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Test your basic knowledge |
DSST Business Math
Start Test
Study First
Subjects
:
dsst
,
math
,
business-skills
,
business-math
,
bvat
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. IRR=1 + [(NPV1/NPV1-NPV2)(2-1)]% Where: 1=one interest rate 2=the other NPV1=the NPV at rate 1 NPV2=the NPV at rate 2 (NPV = Net Present Value)
Internal Rate of Return
To find the number from which a percentage has been deducted to achieve it - e.g. of what number is 16 a 25% decrease?
types of liabilities
Sell Thru %
2. 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...
Gross margin dollars
operating expenses
increase=debit
transportation
3. The difference between the retail price and the cost of goods sold; it includes operating expenses - retail reductions - and profit
GMROI
To decrease a number by a given percentage - e.g. decrease 16 by 25%
types of incomes
Markup
4. Convert 70/100 to a percent
Internal Rate of Return
To increase a number by a given percentage - e.g. increase 16 by 25%
36%
70%
5. Multiply the number by 1+the increase proportion - e.g. 16(1+0.25) = 161.25 = 20 - 20 is a 25% increase over 16
To find the number from which a percentage has been deducted to achieve it - e.g. of what number is 16 a 25% decrease?
To increase a number by a given percentage - e.g. increase 16 by 25%
Markdown %
3%
6. What does percent mean?
Markdown %
per hundred
80/100
15
7. A/b
Markup
Multiplying Fractions
Average Collection Turnover
60
8. BOM $ Stock/ Sales for period
types of liabilities
1.304
Stock to Sales Ratio
$252
9. ($ Retail x 100 / COST) - 100
The sum of a Geometric Progression
$ Retail
125%
Mark Up %
10. Convert 70% to a decimal
.7
62%
$ Retail
$6 -655.50
11. When sales plans are underestimated and the stock purchases result in a low inventory
underbought
Average Collection Turnover
$ Markdown
Inventory Turnover Rate
12. Alignment of the decimals is not important
COD
Adding Fractions
when multiplying numbers that contain decimals:
Sales per Transaction
13. After all discounts have been applied to find net amount due. $100 -25% less trade discount -4% cash discount # + $20 freight!
78
.65
With cash discounts and calculating net price - when to add freight
3%
14. If freight is to be paid by the seller - the shipping terms are...
Mark Up %
Subtracting Fractions
Current Ratio
FOB destination
15. 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
$ Retail
EOM (in terms of invoice)
Cost
COD
16. Convert 1/4 to a percent
25%
percent
types of capital
Simple interest formula
17. Convert 56% to a decimal
increase=credit
Extremes
$ Markdown
.56
18. 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?
With cash discounts and calculating net price - when to add freight
$2 -127.66
increase=debit
Current Ratio
19. GMROII = GM% x (Sales / Average Value of Inventory)
profit
Multiplying Fractions
Gross Margin Return On Inventory Investment (GMROII)
underbought
20. S=X(1+r1)^y(1+r
percent decrease
net sales
To increase a number by a given percentage - e.g. increase 16 by 25%
Compound interest formula with changing rates
21. Wholesale cost
overbought
Markdown %
installment loan
cost of goods
22. accounts receivable/ average daily sales
Effective annual rate of interest formula
62%
Average Collection Turnover
$ Markdown
23. Convert .36 to a percent
15
Current Assets
14/100
36%
24. (Retail - Cost)/ Retail
Effective annual rate of interest formula
types of assets
Margin %
With cash discounts and calculating net price - when to add freight
25. Total Net Sales / Total Number of Transactions
Sales per Transaction
To decrease a number by a given percentage - e.g. decrease 16 by 25%
Margin %
Extremes
26. After 4 years - $5 -000 will grow to how much if it earns 10% interest?
Average Collection Turnover
To decrease a number by a given percentage - e.g. decrease 16 by 25%
overbought
$6 -655.50
27. cash + receivables/ current liabilities.
Stock to Sales Ratio
GMROI
Quick Ratio
Average Collection Turnover
28. Convert 65% to a decimal
15
when multiplying numbers that contain decimals:
.65
25%
29. The point at which you stop losing money.
70%
Break Even Point
GMROI
shortage
30. A formal document that is used for a variety of functions within a retail business; it provides a big picture look at the succinct expression of the sales - markup - and profit for a business
Retail
Average Daily Sales
To decrease a number by a given percentage - e.g. decrease 16 by 25%
profit and loss statement
31. Actual retail sales; the retail price at which one tiem is sold is combined with the retail prices of all the items that are sold to become the net sales amount.
types of incomes
operating expenses
Discounting Formula
net sales
32. Accounts receivable - buildings - cash - copyrights - equiptment - furniture and fixtures - land - tomor vehicles
types of assets
GMROI
Break Even Point
78
33. Liabilities - capital - income
16-18
cost of goods sold formula (COGS)
increase=credit
$ Markdown
34. Convert .4 to a percent
FOB destination
Gross margin dollars
4%
to determine equivalent single discount rate for 25/10/10 series discount
35. 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)
Gross margin %
improper
stock turn
With cash discounts and calculating net price - when to add freight
36. $ retail x (100%-markup)
2.5% per month
stock turn
$ Cost
$6 -655.50
37. Two equivalent ratios joined by an equal sign.
types of liabilities
Proportion
net sales
$2 -127.66
38. A measure of the number of days needed to collect accounts receivable.
Extremes
Average Collection Turnover
125%
Average Daily Sales
39. $ Markdown/ $ Net Sales (multiply result by 100 to express as percentage)
Markup
when multiplying numbers that contain decimals:
gross sales
Markdown %
40. A count of every item on the floor - in stock rooms - warehouse - etc. to determine whether shortages or overages are occuring
Current Assets
To increase a number by a given percentage - e.g. increase 16 by 25%
When Dividing With Exponents
physical inventory
41. A^m/a^n = a^(m-n)
When Dividing With Exponents
overbought
Sales per Transaction
stock turn
42. Divide the result by 1+the increase proportion eg) X=16/(1+0.25) = 12.8 - 16 is a 25% increase over 12.8
underbought
Break Even Point
Liquidity
Of what number 16 is a 25% increase
43. The average car will lose _% of its value in the first 4 years.
cost of goods
Liquidity of Assets
60
Quick Ratio
44. Date of invoice - the cash discount terms will have no dating within the discount statement; ex: 4/10 - n/30
increase=debit
$252
DOI
operating expenses
45. End of month; dating starts with the end of the month and the invoice is to be paid within the specified number of days after the end of the month in which goods are invoiced; ex: 8/10 EOM - n/90
Discounting Formula
Inventory Turnover Rate
to determine equivalent single discount rate for 25/10/10 series discount
EOM (in terms of invoice)
46. Overage$ = book$ - physical count$; overage% = overage$/NS$
Mark Up %
Gross margin %
overages
$ COST
47. A form of closed-end credit used for purchasing durable goods such as cars
Liquidity
Stock to Sales Ratio
installment loan
$ COST
48. The wholesale cost of goods plus the markup
per hundred
Retail
20%
Quick Ratio
49. Turning assets into cash.
To increase a number by a given percentage - e.g. increase 16 by 25%
$2 -127.66
Cost
Liquidity of Assets
50. A plane flies 980 miles in 1 2/3 hours. How many miles does the plane average per hour
588 mph
ROG
25
operating expenses