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

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

**3. Outside numbers in a ratio.**

**4. 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**

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

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

**7. 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...**

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

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

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

**11. Date of invoice - the cash discount terms will have no dating within the discount statement; ex: 4/10 - n/30**

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

**13. Convert 20 to a percent**

**14. Another way of counting part of a whole?**

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

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

**17. 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%**

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

**19. 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**

**20. 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**

**21. A count of every item on the floor - in stock rooms - warehouse - etc. to determine whether shortages or overages are occuring**

**22. 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?**

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

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

**25. A/b**

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

**27. current assets/ current liabilities**

**28. 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**

**29. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods**

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

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

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

**33. 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)**

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

**35. Wholesale cost**

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

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

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

**39. 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?**

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

**41. Convert 3 to a percent**

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

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

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

**45. Liabilities - capital - income**

**46. Convert 1.25 to a percent**

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

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

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

**50. % of 90 days same as cash convert to payments.**