## 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. 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?

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

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

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

5. Two equivalent ratios joined by an equal sign.

6. Units Sold/ (Units Sold + On Hand Inventory)

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

8. Assets - cost of goods sold - expenses

9. 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

10. 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

11. 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

12. Net Sales for period/ Avg Stock for period

13. accounts receivable/ average daily sales

14. 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

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

16. cash + receivables/ current liabilities.

17. Convert .36 to a percent

18. 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)

19. Wholesale cost

20. Commissions - fees for service - merchandise sales - rental income - royalties

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

22. 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

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

24. Convert 14% to a fraction

25. (Retail - Cost)/ Retail

26. Alignment of the decimals is not important

27. \$ retail x (100%-markup)

28. Direct labor - factory overhead - merchandise inventory - packaging - raw material

29. Convert 10/11 to a percent

30. current assets/ current liabilities

31. Outside numbers in a ratio.

32. Convert 1/4 to a percent

33. 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

34. What is the product of 3.26 and 0.4?

35. Convert 70% to a decimal

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

37. Convert 56% to a decimal

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

39. The difference between the retail price and the cost of goods sold; it includes operating expenses - retail reductions - and profit

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

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

42. The wholesale cost of goods plus the markup

43. A/b

44. 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

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

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

47. Convert .62 to a percent

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

49. Convert 80% to a fraction

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