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

**2. A fraction in which the denominator is equal to or less than the numerator is a(an) ______________ fraction.**

**3. Commissions - fees for service - merchandise sales - rental income - royalties**

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

**5. Convert 70/100 to a percent**

**6. total annual sales/365**

**7. Wholesale cost**

**8. 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**

**9. Loss of items due to damaged goods - stealing - etc.**

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

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

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

**13. 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)**

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

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

**16. Original retail price - Lower retail price**

**17. Another name for the P & L statement mainly used by managers planning sales or accountants formulating analyses**

**18. Convert .36 to a percent**

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

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

**21. Convert 70% to a decimal**

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

**23. 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**

**24. When refunds or retail price reductions are given to customers - these activities reduce the value of this (also known as initial sales). formula: GS = NS + RED; GS$ = NS$ X GS%**

**25. 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**

**26. 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**

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

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

**29. Liabilities - capital - income**

**30. A form of closed-end credit used for purchasing durable goods such as cars**

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

**32. 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**

**33. Divide the result by 1+the increase proportion eg) X=16/(1+0.25) = 12.8 - 16 is a 25% increase over 12.8**

**34. Total Net Sales / Total Number of Transactions**

**35. Units Sold/ (Units Sold + On Hand Inventory)**

**36. $ retail x (100%-markup)**

**37. 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?**

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

**39. Another way of counting part of a whole?**

**40. A/b**

**41. Convert 1.25 to a percent**

**42. Convert 3 to a percent**

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

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

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

**46. 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**

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

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

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

**50. Convert .62 to a percent**