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






2. A/b - c/b = a-c/b






3. Original retail price - Lower retail price






4. 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.






5. 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)






6. accounts receivable/ average daily sales






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






8. Loss of items due to damaged goods - stealing - etc.






9. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods






10. Amount decrease (Original - New) / Original amount = decimal= convert to %






11. Inside numbers in a ratio.






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






13. total annual sales/365






14. Convert 80% to a fraction






15. 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






16. What does percent mean?






17. A formal document that is used for a variety of functions within a retail business; it provides a big picture look at the succinct expression of the sales - markup - and profit for a business






18. Alignment of the decimals is not important






19. A/b






20. The wholesale cost of goods plus the markup






21. 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)






22. Net Sales for period/ Avg Stock for period






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






24. The point at which you stop losing money.






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






26. Convert 1/4 to a percent






27. The average person will have _ jobs in their lifetime.






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






29. Convert .4 to a percent






30. Net Sales / Average Retail Value of Inventory






31. Wholesale cost






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






33. total fixed costs/ selling price-variable cost






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






35. Convert .62 to a percent






36. 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






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






38. Convert 10/11 to a percent






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






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






41. Total Net Sales / Total Number of Transactions






42. Another way of counting part of a whole?






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






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






45. Gross Margin/ Average Inventory Cost






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






47. The wholesale cost of an item (cost of goods - or COG)






48. $ Cost/ (100%-markup%)






49. cash + receivables/ current liabilities.






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