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DSST Business Math

  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. What happens when your sales are higher than your expenses - etc.

2. After 4 years - $5 -000 will grow to how much if it earns 10% interest?

3. Convert .4 to a percent

4. 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?

5. total fixed costs/ selling price-variable cost

6. 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

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

8. Beginning inventory + Purchases - Ending inventory

9. Convert 56% to a decimal

10. Liabilities - capital - income

11. BOM $ Stock/ Sales for period

12. The average person will have _ jobs in their lifetime.

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

14. Aka - the terminal value of an investment to which equal annual amounts will be added S=[A(R^n -1)]/R-1 Where: S=the terminal value A=the first term R=the common ratio n=the number of terms

15. Sales - cost of goods sold

16. accounts receivable/ average daily sales

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

18. Convert 65% to a decimal

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

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

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

22. When refunds or retail price reductions are given to customers - these activities reduce the value of this (also known as initial sales). formula: GS = NS + RED; GS$ = NS$ X GS%

23. Convert 41/100 to a percent

24. A plane flies 980 miles in 1 2/3 hours. How many miles does the plane average per hour

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

26. Convert 14% to a fraction

27. The wholesale cost of goods plus the markup

28. If freight is to be paid by the seller - the shipping terms are...

29. 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)

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

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

32. Formula: GM = NS - COG; GM$ = NS$ X GM%

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

34. Turning assets into cash.

35. 1. develop a vision statement for the company - 2. scan the internal and external environments - 3. determine issues critical to the company - 4. select the problem to be solved - 5. determine the specific strategy to achieve the solution - 6. identi

36. (TY-LY)/ LY or (Plan-Actual)/

37. $ RETAIL X (100 - GM %) / 100

38. Convert .36 to a percent

39. A/b - c/b = a-c/b

40. Net Sales for period/ Avg Stock for period

41. (Retail - Cost)/ Retail

42. ($ Retail x 100 / COST) - 100

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

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

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

46. Outside numbers in a ratio.

47. 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?

48. The cost of moving from the vendor's warehouse (loading dock) to the retail warehouse or store (loading dock) - may also include insurance to cover the merchandise while in transit

49. Units Sold/ (Units Sold + On Hand Inventory)

50. An electronics store is having a 40 percent off sale. Robert has been saving to purchase a stereo system that was originally priced at $420. If Robert purchases the system during the sale - what will be the cost?