## Test your basic knowledge |

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. What is the product of 3.26 and 0.4?

2. You should never take out more than a _ year mortgage.

3. Inside numbers in a ratio.

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

5. Gross Margin/ Average Inventory Cost

6. If freight is to be paid by the seller - the shipping terms are...

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

8. Turning assets into cash.

9. A team won 16 games and lost 9 games. What percent of games did the team lose?

10. 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

11. Convert 1/4 to a percent

12. 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

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

14. 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

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

16. % of 90 days same as cash convert to payments.

17. Overage\$ = book\$ - physical count\$; overage% = overage\$/NS\$

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

19. Net Sales / Average Retail Value of Inventory

20. Actual retail sales; the retail price at which one tiem is sold is combined with the retail prices of all the items that are sold to become the net sales amount.

21. total annual sales/365

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

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

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

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

26. 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)

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

28. A count of every item on the floor - in stock rooms - warehouse - etc. to determine whether shortages or overages are occuring

29. 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?

30. \$ Cost/ (100%-markup%)

31. Beginning inventory + Purchases - Ending inventory

32. Outside numbers in a ratio.

33. Convert .4 to a percent

34. The average person will have _ jobs in their lifetime.

35. Convert 10/11 to a percent

36. Convert 50% to a fraction

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

38. Use compliments - Step 1 Find compliments 25% = 100-25%= 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%

39. A/b

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

41. Cash or assets that can quickly be converted into cash.

42. Two equivalent ratios joined by an equal sign.

43. 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?

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

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

46. (TY-LY)/ LY or (Plan-Actual)/

47. (\$ Retail x 100 / COST) - 100

48. Planned Sales + Planned Markdowns + Planned EOM - Planned BOM

49. The recommended house payment should be no more than _% of your monthly take-home pay.

50. Date of invoice - the cash discount terms will have no dating within the discount statement; ex: 4/10 - n/30