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






2. $ retail x (100%-markup)






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






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






5. Assets - cost of goods sold - expenses






6. Capital stock - owner's equity (owner's funds invested in the business)






7. Overage$ = book$ - physical count$; overage% = overage$/NS$






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






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






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






11. Convert 3 to a percent






12. A count of every item on the floor - in stock rooms - warehouse - etc. to determine whether shortages or overages are occuring






13. GMROII = GM% x (Sales / Average Value of Inventory)






14. 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






15. 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)






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






17. Net Sales for period/ Avg Stock for period






18. (Retail - Cost)/ Retail






19. cash + receivables/ current liabilities.






20. $ Cost x (100 + Mark-up %) / 100






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






22. 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)






23. 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






24. Sales - cost of goods sold






25. total fixed costs/ selling price-variable cost






26. A/b






27. accounts receivable/ average daily sales






28. Two equivalent ratios joined by an equal sign.






29. Net Sales / Average Retail Value of Inventory






30. 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%






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






32. 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






33. Beginning inventory + Purchases - Ending inventory






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






35. 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.






36. Convert 56% to a decimal






37. Convert 80% to a fraction






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






39. Convert 14% to a fraction






40. Wholesale cost






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






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






43. 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






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






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






46. A measure of the number of days needed to collect accounts receivable.






47. Accounts receivable - buildings - cash - copyrights - equiptment - furniture and fixtures - land - tomor vehicles






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






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






50. Convert .36 to a percent