Test your basic knowledge |

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






2. Sales - cost of goods sold






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






4. Amount decrease (Original - New) / Original amount = decimal= convert to %






5. (Retail - Cost)/ Retail






6. Outside numbers in a ratio.






7. 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)






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






9. The recommended house payment should be no more than _% of your monthly take-home pay.






10. Convert 56% to a decimal






11. Divide the result by 1-the decrease proportion - eg) X=16/(1-0.25)=21.33 - 16 is a 25% decrease of 21.33






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






13. 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






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






15. Wholesale cost






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






17. Direct labor - factory overhead - merchandise inventory - packaging - raw material






18. 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)






19. A/b






20. Assets - cost of goods sold - expenses






21. 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






22. What happens when your sales are higher than your expenses - etc.






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






24. Original retail price - Lower retail price






25. Convert 70% to a decimal






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






27. cash + receivables/ current liabilities.






28. 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%






29. A form of closed-end credit used for purchasing durable goods such as cars






30. The wholesale cost of an item (cost of goods - or COG)






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






32. Convert .4 to a percent






33. What does percent mean?






34. Inside numbers in a ratio.






35. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods






36. BOM $ Stock/ Sales for period






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






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






39. A/b






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






41. Beginning inventory + Purchases - Ending inventory






42. Multiply the number by 1+the increase proportion - e.g. 16(1+0.25) = 161.25 = 20 - 20 is a 25% increase over 16






43. Convert 50% to a fraction






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






45. The average car payment is $_ per month for _ months.






46. Another way of counting part of a whole?






47. A team won 16 games and lost 9 games. What percent of games did the team lose?






48. % of 90 days same as cash convert to payments.






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






50. Alignment of the decimals is not important