## 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. Turning assets into cash.**

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

**3. 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**

**4. 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**

**5. Total Net Sales / Total Number of Transactions**

**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%**

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

**8. Inside numbers in a ratio.**

**9. Convert 80% to a fraction**

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

**11. Convert .36 to a percent**

**12. S=X(1+r1)^y(1+r**

**13. 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**

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

**15. Overage$ = book$ - physical count$; overage% = overage$/NS$**

**16. Capital stock - owner's equity (owner's funds invested in the business)**

**17. Convert 10/11 to a percent**

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

**19. Gross Margin/ Average Inventory Cost**

**20. Convert 1.25 to a percent**

**21. 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)**

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

**23. Convert 50% to a fraction**

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

**25. Accounts payable - bonds - notes payable (bank loans) - provisions for pensions**

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

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

**28. A^m/a^n = a^(m-n)**

**29. 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?**

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

**31. What does percent mean?**

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

**33. The difference between the retail price and the cost of goods sold; it includes operating expenses - retail reductions - and profit**

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

**35. Outside numbers in a ratio.**

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

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

**38. Two equivalent ratios joined by an equal sign.**

**39. 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)**

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

**41. Accounts receivable - buildings - cash - copyrights - equiptment - furniture and fixtures - land - tomor vehicles**

**42. total annual sales/365**

**43. When slaes plans are overestimated and the stock purchases result in a stockpiled inventory**

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

**45. $ retail x (100%-markup)**

**46. Alignment of the decimals is not important**

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

**48. You should never take out more than a _ year mortgage.**

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

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