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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. The value of the inventory as kept in the handwritten ledgers or computer system; formula: book$ = merchandise available$ - NS$ - (MD$ + ED$)
Current Ratio
Liquidity of Assets
physical inventory
book value
2. Accounts payable - bonds - notes payable (bank loans) - provisions for pensions
types of liabilities
Means
operating expenses
per hundred
3. Date of invoice - the cash discount terms will have no dating within the discount statement; ex: 4/10 - n/30
Gross margin %
15
$6 -655.50
DOI
4. Convert 41/100 to a percent
1.304
net sales
41%
stock turn
5. BOM $ Stock/ Sales for period
EOM (in terms of invoice)
Stock to Sales Ratio
Mark Up %
stock turn
6. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods
Effective annual rate of interest formula
cost of goods
per hundred
Liquidity of Assets
7. Start with list price - List price: $6400 x 25% - x 10% - x10% % - Taken one after another(subtract)
netprice with a 25/10/10 series discount
Proportion
Means
per hundred
8. 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%
to determine equivalent single discount rate for 25/10/10 series discount
steps in strategic planning
Means
transportation
9. 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.
Proportion
$2 -127.66
net sales
.65
10. total annual sales/365
60
Sell Thru %
Average Daily Sales
Multiplying Fractions
11. $ Cost x (100 + Mark-up %) / 100
overbought
$ Retail
Multiplying Fractions
per hundred
12. current assets/ current liabilities
gross margin
14/100
Current Ratio
cost of goods sold formula (COGS)
13. Multiply the number by 1-the decrease proportion - e.g. 16(1-0.25) = 160.75 = 12 - 12 is a 25% decrease of 16
To decrease a number by a given percentage - e.g. decrease 16 by 25%
percent
overages
Break Even Point Formula
14. The point at which you stop losing money.
Break Even Point
The sum of a Geometric Progression
profit and loss statement
Extremes
15. A fraction in which the denominator is equal to or less than the numerator is a(an) ______________ fraction.
$ Retail
Simple interest formula
improper
Break Even Point
16. After all discounts have been applied to find net amount due. $100 -25% less trade discount -4% cash discount # + $20 freight!
25%
profit and loss statement
Sell Thru %
With cash discounts and calculating net price - when to add freight
17. A/b + c/b = (a+c)/b
GMROI
improper
Internal Rate of Return
Adding Fractions
18. 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 -127.66
Break Even Point
To increase a number by a given percentage - e.g. increase 16 by 25%
25
19. Convert 1.25 to a percent
Discounting Formula
Gross margin dollars
physical inventory
125%
20. total fixed costs/ selling price-variable cost
Break Even Point Formula
Dividing Fractions
loss
Quick Ratio
21. 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
types of liabilities
transportation
Liquidity of Assets
50/100
22. Convert 14% to a fraction
14/100
Sales per Transaction
net sales
income statement
23. The wholesale cost of an item (cost of goods - or COG)
cost of goods
$ Markdown
3%
Cost
24. What does percent mean?
per hundred
When Dividing With Exponents
increase=debit
% increase or decrease
25. Commissions - fees for service - merchandise sales - rental income - royalties
Adding Fractions
16-18
gross margin
types of incomes
26. cash + receivables/ current liabilities.
profit and loss statement
Quick Ratio
80/100
FOB destination
27. 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)
Internal Rate of Return
profit and loss statement
Average Daily Sales
increase=credit
28. Gross margin dollars/Net sales dollars (multiply by 100 to express as percentage) or (Selling price - cost) x 100 / Selling price
Gross margin %
41%
When Dividing With Exponents
Cost
29. The difference between the retail price and the cost of goods sold; it includes operating expenses - retail reductions - and profit
Markup
Average Daily Sales
gross sales
$ Cost
30. Inside numbers in a ratio.
Break Even Point
types of incomes
stock turn
Means
31. A value or an expression of how fast merchandise moves through the store; also called turn. formula: turn - NS$ / Average Stock$ (average stock$ = BOM$ + EOM$)/(#BOM + 1)
increase=credit
Break Even Point
stock turn
4%
32. Liabilities - capital - income
$ Retail
increase=credit
60
Gross margin %
33. $ RETAIL X (100 - GM %) / 100
$ COST
Quick Ratio
.65
90.9%
34. Outside numbers in a ratio.
Extremes
Current Assets
income statement
Discounting Formula
35. Convert .4 to a percent
$ Retail
Mark Up %
Markup
4%
36. 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?
Gross Margin Return On Inventory Investment (GMROII)
$252
Simple interest formula
With cash discounts and calculating net price - when to add freight
37. Net Sales / Average Retail Value of Inventory
Current Assets
Sell Thru %
Markdown %
Inventory Turnover Rate
38. 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
Stock to Sales Ratio
EOM (in terms of invoice)
Current Assets
profit and loss statement
39. Convert 3 to a percent
.56
types of capital
3%
Average Collection Turnover
40. Units Sold/ (Units Sold + On Hand Inventory)
$ Markdown
Margin %
125%
Sell Thru %
41. Divide the result by 1+the increase proportion eg) X=16/(1+0.25) = 12.8 - 16 is a 25% increase over 12.8
steps in strategic planning
.7
Of what number 16 is a 25% increase
Turnover
42. A team won 16 games and lost 9 games. What percent of games did the team lose?
loss
$6 -655.50
improper
36%
43. Convert 56% to a decimal
FOB destination
When Dividing With Exponents
.56
25
44. Convert 10/11 to a percent
The sum of a Geometric Progression
90.9%
transportation
$ Retail
45. When sales plans are underestimated and the stock purchases result in a low inventory
underbought
increase=debit
.7
Retail
46. A^m/a^n = a^(m-n)
overbought
physical inventory
When Dividing With Exponents
$ Markdown
47. Direct labor - factory overhead - merchandise inventory - packaging - raw material
gross sales
types of expenses
36%
costs of goods sold
48. Net Sales for period/ Avg Stock for period
Turnover
Quick Ratio
Adding Fractions
Average Collection Turnover
49. 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...
operating expenses
3%
Compound interest formula with changing rates
The sum of a Geometric Progression
50. You should never take out more than a _ year mortgage.
15
overages
profit
Break Even Point