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

**2. GMROII = GM% x (Sales / Average Value of Inventory)**

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

**4. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods**

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

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

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

**8. The point at which you stop losing money.**

**9. Multiply the number by 1-the decrease proportion - e.g. 16(1-0.25) = 160.75 = 12 - 12 is a 25% decrease of 16**

**10. What is the product of 3.26 and 0.4?**

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

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

**13. 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...**

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

**15. Turning assets into cash.**

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

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

**18. 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**

**19. Multiply the number by 1+the increase proportion - e.g. 16(1+0.25) = 161.25 = 20 - 20 is a 25% increase over 16**

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

**21. Convert 1.25 to a percent**

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

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

**24. 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%**

**25. Net Sales / Average Retail Value of Inventory**

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

**27. Convert 20 to a percent**

**28. Convert .62 to a percent**

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

**30. 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**

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

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

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

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

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

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

**37. The wholesale cost of an item (cost of goods - or COG)**

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

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

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

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

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

**43. cash + receivables/ current liabilities.**

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

**45. 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**

**46. $ Cost x (100 + Mark-up %) / 100**

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

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

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

**50. total annual sales/365**