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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. You should never take out more than a _ year mortgage.
Internal Rate of Return
15
steps in strategic planning
FOB destination
2. A/b - c/b = a-c/b
Sell Thru %
profit
Subtracting Fractions
EOM (in terms of invoice)
3. Original retail price - Lower retail price
Extremes
OTB (retail)
steps in strategic planning
$ Markdown
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.
net sales
types of liabilities
netprice with a 25/10/10 series discount
steps in strategic planning
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)
Discounting Formula
$252
Simple interest formula
operating expenses
6. accounts receivable/ average daily sales
Extremes
Average Collection Turnover
$ Markdown
25%
7. When sales plans are underestimated and the stock purchases result in a low inventory
stock turn
78
underbought
types of expenses
8. Loss of items due to damaged goods - stealing - etc.
Cost
To decrease a number by a given percentage - e.g. decrease 16 by 25%
shrinkage
per hundred
9. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods
Of what number 16 is a 25% increase
costs of goods sold
Means
Effective annual rate of interest formula
10. Amount decrease (Original - New) / Original amount = decimal= convert to %
percent decrease
Unit pricing
Gross margin dollars
20%
11. Inside numbers in a ratio.
Means
$252
$ Cost
60
12. S=X(1+r1)^y(1+r
To find the number from which a percentage has been deducted to achieve it - e.g. of what number is 16 a 25% decrease?
Compound interest formula with changing rates
78
increase=credit
13. total annual sales/365
increase=debit
Sell Thru %
Average Daily Sales
per hundred
14. Convert 80% to a fraction
Liquidity of Assets
types of liabilities
80/100
profit
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
Break Even Point
50/100
The sum of a Geometric Progression
$ Markdown
16. What does percent mean?
Cost
.7
4%
per hundred
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
ROG
profit and loss statement
With cash discounts and calculating net price - when to add freight
$ Markdown
18. Alignment of the decimals is not important
when multiplying numbers that contain decimals:
Current Assets
14/100
To increase a number by a given percentage - e.g. increase 16 by 25%
19. A/b
Unit pricing
Break Even Point Formula
$6 -655.50
Dividing Fractions
20. The wholesale cost of goods plus the markup
Simple interest formula
14/100
DOI
Retail
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)
Means
$ Cost
25%
Internal Rate of Return
22. Net Sales for period/ Avg Stock for period
Turnover
4%
When Dividing With Exponents
$ Cost
23. When slaes plans are overestimated and the stock purchases result in a stockpiled inventory
income statement
overbought
gross sales
DOI
24. The point at which you stop losing money.
Break Even Point
Sales per Transaction
Mark Up %
per hundred
25. A form of closed-end credit used for purchasing durable goods such as cars
25
Effective annual rate of interest formula
25%
installment loan
26. Convert 1/4 to a percent
With cash discounts and calculating net price - when to add freight
Effective annual rate of interest formula
25%
Inventory Turnover Rate
27. The average person will have _ jobs in their lifetime.
gross margin
Effective annual rate of interest formula
16-18
Average Daily Sales
28. GMROII = GM% x (Sales / Average Value of Inventory)
41%
netprice with a 25/10/10 series discount
Gross Margin Return On Inventory Investment (GMROII)
.65
29. Convert .4 to a percent
4%
Gross margin %
operating expenses
when multiplying numbers that contain decimals:
30. Net Sales / Average Retail Value of Inventory
Break Even Point
Inventory Turnover Rate
types of assets
Gross Margin Return On Inventory Investment (GMROII)
31. Wholesale cost
588 mph
cost of goods
EOM (in terms of invoice)
50/100
32. The difference between the retail price and the cost of goods sold; it includes operating expenses - retail reductions - and profit
Markup
improper
25%
3%
33. total fixed costs/ selling price-variable cost
Proportion
Break Even Point Formula
steps in strategic planning
Gross Margin Return On Inventory Investment (GMROII)
34. After all discounts have been applied to find net amount due. $100 -25% less trade discount -4% cash discount # + $20 freight!
Break Even Point Formula
FOB destination
With cash discounts and calculating net price - when to add freight
90.9%
35. Convert .62 to a percent
25%
Liquidity
62%
Break Even Point
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
Gross margin dollars
DOI
$ Cost
Discounting Formula
37. Accounts payable - bonds - notes payable (bank loans) - provisions for pensions
types of liabilities
Average Daily Sales
Adding Fractions
OTB (retail)
38. Convert 10/11 to a percent
gross margin
90.9%
$ Cost
cost of goods
39. What happens when your sales are higher than your expenses - etc.
378 63
profit
70%
book value
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
Subtracting Fractions
Retail
To find the number from which a percentage has been deducted to achieve it - e.g. of what number is 16 a 25% decrease?
gross sales
41. Total Net Sales / Total Number of Transactions
2.5% per month
Subtracting Fractions
Sales per Transaction
125%
42. Another way of counting part of a whole?
14/100
percent
Means
Dividing Fractions
43. The average car will lose _% of its value in the first 4 years.
increase=credit
60
Dividing Fractions
Discounting Formula
44. Date of invoice - the cash discount terms will have no dating within the discount statement; ex: 4/10 - n/30
DOI
cost of goods
Extremes
OTB (retail)
45. Gross Margin/ Average Inventory Cost
types of assets
GMROI
378 63
14/100
46. Accounts receivable - buildings - cash - copyrights - equiptment - furniture and fixtures - land - tomor vehicles
costs of goods sold
Inventory Turnover Rate
types of assets
.65
47. The wholesale cost of an item (cost of goods - or COG)
Cost
Stock to Sales Ratio
Liquidity
62%
48. $ Cost/ (100%-markup%)
$ Retail
Markup
Turnover
Stock to Sales Ratio
49. cash + receivables/ current liabilities.
Quick Ratio
$2 -127.66
Sales per Transaction
book value
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
cost of goods
OTB (retail)
to determine equivalent single discount rate for 25/10/10 series discount
To increase a number by a given percentage - e.g. increase 16 by 25%