## 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. 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**

**2. 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**

**3. The average car will lose _% of its value in the first 4 years.**

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

**5. Convert 1.25 to a percent**

**6. Outside numbers in a ratio.**

**7. Convert 56% to a decimal**

**8. He availability of your money is called _.**

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

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

**11. Multiply the number by 1+the increase proportion - e.g. 16(1+0.25) = 161.25 = 20 - 20 is a 25% increase over 16**

**12. Turning assets into cash.**

**13. Accounts receivable - buildings - cash - copyrights - equiptment - furniture and fixtures - land - tomor vehicles**

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

**15. Liabilities - capital - income**

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

**17. Direct labor - factory overhead - merchandise inventory - packaging - raw material**

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

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

**20. Gross Margin/ Average Inventory Cost**

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

**22. Cash or assets that can quickly be converted into cash.**

**23. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods**

**24. Convert 50% to a fraction**

**25. 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)**

**26. $ Markdown/ $ Net Sales (multiply result by 100 to express as percentage)**

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

**28. BOM $ Stock/ Sales for period**

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

**30. Convert .4 to a percent**

**31. The value of the inventory as kept in the handwritten ledgers or computer system; formula: book$ = merchandise available$ - NS$ - (MD$ + ED$)**

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

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

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

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

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

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

**38. Inside numbers in a ratio.**

**39. Convert 65% to a decimal**

**40. current assets/ current liabilities**

**41. Net Sales / Average Retail Value of Inventory**

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

**43. Convert .62 to a percent**

**44. 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**

**45. 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)**

**46. 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?**

**47. 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%**

**48. Convert 41/100 to a percent**

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

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