Accounting Fundamentals Certification (AFC) Practice Test

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Prepare for the Accounting Fundamentals Certification (AFC) Exam. Hone your skills with interactive flashcards and multiple-choice queries, equipped with detailed explanations. Equip yourself for certification success!

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What are Elizabeth's gross earnings for the week if her salary is 296.00 and her commission from sales of 63,255 is 1%?

900.00
928.55
1,050.00
1,200.00

The correct answer is: 928.55

To determine Elizabeth's gross earnings for the week, you need to consider both her salary and her commission from sales. Elizabeth's salary is straightforward: she earns a fixed amount of $296.00 for the week. Next, we need to calculate her commission. She receives 1% of her total sales, which amounts to $63,255. To find the commission, multiply the sales amount by the commission rate: \[ Commission = 63,255 \times 0.01 = 632.55 \] Now, you combine her salary and her commission to find her total gross earnings: \[ Gross Earnings = Salary + Commission \] \[ Gross Earnings = 296.00 + 632.55 = 928.55 \] Thus, Elizabeth's total gross earnings for the week amount to $928.55. This calculation correctly incorporates both components of her compensation, resulting in the total earnings calculated.