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DSST Business Math

  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. Multiply the number by 1+the increase proportion - e.g. 16(1+0.25) = 161.25 = 20 - 20 is a 25% increase over 16

2. Two equivalent ratios joined by an equal sign.

3. Cash or assets that can quickly be converted into cash.

4. Original retail price - Lower retail price

5. Net Sales for period/ Avg Stock for period

6. 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

7. (Retail - Cost)/ Retail

8. Convert .62 to a percent

9. % of 90 days same as cash convert to payments.

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

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

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

13. Convert 10/11 to a percent

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

15. cost of an item expressed per unit of measure or count.

16. 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

17. Convert 41/100 to a percent

18. current assets/ current liabilities

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

20. Outside numbers in a ratio.

21. A^m/a^n = a^(m-n)

22. 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%

23. BOM $ Stock/ Sales for period

24. 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

25. Convert .36 to a percent

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

27. Inside numbers in a ratio.

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

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

30. $ RETAIL X (100 - GM %) / 100

31. 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?

32. 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

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

34. Convert 14% to a fraction

35. (TY-LY)/ LY or (Plan-Actual)/

36. The wholesale cost of goods plus the markup

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

38. Shortage$ = book$ - physical count$; shortage% = shortage$/NS$

39. A fraction in which the denominator is equal to or less than the numerator is a(an) ______________ fraction.

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

41. A/b

42. total annual sales/365

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

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

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

46. Convert 70/100 to a percent

47. Convert 50% to a fraction

48. $ retail x (100%-markup)

49. Actual retail sales; the retail price at which one tiem is sold is combined with the retail prices of all the items that are sold to become the net sales amount.

50. After all discounts have been applied to find net amount due. $100 -25% less trade discount -4% cash discount # + $20 freight!