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Test your basic knowledge 
DSST Business Math
Start Test
Study First
Subjects
:
dsst
,
math
,
businessskills
,
businessmath
,
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 reenforces your understanding as you take the test each time.
1. Accounts receivable  buildings  cash  copyrights  equiptment  furniture and fixtures  land  tomor vehicles
Cost
types of assets
book value
Extremes
2. 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%
profit and loss statement
gross sales
20%
$ Markdown
3. BOM $ Stock/ Sales for period
profit and loss statement
Break Even Point
Stock to Sales Ratio
Current Ratio
4. Convert .4 to a percent
4%
Extremes
Means
when multiplying numbers that contain decimals:
5. Assets  cost of goods sold  expenses
Margin %
profit
overbought
increase=debit
6. 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)
Extremes
Simple interest formula
Stock to Sales Ratio
underbought
7. Convert 80% to a fraction
Quick Ratio
$6 655.50
80/100
.7
8. accounts receivable/ average daily sales
FOB destination
Average Collection Turnover
$252
Liquidity of Assets
9. A value or an expression of how fast merchandise moves through the store; also called turn. formula: turn  NS$ / Average Stock$ (average stock$ = BOM$ + EOM$)/(#BOM + 1)
stock turn
1.304
Quick Ratio
378 63
10. The wholesale cost of goods plus the markup
Gross Margin Return On Inventory Investment (GMROII)
Retail
To decrease a number by a given percentage  e.g. decrease 16 by 25%
36%
11. You should never take out more than a _ year mortgage.
$ COST
15
Discounting Formula
Liquidity
12. Accounts payable  bonds  notes payable (bank loans)  provisions for pensions
Means
ROG
70%
types of liabilities
13. When sales plans are underestimated and the stock purchases result in a low inventory
$ Retail
underbought
Average Collection Turnover
90.9%
14. (TYLY)/ LY or (PlanActual)/
Turnover
62%
% increase or decrease
overbought
15. What does percent mean?
per hundred
$ Retail
profit
steps in strategic planning
16. A/b
Multiplying Fractions
transportation
$ Markdown
types of incomes
17. Convert 56% to a decimal
.56
stock turn
Liquidity
DOI
18. IRR=1 + [(NPV1/NPV1NPV2)(21)]% 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
ROG
Average Collection Turnover
The sum of a Geometric Progression
19. Date of invoice  the cash discount terms will have no dating within the discount statement; ex: 4/10  n/30
Turnover
costs of goods sold
$ Retail
DOI
20. $ Cost/ (100%markup%)
operating expenses
$ Retail
physical inventory
25
21. Total Net Sales / Total Number of Transactions
Average Collection Turnover
Sales per Transaction
$ COST
Average Daily Sales
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?
% increase or decrease
installment loan
Current Assets
2.5% per month
23. What happens when your sales are higher than your expenses  etc.
types of capital
cost of goods sold formula (COGS)
profit
Quick Ratio
24. A form of closedend credit used for purchasing durable goods such as cars
.65
installment loan
1618
Average Collection Turnover
25. $ retail x (100%markup)
Sales per Transaction
$ Cost
36%
EOM (in terms of invoice)
26. Aka  the terminal value of an investment to which equal annual amounts will be added S=[A(R^n 1)]/R1 Where: S=the terminal value A=the first term R=the common ratio n=the number of terms
per hundred
gross sales
The sum of a Geometric Progression
25
27. Use compliments  Step 1 Find compliments 25% = 10025%= 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
OTB (retail)
2.5% per month
.7
28. Direct labor  factory overhead  merchandise inventory  packaging  raw material
costs of goods sold
$ Retail
$252
gross margin
29. Gross Margin/ Average Inventory Cost
percent decrease
Stock to Sales Ratio
income statement
GMROI
30. Start with list price  List price: $6400 x 25%  x 10%  x10% %  Taken one after another(subtract)
cost of goods
netprice with a 25/10/10 series discount
.65
15
31. Net Sales / Average Retail Value of Inventory
Inventory Turnover Rate
60
$ COST
Subtracting Fractions
32. Convert 14% to a fraction
14/100
transportation
36%
4%
33. Receipt of goods; the cash discount period and net period begin with the date of receipt of goods; ex: 8/10 ROG  n/30
increase=credit
ROG
overbought
Average Collection Turnover
34. A fraction in which the denominator is equal to or less than the numerator is a(an) ______________ fraction.
increase=credit
Gross Margin Return On Inventory Investment (GMROII)
Stock to Sales Ratio
improper
35. Multiply the number by 1+the increase proportion  e.g. 16(1+0.25) = 161.25 = 20  20 is a 25% increase over 16
To increase a number by a given percentage  e.g. increase 16 by 25%
cost of goods sold formula (COGS)
To decrease a number by a given percentage  e.g. decrease 16 by 25%
ROG
36. Convert 1/4 to a percent
378 63
25%
$ COST
income statement
37. What is the product of 3.26 and 0.4?
Margin %
book value
1.304
$ COST
38. What happens when your expenses  etc. are higher than your sales
increase=credit
loss
Average Collection Turnover
1.304
39. Inside numbers in a ratio.
Means
COD
$6 655.50
Unit pricing
40. Shortage$ = book$  physical count$; shortage% = shortage$/NS$
Current Ratio
20%
ROG
shortage
41. Turning assets into cash.
378 63
Liquidity of Assets
profit
DOI
42. The point at which you stop losing money.
increase=debit
Break Even Point
125%
cost of goods
43. The wholesale cost of an item (cost of goods  or COG)
Cost
Current Ratio
$ Markdown
profit
44. Convert 1.25 to a percent
overages
125%
Liquidity
GMROI
45. After all discounts have been applied to find net amount due. $100 25% less trade discount 4% cash discount # + $20 freight!
$ Markdown
With cash discounts and calculating net price  when to add freight
Break Even Point Formula
Proportion
46. A/b  c/b = ac/b
Subtracting Fractions
overages
$252
costs of goods sold
47. cost of an item expressed per unit of measure or count.
Unit pricing
Margin %
Markdown %
Gross margin dollars
48. current assets/ current liabilities
shrinkage
Current Ratio
ROG
cost of goods
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
% increase or decrease
Effective annual rate of interest formula
14/100
50. Original retail price  Lower retail price
.65
$6 655.50
$ Markdown
To find the number from which a percentage has been deducted to achieve it  e.g. of what number is 16 a 25% decrease?