A Fort Myers startup budgets monthly overhead of $42,000 and wants a 3-month operating reserve. What reserve should be funded?
Correct Answer
B) $126,000
Startup reserve equals monthly overhead multiplied by the reserve months.
Why This Is the Correct Answer
Startup reserve equals monthly overhead multiplied by the reserve months.
Why the Other Options Are Wrong
Option A: $42,000 risk setup folder
$42,000 risk setup folder is below the supported result for startup reserve; it likely uses the wrong base, period, or account bucket.
Option C: $45,000 operations startup note
$45,000 operations startup note is below the supported result for startup reserve; it likely uses the wrong base, period, or account bucket.
Option D: $168,000 startup control file
$168,000 startup control file is above the supported result for startup reserve; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Startup Reserve drawer for Prepares Fort: label monthly before counting dollars.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Startup budgeting and working-capital planning; verify the startup duty, registration, or financial setup before answering.
More Business & Finance Questions
The Cedar Key subcontract closeout file requires 44 final releases, and 31 have been received. How many releases are missing?
A Florida GC prepaid $18,000 for annual insurance and expenses it evenly by month. After 7 months have expired, what prepaid asset remains?
The West Miami system access list starts with 22 active users, adds 4, and removes 7. How many active users should remain?
The Winter Park bank review shows a bank balance of $124,600, book balance of $119,400, and known timing items of $3,200. What unexplained difference remains?
The Riverview bank review shows a bank balance of $87,500, book balance of $90,400, and known timing items of $1,600. What unexplained difference remains?
A Satellite Beach contractor had 4 separations during the quarter and an average headcount of 32. What turnover rate should HR report?
A Winter Park startup budgets monthly overhead of $61,500 and wants a 4-month operating reserve. What reserve should be funded?
A Royal Palm Beach customer account has unpaid approved invoices of $126,000. Company policy requires review when unpaid invoices exceed $100,000. What status applies?
A Wildwood contractor had 9 separations during the quarter and an average headcount of 60. What turnover rate should HR report?
A Clermont field group had 64 absence hours out of 1280 scheduled hours. What absence rate should be reported?