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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
Adding Fractions
Gross margin %
Liquidity
types of assets
2. Gross margin dollars/Net sales dollars (multiply by 100 to express as percentage) or (Selling price  cost) x 100 / Selling price
Gross margin dollars
Gross margin %
overbought
41%
3. accounts receivable/ average daily sales
.65
Average Collection Turnover
underbought
20%
4. Date of invoice  the cash discount terms will have no dating within the discount statement; ex: 4/10  n/30
netprice with a 25/10/10 series discount
Subtracting Fractions
78
DOI
5. After 4 years  $5 000 will grow to how much if it earns 10% interest?
$ Markdown
70%
Inventory Turnover Rate
$6 655.50
6. Loss of items due to damaged goods  stealing  etc.
.56
Margin %
$6 655.50
shrinkage
7. If freight is to be paid by the seller  the shipping terms are...
FOB destination
to determine equivalent single discount rate for 25/10/10 series discount
book value
$ Cost
8. Convert .36 to a percent
Break Even Point
Inventory Turnover Rate
Proportion
36%
9. The value of the inventory as kept in the handwritten ledgers or computer system; formula: book$ = merchandise available$  NS$  (MD$ + ED$)
FOB destination
book value
To find the number from which a percentage has been deducted to achieve it  e.g. of what number is 16 a 25% decrease?
20%
10. The point at which you stop losing money.
Sell Thru %
Compound interest formula with changing rates
Break Even Point
14/100
11. A/b
With cash discounts and calculating net price  when to add freight
profit
Multiplying Fractions
To decrease a number by a given percentage  e.g. decrease 16 by 25%
12. 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?
To decrease a number by a given percentage  e.g. decrease 16 by 25%
2.5% per month
78
net sales
13. Accounts payable  bonds  notes payable (bank loans)  provisions for pensions
.56
types of liabilities
transportation
steps in strategic planning
14. Liabilities  capital  income
gross sales
Proportion
increase=credit
profit and loss statement
15. cash + receivables/ current liabilities.
Discounting Formula
Quick Ratio
$6 655.50
50/100
16. Convert 1.25 to a percent
The sum of a Geometric Progression
transportation
Current Assets
125%
17. 1. develop a vision statement for the company  2. scan the internal and external environments  3. determine issues critical to the company  4. select the problem to be solved  5. determine the specific strategy to achieve the solution  6. identi
steps in strategic planning
Compound interest formula with changing rates
overages
4%
18. GMROII = GM% x (Sales / Average Value of Inventory)
stock turn
Gross Margin Return On Inventory Investment (GMROII)
Average Collection Turnover
.65
19. A plane flies 980 miles in 1 2/3 hours. How many miles does the plane average per hour
50/100
Mark Up %
588 mph
Turnover
20. (TYLY)/ LY or (PlanActual)/
Mark Up %
Dividing Fractions
% increase or decrease
90.9%
21. Use compliments  Step 1 Find compliments 25% = 10025%= 75%  10%= 90%  10%=90% Step 2 Multiple Compliments 75%x90%x90% .75x.90x.90= .6075 Step 3 Convert to Percentage .6075= 60.75% Step 4 Compliment it 100%60.75%= 39.35%
Multiplying Fractions
to determine equivalent single discount rate for 25/10/10 series discount
improper
Gross margin dollars
22. Shortage$ = book$  physical count$; shortage% = shortage$/NS$
Dividing Fractions
increase=debit
shortage
Average Daily Sales
23. Multiply the number by 1the decrease proportion  e.g. 16(10.25) = 160.75 = 12  12 is a 25% decrease of 16
book value
Gross margin %
Markup
To decrease a number by a given percentage  e.g. decrease 16 by 25%
24. He availability of your money is called _.
Quick Ratio
shrinkage
80/100
Liquidity
25. A count of every item on the floor  in stock rooms  warehouse  etc. to determine whether shortages or overages are occuring
$ Cost
physical inventory
profit
20%
26. Amount decrease (Original  New) / Original amount = decimal= convert to %
62%
Gross margin dollars
percent decrease
FOB destination
27. Assets  cost of goods sold  expenses
Current Assets
cost of goods sold formula (COGS)
increase=debit
Turnover
28. Alignment of the decimals is not important
when multiplying numbers that contain decimals:
$252
50/100
Stock to Sales Ratio
29. What does percent mean?
per hundred
25
60
to determine equivalent single discount rate for 25/10/10 series discount
30. 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)
operating expenses
Extremes
Simple interest formula
$ Cost
31. $ Cost x (100 + Markup %) / 100
profit and loss statement
$ Retail
Simple interest formula
Average Daily Sales
32. 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
.7
To decrease a number by a given percentage  e.g. decrease 16 by 25%
.65
The sum of a Geometric Progression
33. Capital stock  owner's equity (owner's funds invested in the business)
$ Retail
to determine equivalent single discount rate for 25/10/10 series discount
36%
types of capital
34. What happens when your expenses  etc. are higher than your sales
Inventory Turnover Rate
COD
Turnover
loss
35. 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?
Markup
overbought
$252
4%
36. Wholesale cost
Gross margin %
cost of goods
percent
OTB (retail)
37. 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?
% increase or decrease
shrinkage
$2 127.66
EOM (in terms of invoice)
38. Units Sold/ (Units Sold + On Hand Inventory)
Sell Thru %
Inventory Turnover Rate
1618
EOM (in terms of invoice)
39. Turning assets into cash.
Unit pricing
EOM (in terms of invoice)
Liquidity of Assets
Average Daily Sales
40. current assets/ current liabilities
Current Ratio
15
operating expenses
per hundred
41. 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
To decrease a number by a given percentage  e.g. decrease 16 by 25%
1618
80/100
Discounting Formula
42. Convert 1/4 to a percent
Discounting Formula
$2 127.66
Dividing Fractions
25%
43. When sales plans are underestimated and the stock purchases result in a low inventory
overages
underbought
Average Collection Turnover
Compound interest formula with changing rates
44. Original retail price  Lower retail price
gross margin
Gross margin %
$ Markdown
Simple interest formula
45. Multiply the number by 1+the increase proportion  e.g. 16(1+0.25) = 161.25 = 20  20 is a 25% increase over 16
80/100
3%
To increase a number by a given percentage  e.g. increase 16 by 25%
EOM (in terms of invoice)
46. A^m/a^n = a^(mn)
When Dividing With Exponents
Gross margin dollars
OTB (retail)
% increase or decrease
47. Start with list price  List price: $6400 x 25%  x 10%  x10% %  Taken one after another(subtract)
3%
To find the number from which a percentage has been deducted to achieve it  e.g. of what number is 16 a 25% decrease?
netprice with a 25/10/10 series discount
ROG
48. A measure of the number of days needed to collect accounts receivable.
Average Collection Turnover
steps in strategic planning
14/100
4%
49. A/b
steps in strategic planning
Stock to Sales Ratio
$ COST
Dividing Fractions
50. Beginning inventory + Purchases  Ending inventory
Liquidity
cost of goods sold formula (COGS)
Sell Thru %
125%