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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. S=X(1+r1)^y(1+r
Compound interest formula with changing rates
stock turn
$ COST
Effective annual rate of interest formula
2. $ Cost/ (100%markup%)
loss
Current Ratio
$ Retail
$ Markdown
3. ($ Retail x 100 / COST)  100
25
Mark Up %
installment loan
When Dividing With Exponents
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
FOB destination
improper
Simple interest formula
transportation
5. Beginning inventory + Purchases  Ending inventory
types of liabilities
cost of goods sold formula (COGS)
15
Inventory Turnover Rate
6. Formula: GM = NS  COG; GM$ = NS$ X GM%
gross margin
$252
125%
.7
7. cost of an item expressed per unit of measure or count.
Markdown %
Break Even Point
Unit pricing
per hundred
8. The difference between the retail price and the cost of goods sold; it includes operating expenses  retail reductions  and profit
operating expenses
gross margin
36%
Markup
9. Liabilities  capital  income
.7
EOM (in terms of invoice)
increase=credit
gross sales
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)
$6 655.50
Simple interest formula
4%
Means
11. Outside numbers in a ratio.
Average Daily Sales
125%
Gross margin dollars
Extremes
12. Original retail price  Lower retail price
$ Markdown
25
types of capital
41%
13. A/b  c/b = ac/b
Cost
Subtracting Fractions
types of expenses
physical inventory
14. When slaes plans are overestimated and the stock purchases result in a stockpiled inventory
overbought
2.5% per month
62%
90.9%
15. He availability of your money is called _.
Liquidity
25
types of capital
netprice with a 25/10/10 series discount
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
ROG
$ Retail
overbought
Average Daily Sales
17. Convert .62 to a percent
Sell Thru %
62%
$ COST
Multiplying Fractions
18. What happens when your expenses  etc. are higher than your sales
When Dividing With Exponents
loss
cost of goods
The sum of a Geometric Progression
19. Convert 20 to a percent
20%
cost of goods
Margin %
Gross Margin Return On Inventory Investment (GMROII)
20. The wholesale cost of an item (cost of goods  or COG)
operating expenses
Cost
improper
25
21. Gross margin dollars/Net sales dollars (multiply by 100 to express as percentage) or (Selling price  cost) x 100 / Selling price
2.5% per month
Gross margin %
per hundred
% increase or decrease
22. 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
The sum of a Geometric Progression
Compound interest formula with changing rates
types of incomes
physical inventory
23. The point at which you stop losing money.
Break Even Point
Sell Thru %
To increase a number by a given percentage  e.g. increase 16 by 25%
To find the number from which a percentage has been deducted to achieve it  e.g. of what number is 16 a 25% decrease?
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
income statement
Discounting Formula
netprice with a 25/10/10 series discount
Unit pricing
25. Multiply the number by 1the decrease proportion  e.g. 16(10.25) = 160.75 = 12  12 is a 25% decrease of 16
Of what number 16 is a 25% increase
To decrease a number by a given percentage  e.g. decrease 16 by 25%
Extremes
.56
26. Shortage$ = book$  physical count$; shortage% = shortage$/NS$
Dividing Fractions
shortage
Sell Thru %
transportation
27. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods
Effective annual rate of interest formula
Sell Thru %
costs of goods sold
netprice with a 25/10/10 series discount
28. What does percent mean?
income statement
per hundred
profit and loss statement
Multiplying Fractions
29. $ retail x (100%markup)
$ Cost
Mark Up %
Effective annual rate of interest formula
Discounting Formula
30. Convert 1.25 to a percent
Internal Rate of Return
OTB (retail)
125%
When Dividing With Exponents
31. Commissions  fees for service  merchandise sales  rental income  royalties
percent decrease
ROG
Gross margin %
types of incomes
32. A^m/a^n = a^(mn)
36%
Sales per Transaction
Average Collection Turnover
When Dividing With Exponents
33. Net Sales / Average Retail Value of Inventory
To find the number from which a percentage has been deducted to achieve it  e.g. of what number is 16 a 25% decrease?
78
Inventory Turnover Rate
netprice with a 25/10/10 series discount
34. Convert 3 to a percent
underbought
gross sales
50/100
3%
35. Divide the result by 1the decrease proportion  eg) X=16/(10.25)=21.33  16 is a 25% decrease of 21.33
Break Even Point Formula
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?
Internal Rate of Return
36. Wholesale cost
gross margin
shortage
percent
cost of goods
37. A measure of the number of days needed to collect accounts receivable.
net sales
Average Collection Turnover
$ Retail
3%
38. After all discounts have been applied to find net amount due. $100 25% less trade discount 4% cash discount # + $20 freight!
overbought
When Dividing With Exponents
$252
With cash discounts and calculating net price  when to add 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?
GMROI
$2 127.66
physical inventory
2.5% per month
40. Convert 10/11 to a percent
90.9%
80/100
$ Retail
Quick Ratio
41. Capital stock  owner's equity (owner's funds invested in the business)
installment loan
steps in strategic planning
Compound interest formula with changing rates
types of capital
42. A plane flies 980 miles in 1 2/3 hours. How many miles does the plane average per hour
588 mph
physical inventory
378 63
OTB (retail)
43. Gross Margin/ Average Inventory Cost
$ Retail
Adding Fractions
GMROI
78
44. Two equivalent ratios joined by an equal sign.
transportation
588 mph
Proportion
overbought
45. A/b + c/b = (a+c)/b
Turnover
loss
operating expenses
Adding Fractions
46. 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)
Internal Rate of Return
cost of goods
588 mph
Unit pricing
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...
$ Cost
50/100
operating expenses
Average Daily Sales
48. Another way of counting part of a whole?
percent
Proportion
.56
To decrease a number by a given percentage  e.g. decrease 16 by 25%
49. Convert .36 to a percent
36%
588 mph
$2 127.66
Dividing Fractions
50. BOM $ Stock/ Sales for period
$6 655.50
41%
Stock to Sales Ratio
Break Even Point Formula