Cumulative level test: Cost, remittance and cash-flow arithmetic

Check understanding, separately from reading

10 questions · 80% to pass · no timer. This longer test revisits both units in the level. These authored questions assess recognition and application of the taught distinctions, not professional qualification. You may review the lessons and retry. Repeat attempts reuse the question bank; a remembered answer is not proof of transfer to a new situation.

Saving a lesson records reading only. Previous lesson completions have not been converted into passing scores. You can continue reading without a pass; the assessment remains unpassed.

Question 1

Harbor: gross $50,000, factor 1.3, fees $2,500. Purchased amount = $50,000 × 1.3 = $65,000. Net = $50,000 − $2,500 = $47,500. Purchased minus net = $17,500. No other costs are assumed in this illustration.

Owner: “How much can I actually spend from this advance?”$47,500, assuming the only deductions are the stated $2,500 fees.The headline $50,000 is all usable, regardless of deductions.

Question 2

Harbor’s 1.3 factor produces $65,000 on $50,000 before accounting for deducted fees. The same purchased amount collected more quickly has different annualized economics. We deliberately do not invent an APR from an incomplete schedule.

Owner: “Is that factor my annual interest rate?”Yes. Subtract one from the factor and call the result the annual rate.No. We need the dated funding, fees and payment schedule and the applicable APR disclosure.

Question 3

Assume $65,000 over 100 scheduled debit days: $650 per day. Five debit days = $3,250; a 20-debit-day month = $13,000, while 23 debit days = $14,950. These are calendar scenarios, not universal monthly equivalents.

Owner: “Can I budget every month as four debit weeks?”No. Count actual scheduled debit days and overlay payroll and bills.Yes. Every month contains exactly four payment weeks.

Question 4

Illustrative share: 10% of $4,000 eligible daily receipts = $400; 10% of $3,000 = $300. A fixed $650 debit does not automatically become either amount. The agreement’s revenue definition and adjustment process control the actual transaction.

Owner: “Sales fell, so tomorrow’s fixed debit must drop automatically?”Yes. The word reconciliation guarantees an automatic change tomorrow.Not necessarily. Let us verify and use the written reconciliation procedure with accurate records.

Question 5

Fictional weekly receipts $12,000 minus operating outflows $8,500 = $3,500 before financing. Less $3,250 remittance leaves $250. If receipts fall to $10,800 and costs stay fixed, room is $2,300 and residual is -$950. No other obligations assumed; add them if present.

Owner: “The base case is positive, so is this safe?”No. The thin base cushion and negative stress result require further review and possibly no financing.Yes. Any positive base residual proves suitability.

Question 6

Old schedule: $3,000 weekly × 12 remaining weeks = $36,000. Replacement: $1,500 × 28 weeks = $42,000, assuming it fully retires the old obligations and no separate fees. Weekly relief = $1,500; extra total future outlay = $6,000.

Owner: “Which statement honestly describes this comparison?”The lower weekly payment proves both immediate relief and lower total cost.Weekly relief is $1,500, but total future outlay increases by $6,000.

Question 7

Fictional weekly old debits $7,000 plus new debit $4,000 = gross outflow $11,000. With a $6,500 new deposit, net outflow is $4,500. If that deposit stops while debits remain, outflow is $11,000. This is a one-period stress illustration, not total cost.

Owner: “My new debit is the whole weekly burden?”No. Include old debits and subtract only disbursements actually received under the schedule.Yes. Old debits disappear from the budget when a new deposit is promised.

Question 8

Invoice $20,000; advance 80% = $16,000. One assumed fee of 3% of invoice face = $600. Reserve release = $20,000 − $16,000 − $600 = $3,400. Total received = $19,400, assuming full collection and no other charges.

Owner: “The reserve is another fee that I never receive?”Yes. All withheld funds always belong to the factor permanently.Not necessarily; distinguish held funds from fees and confirm the conditions and timing for release.

Question 9

Example A: limit $50,000 less drawn $22,000 = $28,000 before restrictions. Separate Example B: a constant $24,000 balance at 12% nominal annual rate for 30 days on an actual/360 simple-interest convention gives $240. No fees, compounding or balance changes assumed.

Owner: “That interest example proves my line has no other costs?”No. It excludes fees and uses a stated day-count assumption; we must read the actual terms.Yes. Simple interest automatically includes every draw and service fee.

Question 10

Example A assumes $30,000 principal, no interest or fees, and 20 principal payments of $500: remaining balloon $20,000. Example B: equipment lease cash outlay = $10,000 upfront + 48 payments of $1,000 + $2,000 buyout = $60,000, before tax, insurance or maintenance.

Owner: “Can I ignore the buyout and final balloon when comparing?”Yes. Only the recurring installment is a financing cost.No. Include them and verify the cash source or ownership choice at the end.

Continuing does not mark this assessment passed.

Progress stays in this browser, on this device—not an account or cloud backup. Clearing browser data removes it. Visits never count as study. Previous untimed legacy completions are not invented as study days.