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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. When sales plans are underestimated and the stock purchases result in a low inventory
Current Ratio
70%
profit
underbought
2. $ retail x (100%-markup)
gross margin
Cost
$ Cost
To increase a number by a given percentage - e.g. increase 16 by 25%
3. Planned Sales + Planned Markdowns + Planned EOM - Planned BOM
25%
125%
OTB (retail)
overbought
4. Loss of items due to damaged goods - stealing - etc.
When Dividing With Exponents
70%
shrinkage
Adding Fractions
5. Assets - cost of goods sold - expenses
$ Markdown
Internal Rate of Return
Means
increase=debit
6. Capital stock - owner's equity (owner's funds invested in the business)
types of capital
16-18
Adding Fractions
Internal Rate of Return
7. Overage$ = book$ - physical count$; overage% = overage$/NS$
steps in strategic planning
36%
overages
Proportion
8. A/b - c/b = a-c/b
types of capital
percent decrease
Subtracting Fractions
25%
9. The value of the inventory as kept in the handwritten ledgers or computer system; formula: book$ = merchandise available$ - NS$ - (MD$ + ED$)
20%
book value
50/100
types of capital
10. Shortage$ = book$ - physical count$; shortage% = shortage$/NS$
2.5% per month
125%
90.9%
shortage
11. Convert 3 to a percent
3%
Sales per Transaction
Current Ratio
costs of goods sold
12. A count of every item on the floor - in stock rooms - warehouse - etc. to determine whether shortages or overages are occuring
net sales
.65
80/100
physical inventory
13. GMROII = GM% x (Sales / Average Value of Inventory)
Gross Margin Return On Inventory Investment (GMROII)
588 mph
installment loan
$ Retail
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
EOM (in terms of invoice)
Break Even Point Formula
14/100
types of expenses
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)
types of incomes
$ COST
70%
Simple interest formula
16. Commissions - fees for service - merchandise sales - rental income - royalties
types of incomes
Current Assets
gross sales
20%
17. Net Sales for period/ Avg Stock for period
Turnover
installment loan
Average Collection Turnover
Liquidity
18. (Retail - Cost)/ Retail
Means
Margin %
types of liabilities
OTB (retail)
19. cash + receivables/ current liabilities.
gross margin
Gross margin dollars
Quick Ratio
Liquidity
20. $ Cost x (100 + Mark-up %) / 100
ROG
OTB (retail)
$ Retail
.65
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
To find the number from which a percentage has been deducted to achieve it - e.g. of what number is 16 a 25% decrease?
To decrease a number by a given percentage - e.g. decrease 16 by 25%
stock turn
GMROI
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)
$2 -127.66
588 mph
Internal Rate of Return
Extremes
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
Stock to Sales Ratio
steps in strategic planning
378 63
types of liabilities
24. Sales - cost of goods sold
physical inventory
Gross margin dollars
To increase a number by a given percentage - e.g. increase 16 by 25%
income statement
25. total fixed costs/ selling price-variable cost
Break Even Point
Break Even Point Formula
cost of goods sold formula (COGS)
36%
26. A/b
Effective annual rate of interest formula
$6 -655.50
Markup
Dividing Fractions
27. accounts receivable/ average daily sales
Discounting Formula
14/100
percent decrease
Average Collection Turnover
28. Two equivalent ratios joined by an equal sign.
GMROI
Proportion
to determine equivalent single discount rate for 25/10/10 series discount
588 mph
29. Net Sales / Average Retail Value of Inventory
ROG
$ COST
50/100
Inventory Turnover Rate
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%
gross sales
income statement
41%
Cost
31. Start with list price - List price: $6400 x 25% - x 10% - x10% % - Taken one after another(subtract)
Adding Fractions
62%
stock turn
netprice with a 25/10/10 series discount
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
percent decrease
operating expenses
70%
profit and loss statement
33. Beginning inventory + Purchases - Ending inventory
25
Retail
62%
cost of goods sold formula (COGS)
34. After all discounts have been applied to find net amount due. $100 -25% less trade discount -4% cash discount # + $20 freight!
cost of goods sold formula (COGS)
With cash discounts and calculating net price - when to add freight
types of incomes
Liquidity of Assets
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.
overbought
Extremes
net sales
$ Markdown
36. Convert 56% to a decimal
Means
70%
.56
costs of goods sold
37. Convert 80% to a fraction
overages
$ Retail
.65
80/100
38. The average car will lose _% of its value in the first 4 years.
60
net sales
Sales per Transaction
GMROI
39. Convert 14% to a fraction
costs of goods sold
DOI
14/100
GMROI
40. Wholesale cost
cost of goods
profit and loss statement
book value
$ Retail
41. After 4 years - $5 -000 will grow to how much if it earns 10% interest?
$6 -655.50
Gross Margin Return On Inventory Investment (GMROII)
types of expenses
.7
42. ($ Retail x 100 / COST) - 100
stock turn
DOI
$6 -655.50
Mark Up %
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
Gross Margin Return On Inventory Investment (GMROII)
COD
$ COST
.7
44. You should never take out more than a _ year mortgage.
profit and loss statement
increase=credit
When Dividing With Exponents
15
45. Accounts payable - bonds - notes payable (bank loans) - provisions for pensions
15
types of liabilities
increase=credit
transportation
46. A measure of the number of days needed to collect accounts receivable.
70%
Margin %
Multiplying Fractions
Average Collection Turnover
47. Accounts receivable - buildings - cash - copyrights - equiptment - furniture and fixtures - land - tomor vehicles
Extremes
Simple interest formula
Quick Ratio
types of assets
48. cost of an item expressed per unit of measure or count.
Unit pricing
When Dividing With Exponents
Turnover
Proportion
49. (TY-LY)/ LY or (Plan-Actual)/
Inventory Turnover Rate
$252
% increase or decrease
COD
50. Convert .36 to a percent
3%
36%
Markup
profit