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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. 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%
Simple interest formula
improper
to determine equivalent single discount rate for 25/10/10 series discount
EOM (in terms of invoice)
2. Net Sales / Average Retail Value of Inventory
Inventory Turnover Rate
2.5% per month
$252
Gross Margin Return On Inventory Investment (GMROII)
3. Commissions - fees for service - merchandise sales - rental income - royalties
types of incomes
Cost
Stock to Sales Ratio
percent
4. The difference between the retail price and the cost of goods sold; it includes operating expenses - retail reductions - and profit
gross margin
Markup
overbought
Unit pricing
5. After all discounts have been applied to find net amount due. $100 -25% less trade discount -4% cash discount # + $20 freight!
transportation
With cash discounts and calculating net price - when to add freight
36%
COD
6. Convert .62 to a percent
62%
Sell Thru %
improper
To find the number from which a percentage has been deducted to achieve it - e.g. of what number is 16 a 25% decrease?
7. 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
Liquidity of Assets
EOM (in terms of invoice)
Internal Rate of Return
Break Even Point Formula
8. cost of an item expressed per unit of measure or count.
cost of goods
EOM (in terms of invoice)
Stock to Sales Ratio
Unit pricing
9. Original retail price - Lower retail price
increase=debit
25%
Proportion
$ Markdown
10. (TY-LY)/ LY or (Plan-Actual)/
1.304
GMROI
20%
% increase or decrease
11. Convert 50% to a fraction
16-18
Average Collection Turnover
profit and loss statement
50/100
12. What happens when your expenses - etc. are higher than your sales
.56
loss
Adding Fractions
36%
13. Formula: GM = NS - COG; GM$ = NS$ X GM%
.7
36%
gross margin
increase=debit
14. A/b
25%
Markup
36%
Multiplying Fractions
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...
to determine equivalent single discount rate for 25/10/10 series discount
operating expenses
Effective annual rate of interest formula
$ COST
16. Accounts payable - bonds - notes payable (bank loans) - provisions for pensions
Average Daily Sales
types of liabilities
FOB destination
588 mph
17. Accounts receivable - buildings - cash - copyrights - equiptment - furniture and fixtures - land - tomor vehicles
Liquidity of Assets
25
Average Daily Sales
types of assets
18. The wholesale cost of an item (cost of goods - or COG)
Effective annual rate of interest formula
62%
Cost
overbought
19. Direct labor - factory overhead - merchandise inventory - packaging - raw material
Adding Fractions
Margin %
Inventory Turnover Rate
costs of goods sold
20. A/b + c/b = (a+c)/b
To find the number from which a percentage has been deducted to achieve it - e.g. of what number is 16 a 25% decrease?
types of capital
Adding Fractions
steps in strategic planning
21. Receipt of goods; the cash discount period and net period begin with the date of receipt of goods; ex: 8/10 ROG - n/30
shrinkage
90.9%
ROG
50/100
22. Convert .4 to a percent
% increase or decrease
Average Collection Turnover
4%
125%
23. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods
Effective annual rate of interest formula
Gross margin dollars
62%
125%
24. Liabilities - capital - income
$ Retail
increase=credit
Proportion
36%
25. If freight is to be paid by the seller - the shipping terms are...
25%
FOB destination
gross margin
installment loan
26. Cash or assets that can quickly be converted into cash.
Current Assets
90.9%
To decrease a number by a given percentage - e.g. decrease 16 by 25%
50/100
27. $ Markdown/ $ Net Sales (multiply result by 100 to express as percentage)
1.304
GMROI
Markdown %
Multiplying Fractions
28. Convert 10/11 to a percent
Break Even Point
Margin %
90.9%
125%
29. He availability of your money is called _.
4%
When Dividing With Exponents
Liquidity
shrinkage
30. GMROII = GM% x (Sales / Average Value of Inventory)
Extremes
types of assets
income statement
Gross Margin Return On Inventory Investment (GMROII)
31. What is the product of 3.26 and 0.4?
cost of goods sold formula (COGS)
Internal Rate of Return
1.304
Sell Thru %
32. 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?
60
$2 -127.66
Gross Margin Return On Inventory Investment (GMROII)
Average Daily Sales
33. BOM $ Stock/ Sales for period
Unit pricing
EOM (in terms of invoice)
588 mph
Stock to Sales Ratio
34. Turning assets into cash.
percent
Liquidity of Assets
Average Daily Sales
increase=credit
35. A/b
14/100
Dividing Fractions
15
$2 -127.66
36. Date of invoice - the cash discount terms will have no dating within the discount statement; ex: 4/10 - n/30
transportation
Discounting Formula
DOI
Sales per Transaction
37. Convert .36 to a percent
Liquidity
Sales per Transaction
Average Collection Turnover
36%
38. 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
Discounting Formula
36%
increase=debit
When Dividing With Exponents
39. $ RETAIL X (100 - GM %) / 100
ROG
$ COST
Extremes
profit
40. accounts receivable/ average daily sales
steps in strategic planning
types of capital
Average Collection Turnover
types of expenses
41. Alignment of the decimals is not important
Adding Fractions
25
when multiplying numbers that contain decimals:
Cost
42. 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
To decrease a number by a given percentage - e.g. decrease 16 by 25%
When Dividing With Exponents
types of expenses
Gross margin dollars
43. 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?
Discounting Formula
25%
2.5% per month
Gross margin dollars
44. A^m/a^n = a^(m-n)
physical inventory
When Dividing With Exponents
Gross Margin Return On Inventory Investment (GMROII)
Average Collection Turnover
45. 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
Of what number 16 is a 25% increase
Sell Thru %
The sum of a Geometric Progression
shortage
46. 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)
78
.7
1.304
Internal Rate of Return
47. current assets/ current liabilities
$252
Current Ratio
Average Daily Sales
FOB destination
48. 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
physical inventory
70%
transportation
COD
49. total annual sales/365
Markup
improper
Average Daily Sales
GMROI
50. Convert 80% to a fraction
Cost
Adding Fractions
80/100
60