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






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






3. ($ Retail x 100 / COST) - 100






4. 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






5. Beginning inventory + Purchases - Ending inventory






6. Formula: GM = NS - COG; GM$ = NS$ X GM%






7. cost of an item expressed per unit of measure or count.






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






9. Liabilities - capital - income






10. 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)






11. Outside numbers in a ratio.






12. Original retail price - Lower retail price






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






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






15. He availability of your money is called _.






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






17. Convert .62 to a percent






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






19. Convert 20 to a percent






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






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






22. 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






23. The point at which you stop losing money.






24. 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






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






26. Shortage$ = book$ - physical count$; shortage% = shortage$/NS$






27. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods






28. What does percent mean?






29. $ retail x (100%-markup)






30. Convert 1.25 to a percent






31. Commissions - fees for service - merchandise sales - rental income - royalties






32. A^m/a^n = a^(m-n)






33. Net Sales / Average Retail Value of Inventory






34. Convert 3 to a percent






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






36. Wholesale cost






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






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






39. 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?






40. Convert 10/11 to a percent






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






42. A plane flies 980 miles in 1 2/3 hours. How many miles does the plane average per hour






43. Gross Margin/ Average Inventory Cost






44. Two equivalent ratios joined by an equal sign.






45. A/b + c/b = (a+c)/b






46. 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)






47. The sum of the cost of doing business - except the cost of goods; they include such items as sales persons' salaries - bags - paper and pencils - and cleaning of carpets...






48. Another way of counting part of a whole?






49. Convert .36 to a percent






50. BOM $ Stock/ Sales for period