($400,000) adds dividends instead of subtracting. This question tests advanced financial statement analysis, a critical component of the Accounting and Finance category, requiring precise application of the retained earnings formula under time pressure, typical of the Praxis 5101 exam's complexity.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Accounting and Finance; Financial Accounting, Chapter 11.

NEW QUESTION # 55
A business that installs a voiceprint system on its computer network is most likely concerned about

A. the currency of data
B. the security of data
C. the reliability of data
D. organizing files

Answer: B

Explanation:
A voiceprint system is a biometric security measure used to authenticate users and protect access to a computer network, indicating a primary concern for data security. Option A (currency) relates to data timeliness. Option B (reliability) concerns data accuracy. Option D (organizing files) is unrelated to voiceprint systems. This question aligns with the Information Technology category, emphasizing cybersecurity.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Information Technology; Cybersecurity Fundamentals, Chapter 5.

NEW QUESTION # 56
Which of the following is the most effective way for a company to address a service recovery problem?

A. Offering the customer an apology for the problem, and then assuming the issue has been resolved
B. Providing the customer with compensation for the problem, no matter the cost
C. Involving the customer, managers, and frontline employees to address and fix the problem
D. Having only customer service employees deal directly with the customer to solve the problem

Answer: C

Explanation:
Effective service recovery involves collaboration among the customer, managers, and frontline employees to understand and resolve the issue, ensuring satisfaction and learning. Option A limits involvement to customer service, potentially missing broader insights. Option C (apology only) may not resolve the issue. Option D (unlimited compensation) is unsustainable. This question aligns with the Management and Marketing category, focusing on customer service.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Management and Marketing; Services Marketing, Chapter 7.

NEW QUESTION # 57
Which of the following computer applications best fits the definition of computer-assisted instruction?

A. Word processing and desktop publishing
B. Database management
C. Tutorials and simulation software
D. Spreadsheets

Answer: C

Explanation:
Computer-assisted instruction (CAI) involves software designed to deliver educational content or simulate real-world scenarios, such as tutorials and simulation software, to facilitate learning. Option A (word processing and desktop publishing) is for document creation, not instruction. Option B (spreadsheets) is for data analysis, not teaching. Option D (database management) is for data organization, not educational delivery. This question aligns with the Information Technology category, emphasizing educational technology.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Information Technology; Educational Technology, Chapter 3.

NEW QUESTION # 58
Stacey has just received her first paycheck. As a responsible spender, Stacey pays her housing, food, and necessary clothing expenses first. The money that remains after paying those expenses is called

A. passive income
B. supplementary income
C. disposable income
D. discretionary income

Answer: D

Explanation:
Discretionary income is the money remaining after paying for necessities like housing, food, and clothing, available for non-essential spending. Option A (disposable income) is income after taxes, including money for necessities. Option C (supplementary income) is not a standard term. Option D (passive income) is earned without active work, like investments. This question aligns with the Accounting and Finance category, emphasizing personal finance.
Reference:ETS Praxis Business Education: Content Knowledge (5101) Study Companion, Section on Accounting and Finance; Personal Finance, Chapter 3.

NEW QUESTION # 59
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