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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 slaes plans are overestimated and the stock purchases result in a stockpiled inventory
Current Ratio
overbought
Discounting Formula
Liquidity of Assets
2. S=X(1+r1)^y(1+r
Compound interest formula with changing rates
.7
Adding Fractions
70%
3. Amount decrease (Original - New) / Original amount = decimal= convert to %
Liquidity of Assets
Unit pricing
percent decrease
.56
4. After 4 years - $5 -000 will grow to how much if it earns 10% interest?
$6 -655.50
stock turn
Cost
Internal Rate of Return
5. Multiply the number by 1-the decrease proportion - e.g. 16(1-0.25) = 160.75 = 12 - 12 is a 25% decrease of 16
steps in strategic planning
To decrease a number by a given percentage - e.g. decrease 16 by 25%
cost of goods
increase=debit
6. When refunds or retail price reductions are given to customers - these activities reduce the value of this (also known as initial sales). formula: GS = NS + RED; GS$ = NS$ X GS%
gross sales
.7
increase=credit
Gross Margin Return On Inventory Investment (GMROII)
7. A plane flies 980 miles in 1 2/3 hours. How many miles does the plane average per hour
GMROI
netprice with a 25/10/10 series discount
588 mph
gross margin
8. A form of closed-end credit used for purchasing durable goods such as cars
improper
installment loan
book value
overbought
9. Divide the result by 1+the increase proportion eg) X=16/(1+0.25) = 12.8 - 16 is a 25% increase over 12.8
profit
Of what number 16 is a 25% increase
Adding Fractions
income statement
10. The point at which you stop losing money.
installment loan
Means
overbought
Break Even Point
11. $ RETAIL X (100 - GM %) / 100
book value
$ COST
gross margin
steps in strategic planning
12. Net Sales for period/ Avg Stock for period
Inventory Turnover Rate
Unit pricing
Quick Ratio
Turnover
13. $ Cost x (100 + Mark-up %) / 100
Cost
Mark Up %
to determine equivalent single discount rate for 25/10/10 series discount
$ Retail
14. He availability of your money is called _.
types of assets
Liquidity
installment loan
Compound interest formula with changing rates
15. 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
Unit pricing
per hundred
when multiplying numbers that contain decimals:
types of expenses
16. 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)
Simple interest formula
physical inventory
Dividing Fractions
78
17. Cash or assets that can quickly be converted into cash.
41%
Break Even Point
Current Assets
588 mph
18. Receipt of goods; the cash discount period and net period begin with the date of receipt of goods; ex: 8/10 ROG - n/30
$ COST
ROG
16-18
To find the number from which a percentage has been deducted to achieve it - e.g. of what number is 16 a 25% decrease?
19. 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
Quick Ratio
Effective annual rate of interest formula
EOM (in terms of invoice)
COD
20. The difference between the retail price and the cost of goods sold; it includes operating expenses - retail reductions - and profit
Markup
With cash discounts and calculating net price - when to add freight
To find the number from which a percentage has been deducted to achieve it - e.g. of what number is 16 a 25% decrease?
netprice with a 25/10/10 series discount
21. $ Markdown/ $ Net Sales (multiply result by 100 to express as percentage)
Markdown %
Inventory Turnover Rate
DOI
The sum of a Geometric Progression
22. A/b + c/b = (a+c)/b
78
costs of goods sold
Adding Fractions
shortage
23. Total Net Sales / Total Number of Transactions
Sales per Transaction
70%
$ COST
Gross Margin Return On Inventory Investment (GMROII)
24. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods
ROG
Effective annual rate of interest formula
Markdown %
profit and loss statement
25. Convert .36 to a percent
to determine equivalent single discount rate for 25/10/10 series discount
36%
costs of goods sold
Break Even Point Formula
26. What happens when your expenses - etc. are higher than your sales
netprice with a 25/10/10 series discount
Gross margin %
loss
net sales
27. Convert 65% to a decimal
.65
gross margin
125%
increase=credit
28. Convert 14% to a fraction
4%
To increase a number by a given percentage - e.g. increase 16 by 25%
14/100
.65
29. Convert 70% to a decimal
588 mph
.7
gross sales
overbought
30. The recommended house payment should be no more than _% of your monthly take-home pay.
% increase or decrease
types of assets
25
gross sales
31. Convert .62 to a percent
2.5% per month
percent decrease
62%
$ Retail
32. A count of every item on the floor - in stock rooms - warehouse - etc. to determine whether shortages or overages are occuring
physical inventory
stock turn
% increase or decrease
Current Ratio
33. 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
OTB (retail)
Internal Rate of Return
Discounting Formula
gross sales
34. Gross margin dollars/Net sales dollars (multiply by 100 to express as percentage) or (Selling price - cost) x 100 / Selling price
Gross margin %
Dividing Fractions
Internal Rate of Return
profit and loss statement
35. $ Cost/ (100%-markup%)
book value
Liquidity
$ Retail
$ Markdown
36. Alignment of the decimals is not important
when multiplying numbers that contain decimals:
36%
62%
netprice with a 25/10/10 series discount
37. Wholesale cost
installment loan
25%
cost of goods
Retail
38. When sales plans are underestimated and the stock purchases result in a low inventory
underbought
ROG
stock turn
25%
39. A/b - c/b = a-c/b
36%
To increase a number by a given percentage - e.g. increase 16 by 25%
$ COST
Subtracting Fractions
40. Gross Margin/ Average Inventory Cost
GMROI
increase=debit
$ Retail
gross margin
41. Another name for the P & L statement mainly used by managers planning sales or accountants formulating analyses
income statement
Average Daily Sales
underbought
36%
42. Turning assets into cash.
Liquidity of Assets
Markdown %
.56
physical inventory
43. The wholesale cost of an item (cost of goods - or COG)
Cost
125%
transportation
COD
44. 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
50/100
COD
3%
Markdown %
45. 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?
15
$252
stock turn
improper
46. Convert 3 to a percent
Effective annual rate of interest formula
types of capital
15
3%
47. Convert 56% to a decimal
3%
income statement
78
.56
48. A measure of the number of days needed to collect accounts receivable.
125%
improper
per hundred
Average Collection Turnover
49. Net Sales / Average Retail Value of Inventory
ROG
costs of goods sold
Inventory Turnover Rate
stock turn
50. Overage$ = book$ - physical count$; overage% = overage$/NS$
overages
$2 -127.66
.7
Retail