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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. What happens when your expenses - etc. are higher than your sales
when multiplying numbers that contain decimals:
$ COST
underbought
loss
2. Multiply the number by 1+the increase proportion - e.g. 16(1+0.25) = 161.25 = 20 - 20 is a 25% increase over 16
improper
To increase a number by a given percentage - e.g. increase 16 by 25%
gross margin
loss
3. Units Sold/ (Units Sold + On Hand Inventory)
Sell Thru %
$2 -127.66
Stock to Sales Ratio
Margin %
4. Capital stock - owner's equity (owner's funds invested in the business)
Mark Up %
$2 -127.66
types of capital
$ Retail
5. Convert 1/4 to a percent
25%
GMROI
378 63
DOI
6. 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%
.65
Current Ratio
gross sales
20%
7. Convert 1.25 to a percent
Extremes
125%
percent decrease
70%
8. Original retail price - Lower retail price
Markdown %
90.9%
percent decrease
$ Markdown
9. The average car will lose _% of its value in the first 4 years.
60
Current Assets
To increase a number by a given percentage - e.g. increase 16 by 25%
.7
10. $ Markdown/ $ Net Sales (multiply result by 100 to express as percentage)
Markdown %
4%
2.5% per month
Adding Fractions
11. The difference between the retail price and the cost of goods sold; it includes operating expenses - retail reductions - and profit
$2 -127.66
Proportion
3%
Markup
12. Convert 50% to a fraction
$ Markdown
50/100
To find the number from which a percentage has been deducted to achieve it - e.g. of what number is 16 a 25% decrease?
Mark Up %
13. Planned Sales + Planned Markdowns + Planned EOM - Planned BOM
OTB (retail)
78
income statement
$ Cost
14. 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)
Adding Fractions
profit and loss statement
.7
Simple interest formula
15. A/b + c/b = (a+c)/b
.56
Adding Fractions
.7
Gross margin dollars
16. Date of invoice - the cash discount terms will have no dating within the discount statement; ex: 4/10 - n/30
percent
DOI
cost of goods sold formula (COGS)
Stock to Sales Ratio
17. A form of closed-end credit used for purchasing durable goods such as cars
Margin %
Sell Thru %
installment loan
Markdown %
18. Receipt of goods; the cash discount period and net period begin with the date of receipt of goods; ex: 8/10 ROG - n/30
Multiplying Fractions
shortage
Turnover
ROG
19. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods
Sell Thru %
378 63
Effective annual rate of interest formula
per hundred
20. Total Net Sales / Total Number of Transactions
overbought
Internal Rate of Return
With cash discounts and calculating net price - when to add freight
Sales per Transaction
21. Loss of items due to damaged goods - stealing - etc.
Subtracting Fractions
$2 -127.66
types of expenses
shrinkage
22. If freight is to be paid by the seller - the shipping terms are...
FOB destination
steps in strategic planning
378 63
shrinkage
23. 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
$2 -127.66
COD
Margin %
types of expenses
24. Aka - the terminal value of an investment to which equal annual amounts will be added S=[A(R^n -1)]/R-1 Where: S=the terminal value A=the first term R=the common ratio n=the number of terms
underbought
% increase or decrease
.56
The sum of a Geometric Progression
25. Another name for the P & L statement mainly used by managers planning sales or accountants formulating analyses
25
shrinkage
net sales
income statement
26. Convert 70% to a decimal
cost of goods sold formula (COGS)
16-18
.7
overbought
27. S=X(1+r1)^y(1+r
1.304
Compound interest formula with changing rates
Dividing Fractions
netprice with a 25/10/10 series discount
28. Convert 65% to a decimal
.65
operating expenses
Means
percent decrease
29. The value of the inventory as kept in the handwritten ledgers or computer system; formula: book$ = merchandise available$ - NS$ - (MD$ + ED$)
COD
book value
Stock to Sales Ratio
increase=credit
30. Two equivalent ratios joined by an equal sign.
types of capital
Proportion
per hundred
Sell Thru %
31. Alignment of the decimals is not important
Margin %
.56
when multiplying numbers that contain decimals:
80/100
32. The wholesale cost of goods plus the markup
50/100
Retail
588 mph
improper
33. The point at which you stop losing money.
41%
types of capital
Break Even Point
588 mph
34. When slaes plans are overestimated and the stock purchases result in a stockpiled inventory
20%
shrinkage
50/100
overbought
35. Gross Margin/ Average Inventory Cost
78
GMROI
Break Even Point Formula
when multiplying numbers that contain decimals:
36. You should never take out more than a _ year mortgage.
15
14/100
588 mph
netprice with a 25/10/10 series discount
37. A count of every item on the floor - in stock rooms - warehouse - etc. to determine whether shortages or overages are occuring
physical inventory
types of assets
Quick Ratio
installment loan
38. Advertising - bad debt expense - conributions and donations - depreciation - educational expense - insurance - interest expense - licenses - office supplies - postage - rent - repairs - salaries and wages - supplies - taxes - travel and transportatio
types of expenses
physical inventory
gross sales
Current Ratio
39. Overage$ = book$ - physical count$; overage% = overage$/NS$
overages
Average Collection Turnover
Average Daily Sales
Inventory Turnover Rate
40. A plane flies 980 miles in 1 2/3 hours. How many miles does the plane average per hour
Means
Liquidity
588 mph
increase=credit
41. Commissions - fees for service - merchandise sales - rental income - royalties
types of liabilities
types of incomes
underbought
netprice with a 25/10/10 series discount
42. Divide the result by 1-the decrease proportion - eg) X=16/(1-0.25)=21.33 - 16 is a 25% decrease of 21.33
cost of goods sold formula (COGS)
62%
To find the number from which a percentage has been deducted to achieve it - e.g. of what number is 16 a 25% decrease?
2.5% per month
43. A team won 16 games and lost 9 games. What percent of games did the team lose?
increase=debit
types of liabilities
When Dividing With Exponents
36%
44. Turning assets into cash.
types of capital
installment loan
Liquidity of Assets
book value
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
Average Daily Sales
.65
EOM (in terms of invoice)
46. A fraction in which the denominator is equal to or less than the numerator is a(an) ______________ fraction.
41%
To decrease a number by a given percentage - e.g. decrease 16 by 25%
Average Collection Turnover
improper
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?
ROG
$2 -127.66
Average Collection Turnover
% increase or decrease
48. Wholesale cost
41%
COD
Mark Up %
cost of goods
49. Beginning inventory + Purchases - Ending inventory
Unit pricing
Turnover
when multiplying numbers that contain decimals:
cost of goods sold formula (COGS)
50. Convert .4 to a percent
14/100
15
4%
$ Markdown