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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. 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?
ROG
2.5% per month
Of what number 16 is a 25% increase
overbought
2. % of 90 days same as cash convert to payments.
% increase or decrease
78
Discounting Formula
Average Collection Turnover
3. A team won 16 games and lost 9 games. What percent of games did the team lose?
36%
70%
Quick Ratio
income statement
4. A count of every item on the floor  in stock rooms  warehouse  etc. to determine whether shortages or overages are occuring
$ Retail
physical inventory
.65
overbought
5. Two equivalent ratios joined by an equal sign.
Simple interest formula
Proportion
To find the number from which a percentage has been deducted to achieve it  e.g. of what number is 16 a 25% decrease?
14/100
6. Units Sold/ (Units Sold + On Hand Inventory)
Turnover
Gross margin %
Sell Thru %
The sum of a Geometric Progression
7. After all discounts have been applied to find net amount due. $100 25% less trade discount 4% cash discount # + $20 freight!
Liquidity
Quick Ratio
With cash discounts and calculating net price  when to add freight
shortage
8. Assets  cost of goods sold  expenses
36%
increase=debit
net sales
78
9. X=S*[1/(1+r)^n] Where: S=the sum to be received after n time periods X=the present value of that sum r=the rate of return (as a proportion) n=the number of time periods  r  rate  is sometimes called cost of capital
increase=debit
Discounting Formula
To decrease a number by a given percentage  e.g. decrease 16 by 25%
Average Daily Sales
10. Cash on delivery; this dating is used when the vendor does not know the retailer or the retailer does not have a strong line of credit
COD
Adding Fractions
Means
Gross margin %
11. The cost of moving from the vendor's warehouse (loading dock) to the retail warehouse or store (loading dock)  may also include insurance to cover the merchandise while in transit
transportation
percent
Unit pricing
When Dividing With Exponents
12. Net Sales for period/ Avg Stock for period
types of expenses
operating expenses
Turnover
types of incomes
13. accounts receivable/ average daily sales
To decrease a number by a given percentage  e.g. decrease 16 by 25%
Average Collection Turnover
3%
Mark Up %
14. A formal document that is used for a variety of functions within a retail business; it provides a big picture look at the succinct expression of the sales  markup  and profit for a business
Average Collection Turnover
25
profit and loss statement
Gross Margin Return On Inventory Investment (GMROII)
15. The value of the inventory as kept in the handwritten ledgers or computer system; formula: book$ = merchandise available$  NS$  (MD$ + ED$)
$ COST
book value
15
With cash discounts and calculating net price  when to add freight
16. cash + receivables/ current liabilities.
To find the number from which a percentage has been deducted to achieve it  e.g. of what number is 16 a 25% decrease?
Quick Ratio
profit
Means
17. Convert .36 to a percent
36%
2.5% per month
percent
COD
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)
378 63
Internal Rate of Return
increase=credit
The sum of a Geometric Progression
19. Wholesale cost
36%
Margin %
cost of goods
Current Assets
20. Commissions  fees for service  merchandise sales  rental income  royalties
to determine equivalent single discount rate for 25/10/10 series discount
types of incomes
90.9%
The sum of a Geometric Progression
21. Cash or assets that can quickly be converted into cash.
To increase a number by a given percentage  e.g. increase 16 by 25%
ROG
net sales
Current Assets
22. 1. develop a vision statement for the company  2. scan the internal and external environments  3. determine issues critical to the company  4. select the problem to be solved  5. determine the specific strategy to achieve the solution  6. identi
overbought
steps in strategic planning
Current Assets
$252
23. $ Markdown/ $ Net Sales (multiply result by 100 to express as percentage)
Sell Thru %
Markdown %
.65
78
24. Convert 14% to a fraction
$252
15
FOB destination
14/100
25. (Retail  Cost)/ Retail
Margin %
25%
Liquidity of Assets
percent decrease
26. Alignment of the decimals is not important
when multiplying numbers that contain decimals:
Quick Ratio
.56
14/100
27. $ retail x (100%markup)
2.5% per month
Average Daily Sales
$ Cost
4%
28. Direct labor  factory overhead  merchandise inventory  packaging  raw material
costs of goods sold
Quick Ratio
With cash discounts and calculating net price  when to add freight
per hundred
29. Convert 10/11 to a percent
90.9%
types of assets
To find the number from which a percentage has been deducted to achieve it  e.g. of what number is 16 a 25% decrease?
588 mph
30. current assets/ current liabilities
when multiplying numbers that contain decimals:
Current Ratio
Current Assets
costs of goods sold
31. Outside numbers in a ratio.
To find the number from which a percentage has been deducted to achieve it  e.g. of what number is 16 a 25% decrease?
types of expenses
3%
Extremes
32. Convert 1/4 to a percent
588 mph
.7
25%
Effective annual rate of interest formula
33. 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
EOM (in terms of invoice)
types of expenses
gross sales
20%
34. What is the product of 3.26 and 0.4?
DOI
Multiplying Fractions
To increase a number by a given percentage  e.g. increase 16 by 25%
1.304
35. Convert 70% to a decimal
The sum of a Geometric Progression
profit and loss statement
.7
62%
36. When sales plans are underestimated and the stock purchases result in a low inventory
4%
OTB (retail)
costs of goods sold
underbought
37. Convert 56% to a decimal
installment loan
.56
physical inventory
$ Retail
38. Capital stock  owner's equity (owner's funds invested in the business)
transportation
Inventory Turnover Rate
78
types of capital
39. The difference between the retail price and the cost of goods sold; it includes operating expenses  retail reductions  and profit
20%
income statement
loss
Markup
40. Another name for the P & L statement mainly used by managers planning sales or accountants formulating analyses
income statement
cost of goods
$ Retail
When Dividing With Exponents
41. Start with list price  List price: $6400 x 25%  x 10%  x10% %  Taken one after another(subtract)
per hundred
to determine equivalent single discount rate for 25/10/10 series discount
netprice with a 25/10/10 series discount
GMROI
42. The wholesale cost of goods plus the markup
Retail
increase=credit
With cash discounts and calculating net price  when to add freight
Of what number 16 is a 25% increase
43. A/b
Multiplying Fractions
125%
Gross Margin Return On Inventory Investment (GMROII)
loss
44. 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
Effective annual rate of interest formula
EOM (in terms of invoice)
25
underbought
45. S=X(1+r1)^y(1+r
percent
Compound interest formula with changing rates
Of what number 16 is a 25% increase
loss
46. Amount decrease (Original  New) / Original amount = decimal= convert to %
Average Collection Turnover
.7
percent decrease
per hundred
47. Convert .62 to a percent
62%
Adding Fractions
increase=credit
Markup
48. Divide the result by 1+the increase proportion eg) X=16/(1+0.25) = 12.8  16 is a 25% increase over 12.8
$ Cost
underbought
When Dividing With Exponents
Of what number 16 is a 25% increase
49. Convert 80% to a fraction
80/100
Mark Up %
378 63
$ COST
50. A/b + c/b = (a+c)/b
.7
Margin %
Adding Fractions
2.5% per month