## 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. What is the product of 3.26 and 0.4?**

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

**3. Inside numbers in a ratio.**

**4. A measure of the number of days needed to collect accounts receivable.**

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

**6. If freight is to be paid by the seller - the shipping terms are...**

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

**8. Turning assets into cash.**

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

**10. 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**

**11. Convert 1/4 to a percent**

**12. 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**

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

**14. 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**

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

**16. % of 90 days same as cash convert to payments.**

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

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

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

**20. 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.**

**21. total annual sales/365**

**22. A^m/a^n = a^(m-n)**

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

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

**25. Receipt of goods; the cash discount period and net period begin with the date of receipt of goods; ex: 8/10 ROG - n/30**

**26. 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)**

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

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

**29. 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?**

**30. $ Cost/ (100%-markup%)**

**31. Beginning inventory + Purchases - Ending inventory**

**32. Outside numbers in a ratio.**

**33. Convert .4 to a percent**

**34. The average person will have _ jobs in their lifetime.**

**35. Convert 10/11 to a percent**

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

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

**38. 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%**

**39. A/b**

**40. Start with list price - List price: $6400 x 25% - x 10% - x10% % - Taken one after another(subtract)**

**41. Cash or assets that can quickly be converted into cash.**

**42. Two equivalent ratios joined by an equal sign.**

**43. To take advantage of the 6% cash discount - a retailer made a $2 -000 partial payment during the discount period. How much was the retailer credited for the $2 -000 partial payment?**

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

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

**46. (TY-LY)/ LY or (Plan-Actual)/**

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

**48. Planned Sales + Planned Markdowns + Planned EOM - Planned BOM**

**49. The recommended house payment should be no more than _% of your monthly take-home pay.**

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