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

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

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

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

**6. ($ Retail x 100 / COST) - 100**

**7. Convert .4 to a percent**

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

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

**10. 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.**

**11. After 4 years - $5 -000 will grow to how much if it earns 10% interest?**

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

**13. total annual sales/365**

**14. 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**

**15. A/b**

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

**17. A/b + c/b = (a+c)/b**

**18. current assets/ current liabilities**

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

**20. 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...**

**21. Convert 1.25 to a percent**

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

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

**24. (Retail - Cost)/ Retail**

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

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

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

**28. Direct labor - factory overhead - merchandise inventory - packaging - raw material**

**29. 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?**

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

**31. Convert 20 to a percent**

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

**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. A team won 16 games and lost 9 games. What percent of games did the team lose?**

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

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

**37. 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%**

**38. 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)**

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

**40. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods**

**41. Loss of items due to damaged goods - stealing - etc.**

**42. What does percent mean?**

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

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

**45. Assets - cost of goods sold - expenses**

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

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

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

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

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