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DSST Business Math

Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Convert 56% to a decimal






2. X=S*[1/(1+r)^n] Where: S=the sum to be received after n time periods X=the present value of that sum r=the rate of return (as a proportion) n=the number of time periods - r - rate - is sometimes called cost of capital






3. cash + receivables/ current liabilities.






4. A form of closed-end credit used for purchasing durable goods such as cars






5. End of month; dating starts with the end of the month and the invoice is to be paid within the specified number of days after the end of the month in which goods are invoiced; ex: 8/10 EOM - n/90






6. When sales plans are underestimated and the stock purchases result in a low inventory






7. Loss of items due to damaged goods - stealing - etc.






8. S=X+nrX Where: X=the original sum invested r=the interest rate (as a proportion - e.g. 0.05=5%) n=the number of periods S=the sum invested after n periods (capital + interest) - e.g. invest $1000 @ 10% simple interest for 5 years = 1000+(50.101000)






9. Alignment of the decimals is not important






10. accounts receivable/ average daily sales






11. Cash on delivery; this dating is used when the vendor does not know the retailer or the retailer does not have a strong line of credit






12. What is the product of 3.26 and 0.4?






13. $ Markdown/ $ Net Sales (multiply result by 100 to express as percentage)






14. Two equivalent ratios joined by an equal sign.






15. You should never take out more than a _ year mortgage.






16. Divide the result by 1+the increase proportion eg) X=16/(1+0.25) = 12.8 - 16 is a 25% increase over 12.8






17. Divide the result by 1-the decrease proportion - eg) X=16/(1-0.25)=21.33 - 16 is a 25% decrease of 21.33






18. Shortage$ = book$ - physical count$; shortage% = shortage$/NS$






19. Receipt of goods; the cash discount period and net period begin with the date of receipt of goods; ex: 8/10 ROG - n/30






20. Convert 70/100 to a percent






21. Convert 70% to a decimal






22. The average car will lose _% of its value in the first 4 years.






23. Multiply the number by 1+the increase proportion - e.g. 16(1+0.25) = 161.25 = 20 - 20 is a 25% increase over 16






24. Gross margin dollars/Net sales dollars (multiply by 100 to express as percentage) or (Selling price - cost) x 100 / Selling price






25. After all discounts have been applied to find net amount due. $100 -25% less trade discount -4% cash discount # + $20 freight!






26. Rose borrowed money to buy a ring priced at $420. When she repaid the loan at the end of 3 months - the interest charge was $31.50. What was the rate of interest?






27. current assets/ current liabilities






28. Original retail price - Lower retail price






29. Convert 3 to a percent






30. Convert .36 to a percent






31. cost of an item expressed per unit of measure or count.






32. Date of invoice - the cash discount terms will have no dating within the discount statement; ex: 4/10 - n/30






33. Another name for the P & L statement mainly used by managers planning sales or accountants formulating analyses






34. Convert 1/4 to a percent






35. Start with list price - List price: $6400 x 25% - x 10% - x10% % - Taken one after another(subtract)






36. A value or an expression of how fast merchandise moves through the store; also called turn. formula: turn - NS$ / Average Stock$ (average stock$ = BOM$ + EOM$)/(#BOM + 1)






37. Turning assets into cash.






38. A team won 16 games and lost 9 games. What percent of games did the team lose?






39. (Retail - Cost)/ Retail






40. Multiply the number by 1-the decrease proportion - e.g. 16(1-0.25) = 160.75 = 12 - 12 is a 25% decrease of 16






41. The sum of the cost of doing business - except the cost of goods; they include such items as sales persons' salaries - bags - paper and pencils - and cleaning of carpets...






42. $ Cost/ (100%-markup%)






43. What happens when your expenses - etc. are higher than your sales






44. The value of the inventory as kept in the handwritten ledgers or computer system; formula: book$ = merchandise available$ - NS$ - (MD$ + ED$)






45. Commissions - fees for service - merchandise sales - rental income - royalties






46. Accounts payable - bonds - notes payable (bank loans) - provisions for pensions






47. Cash or assets that can quickly be converted into cash.






48. The wholesale cost of an item (cost of goods - or COG)






49. Planned Sales + Planned Markdowns + Planned EOM - Planned BOM






50. To take advantage of the 6% cash discount - a retailer made a $2 -000 partial payment during the discount period. How much was the retailer credited for the $2 -000 partial payment?