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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
78
loss
EOM (in terms of invoice)
2. 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$)/(#BOM + 1)
Stock to Sales Ratio
net sales
.7
stock turn
3. Convert 10/11 to a percent
gross margin
when multiplying numbers that contain decimals:
Margin %
90.9%
4. Convert 80% to a fraction
installment loan
Mark Up %
80/100
Effective annual rate of interest formula
5. Net Sales for period/ Avg Stock for period
25%
Turnover
% increase or decrease
percent decrease
6. Use compliments - Step 1 Find compliments 25% = 100-25%= 75% - 10%= 90% - 10%=90% Step 2 Multiple Compliments 75%x90%x90% .75x.90x.90= .6075 Step 3 Convert to Percentage .6075= 60.75% Step 4 Compliment it 100%-60.75%= 39.35%
To decrease a number by a given percentage - e.g. decrease 16 by 25%
to determine equivalent single discount rate for 25/10/10 series discount
OTB (retail)
EOM (in terms of invoice)
7. Formula: GM = NS - COG; GM$ = NS$ X GM%
Dividing Fractions
Current Ratio
15
gross margin
8. A/b - c/b = a-c/b
book value
3%
cost of goods
Subtracting Fractions
9. 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
2.5% per month
.65
steps in strategic planning
increase=debit
10. Receipt of goods; the cash discount period and net period begin with the date of receipt of goods; ex: 8/10 ROG - n/30
percent
Quick Ratio
costs of goods sold
ROG
11. Convert 1.25 to a percent
Current Assets
125%
shrinkage
COD
12. 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.
50/100
Break Even Point Formula
net sales
Markdown %
13. If freight is to be paid by the seller - the shipping terms are...
FOB destination
loss
$ Markdown
Gross Margin Return On Inventory Investment (GMROII)
14. BOM $ Stock/ Sales for period
Liquidity
Gross Margin Return On Inventory Investment (GMROII)
80/100
Stock to Sales Ratio
15. 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...
36%
operating expenses
loss
20%
16. Accounts payable - bonds - notes payable (bank loans) - provisions for pensions
EOM (in terms of invoice)
types of liabilities
36%
cost of goods
17. Beginning inventory + Purchases - Ending inventory
4%
16-18
cost of goods sold formula (COGS)
shrinkage
18. current assets/ current liabilities
15
Current Ratio
1.304
overbought
19. A count of every item on the floor - in stock rooms - warehouse - etc. to determine whether shortages or overages are occuring
physical inventory
COD
Extremes
increase=debit
20. $ Cost x (100 + Mark-up %) / 100
Multiplying Fractions
$ Retail
Unit pricing
increase=credit
21. After all discounts have been applied to find net amount due. $100 -25% less trade discount -4% cash discount # + $20 freight!
Stock to Sales Ratio
types of incomes
With cash discounts and calculating net price - when to add freight
% increase or decrease
22. The value of the inventory as kept in the handwritten ledgers or computer system; formula: book$ = merchandise available$ - NS$ - (MD$ + ED$)
4%
types of incomes
book value
Gross margin dollars
23. You should never take out more than a _ year mortgage.
.7
70%
per hundred
15
24. Commissions - fees for service - merchandise sales - rental income - royalties
Markdown %
$ Markdown
types of incomes
types of expenses
25. Sales - cost of goods sold
Mark Up %
Gross margin dollars
transportation
25
26. Turning assets into cash.
gross margin
To increase a number by a given percentage - e.g. increase 16 by 25%
588 mph
Liquidity of Assets
27. Cash or assets that can quickly be converted into cash.
Current Assets
$ Markdown
types of capital
Proportion
28. When sales plans are underestimated and the stock purchases result in a low inventory
overages
underbought
36%
.56
29. Convert 56% to a decimal
Gross margin %
underbought
Current Assets
.56
30. Inside numbers in a ratio.
Means
per hundred
$ Retail
profit and loss statement
31. Assets - cost of goods sold - expenses
increase=debit
36%
Markdown %
Liquidity
32. Accounts receivable - buildings - cash - copyrights - equiptment - furniture and fixtures - land - tomor vehicles
book value
50/100
gross sales
types of assets
33. Convert 65% to a decimal
Internal Rate of Return
Markup
cost of goods sold formula (COGS)
.65
34. A/b
physical inventory
When Dividing With Exponents
Dividing Fractions
Current Assets
35. (Retail - Cost)/ Retail
Sales per Transaction
Margin %
COD
Break Even Point Formula
36. 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
The sum of a Geometric Progression
OTB (retail)
DOI
3%
37. 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
36%
types of expenses
overbought
20%
38. total annual sales/365
steps in strategic planning
62%
Average Daily Sales
20%
39. Outside numbers in a ratio.
Extremes
increase=debit
15
percent decrease
40. Convert .62 to a percent
The sum of a Geometric Progression
15
income statement
62%
41. Convert 20 to a percent
Sales per Transaction
steps in strategic planning
To increase a number by a given percentage - e.g. increase 16 by 25%
20%
42. What does percent mean?
Extremes
EOM (in terms of invoice)
per hundred
.65
43. Total Net Sales / Total Number of Transactions
Sales per Transaction
62%
EOM (in terms of invoice)
shortage
44. A form of closed-end credit used for purchasing durable goods such as cars
physical inventory
installment loan
to determine equivalent single discount rate for 25/10/10 series discount
125%
45. Convert 70% to a decimal
Discounting Formula
36%
income statement
.7
46. The wholesale cost of goods plus the markup
Retail
Proportion
percent
Sales per Transaction
47. 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
90.9%
installment loan
20%
Discounting Formula
48. Convert 70/100 to a percent
underbought
70%
Markup
15
49. The point at which you stop losing money.
profit and loss statement
gross sales
Break Even Point
transportation
50. Direct labor - factory overhead - merchandise inventory - packaging - raw material
costs of goods sold
$252
increase=debit
90.9%