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Test your basic knowledge |
DSST Business Math
Start Test
Study First
Subjects
:
dsst
,
math
,
business-skills
,
business-math
,
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 re-enforces your understanding as you take the test each time.
1. GMROII = GM% x (Sales / Average Value of Inventory)
profit
overages
Gross Margin Return On Inventory Investment (GMROII)
types of incomes
2. The wholesale cost of goods plus the markup
$ Cost
16-18
Retail
cost of goods sold formula (COGS)
3. Net Sales for period/ Avg Stock for period
Retail
.56
percent
Turnover
4. Gross Margin/ Average Inventory Cost
types of capital
GMROI
operating expenses
Margin %
5. 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%
Current Ratio
FOB destination
Of what number 16 is a 25% increase
gross sales
6. 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
types of incomes
Extremes
income statement
7. Outside numbers in a ratio.
Extremes
overages
Margin %
2.5% per month
8. Liabilities - capital - income
types of capital
increase=credit
types of liabilities
$ Retail
9. Convert 65% to a decimal
shortage
20%
GMROI
.65
10. $ Cost x (100 + Mark-up %) / 100
$ Retail
The sum of a Geometric Progression
$ Cost
to determine equivalent single discount rate for 25/10/10 series discount
11. Accounts receivable - buildings - cash - copyrights - equiptment - furniture and fixtures - land - tomor vehicles
Average Daily Sales
types of assets
Means
Gross margin %
12. Loss of items due to damaged goods - stealing - etc.
shrinkage
DOI
cost of goods sold formula (COGS)
Sell Thru %
13. A count of every item on the floor - in stock rooms - warehouse - etc. to determine whether shortages or overages are occuring
15
physical inventory
70%
Turnover
14. He availability of your money is called _.
netprice with a 25/10/10 series discount
Liquidity
25
profit
15. Turning assets into cash.
Break Even Point
Liquidity of Assets
With cash discounts and calculating net price - when to add freight
physical inventory
16. S=X(1+r1)^y(1+r
Cost
The sum of a Geometric Progression
Compound interest formula with changing rates
Gross Margin Return On Inventory Investment (GMROII)
17. Inside numbers in a ratio.
types of incomes
80/100
income statement
Means
18. Direct labor - factory overhead - merchandise inventory - packaging - raw material
Simple interest formula
costs of goods sold
$ COST
Gross Margin Return On Inventory Investment (GMROII)
19. Cash or assets that can quickly be converted into cash.
125%
netprice with a 25/10/10 series discount
Current Assets
types of capital
20. What happens when your expenses - etc. are higher than your sales
Markdown %
profit and loss statement
loss
Break Even Point
21. Units Sold/ (Units Sold + On Hand Inventory)
Margin %
60
Markdown %
Sell Thru %
22. cash + receivables/ current liabilities.
Simple interest formula
steps in strategic planning
Quick Ratio
.7
23. 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
Gross Margin Return On Inventory Investment (GMROII)
cost of goods
netprice with a 25/10/10 series discount
EOM (in terms of invoice)
24. 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...
operating expenses
types of capital
588 mph
4%
25. Convert 41/100 to a percent
types of capital
net sales
cost of goods
41%
26. What does percent mean?
Gross Margin Return On Inventory Investment (GMROII)
FOB destination
underbought
per hundred
27. accounts receivable/ average daily sales
percent
Dividing Fractions
Average Collection Turnover
profit and loss statement
28. A/b
OTB (retail)
Liquidity
Multiplying Fractions
steps in strategic planning
29. Alignment of the decimals is not important
types of incomes
when multiplying numbers that contain decimals:
Subtracting Fractions
Effective annual rate of interest formula
30. 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
Gross Margin Return On Inventory Investment (GMROII)
COD
profit
Current Ratio
31. 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?
1.304
16-18
costs of goods sold
$2 -127.66
32. 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
The sum of a Geometric Progression
underbought
4%
Discounting Formula
33. Sales - cost of goods sold
overages
Gross margin dollars
Break Even Point
3%
34. Capital stock - owner's equity (owner's funds invested in the business)
Simple interest formula
Means
types of capital
to determine equivalent single discount rate for 25/10/10 series discount
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
16-18
when multiplying numbers that contain decimals:
types of liabilities
To find the number from which a percentage has been deducted to achieve it - e.g. of what number is 16 a 25% decrease?
36. Multiply the number by 1+the increase proportion - e.g. 16(1+0.25) = 161.25 = 20 - 20 is a 25% increase over 16
To increase a number by a given percentage - e.g. increase 16 by 25%
Average Collection Turnover
Markdown %
Current Ratio
37. 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
The sum of a Geometric Progression
36%
Average Daily Sales
To increase a number by a given percentage - e.g. increase 16 by 25%
38. Gross margin dollars/Net sales dollars (multiply by 100 to express as percentage) or (Selling price - cost) x 100 / Selling price
Stock to Sales Ratio
$6 -655.50
Gross margin %
cost of goods
39. Another way of counting part of a whole?
percent
GMROI
Turnover
EOM (in terms of invoice)
40. Amount decrease (Original - New) / Original amount = decimal= convert to %
Gross Margin Return On Inventory Investment (GMROII)
types of assets
Of what number 16 is a 25% increase
percent decrease
41. 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
profit and loss statement
physical inventory
transportation
$ Markdown
42. A/b + c/b = (a+c)/b
78
Adding Fractions
To decrease a number by a given percentage - e.g. decrease 16 by 25%
FOB destination
43. 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 $31.50. What was the rate of interest?
Compound interest formula with changing rates
2.5% per month
overbought
ROG
44. A value or an expression of how fast merchandise moves through the store; also called turn. formula: turn - NS$ / Average Stock$ (average stock$ = BOM$ + EOM$)/(#BOM + 1)
stock turn
Margin %
Effective annual rate of interest formula
Gross margin dollars
45. Original retail price - Lower retail price
$ Cost
cost of goods
installment loan
$ Markdown
46. Convert 50% to a fraction
25
income statement
Sell Thru %
50/100
47. Wholesale cost
types of capital
14/100
60
cost of goods
48. total fixed costs/ selling price-variable cost
36%
$ Markdown
Gross Margin Return On Inventory Investment (GMROII)
Break Even Point Formula
49. Beginning inventory + Purchases - Ending inventory
To decrease a number by a given percentage - e.g. decrease 16 by 25%
$252
stock turn
cost of goods sold formula (COGS)
50. The wholesale cost of an item (cost of goods - or COG)
3%
$ Cost
profit
Cost