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

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

**3. Convert .4 to a percent**

**4. Rose borrowed money to buy a ring priced at $420. When she repaid the loan at the end of 3 months - the interest charge was $31.50. What was the rate of interest?**

**5. total fixed costs/ selling price-variable cost**

**6. 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**

**7. Commissions - fees for service - merchandise sales - rental income - royalties**

**8. Beginning inventory + Purchases - Ending inventory**

**9. Convert 56% to a decimal**

**10. Liabilities - capital - income**

**11. BOM $ Stock/ Sales for period**

**12. The average person will have _ jobs in their lifetime.**

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

**14. 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**

**15. Sales - cost of goods sold**

**16. accounts receivable/ average daily sales**

**17. Another name for the P & L statement mainly used by managers planning sales or accountants formulating analyses**

**18. Convert 65% to a decimal**

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

**20. Planned Sales + Planned Markdowns + Planned EOM - Planned BOM**

**21. $ Markdown/ $ Net Sales (multiply result by 100 to express as percentage)**

**22. 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%**

**23. Convert 41/100 to a percent**

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

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

**26. Convert 14% to a fraction**

**27. The wholesale cost of goods plus the markup**

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

**29. 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)**

**30. cost of an item expressed per unit of measure or count.**

**31. Cash or assets that can quickly be converted into cash.**

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

**33. $ Cost/ (100%-markup%)**

**34. Turning assets into cash.**

**35. 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**

**36. (TY-LY)/ LY or (Plan-Actual)/**

**37. $ RETAIL X (100 - GM %) / 100**

**38. Convert .36 to a percent**

**39. A/b - c/b = a-c/b**

**40. Net Sales for period/ Avg Stock for period**

**41. (Retail - Cost)/ Retail**

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

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

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

**45. Receipt of goods; the cash discount period and net period begin with the date of receipt of goods; ex: 8/10 ROG - n/30**

**46. Outside numbers in a ratio.**

**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?**

**48. 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**

**49. Units Sold/ (Units Sold + On Hand Inventory)**

**50. An electronics store is having a 40 percent off sale. Robert has been saving to purchase a stereo system that was originally priced at $420. If Robert purchases the system during the sale - what will be the cost?**