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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. A measure of the number of days needed to collect accounts receivable.
Sell Thru %
16-18
Average Collection Turnover
Means
2. $ Markdown/ $ Net Sales (multiply result by 100 to express as percentage)
Unit pricing
Markdown %
.56
Inventory Turnover Rate
3. Convert 70/100 to a percent
Gross Margin Return On Inventory Investment (GMROII)
OTB (retail)
Sell Thru %
70%
4. Convert 41/100 to a percent
41%
$252
Compound interest formula with changing rates
80/100
5. 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?
The sum of a Geometric Progression
$ Retail
% increase or decrease
$2 -127.66
6. The value of the inventory as kept in the handwritten ledgers or computer system; formula: book$ = merchandise available$ - NS$ - (MD$ + ED$)
36%
50/100
book value
increase=debit
7. Convert 20 to a percent
20%
Turnover
types of liabilities
Gross margin %
8. Inside numbers in a ratio.
$ Retail
overbought
.56
Means
9. A count of every item on the floor - in stock rooms - warehouse - etc. to determine whether shortages or overages are occuring
36%
DOI
improper
physical inventory
10. Convert 65% to a decimal
.65
underbought
shrinkage
Retail
11. Commissions - fees for service - merchandise sales - rental income - royalties
OTB (retail)
50/100
16-18
types of incomes
12. Turning assets into cash.
Liquidity of Assets
underbought
installment loan
Means
13. Formula: GM = NS - COG; GM$ = NS$ X GM%
gross margin
Unit pricing
588 mph
Internal Rate of Return
14. Convert 1/4 to a percent
costs of goods sold
cost of goods sold formula (COGS)
125%
25%
15. Overage$ = book$ - physical count$; overage% = overage$/NS$
70%
book value
50/100
overages
16. Convert 56% to a decimal
.56
per hundred
installment loan
netprice with a 25/10/10 series discount
17. The recommended house payment should be no more than _% of your monthly take-home pay.
25
Means
To increase a number by a given percentage - e.g. increase 16 by 25%
COD
18. Another name for the P & L statement mainly used by managers planning sales or accountants formulating analyses
GMROI
Cost
income statement
125%
19. Amount decrease (Original - New) / Original amount = decimal= convert to %
Sales per Transaction
percent decrease
ROG
physical inventory
20. When sales plans are underestimated and the stock purchases result in a low inventory
Break Even Point Formula
125%
underbought
income statement
21. Assets - cost of goods sold - expenses
per hundred
increase=debit
36%
Stock to Sales Ratio
22. 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
Average Collection Turnover
Gross Margin Return On Inventory Investment (GMROII)
Extremes
Discounting Formula
23. Units Sold/ (Units Sold + On Hand Inventory)
cost of goods sold formula (COGS)
70%
income statement
Sell Thru %
24. 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)
78
Internal Rate of Return
improper
The sum of a Geometric Progression
25. If freight is to be paid by the seller - the shipping terms are...
FOB destination
transportation
80/100
Simple interest formula
26. Accounts payable - bonds - notes payable (bank loans) - provisions for pensions
income statement
Proportion
net sales
types of liabilities
27. What does percent mean?
per hundred
ROG
percent decrease
% increase or decrease
28. (TY-LY)/ LY or (Plan-Actual)/
Multiplying Fractions
to determine equivalent single discount rate for 25/10/10 series discount
Unit pricing
% increase or decrease
29. 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
EOM (in terms of invoice)
Average Collection Turnover
$2 -127.66
COD
30. Multiply the number by 1-the decrease proportion - e.g. 16(1-0.25) = 160.75 = 12 - 12 is a 25% decrease of 16
60
percent decrease
To decrease a number by a given percentage - e.g. decrease 16 by 25%
588 mph
31. 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
types of expenses
588 mph
physical inventory
Margin %
32. 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
70%
Inventory Turnover Rate
$ Retail
33. After 4 years - $5 -000 will grow to how much if it earns 10% interest?
62%
$6 -655.50
3%
$ Retail
34. The difference between the retail price and the cost of goods sold; it includes operating expenses - retail reductions - and profit
operating expenses
Markup
profit
Sell Thru %
35. The average car payment is $_ per month for _ months.
60
EOM (in terms of invoice)
378 63
operating expenses
36. Wholesale cost
$ COST
cost of goods
increase=credit
To increase a number by a given percentage - e.g. increase 16 by 25%
37. Convert .4 to a percent
378 63
4%
To decrease a number by a given percentage - e.g. decrease 16 by 25%
Dividing Fractions
38. What happens when your sales are higher than your expenses - etc.
4%
profit
Simple interest formula
Average Collection Turnover
39. A team won 16 games and lost 9 games. What percent of games did the team lose?
overages
When Dividing With Exponents
$2 -127.66
36%
40. Cash or assets that can quickly be converted into cash.
Current Assets
.7
ROG
Internal Rate of Return
41. BOM $ Stock/ Sales for period
125%
Proportion
.56
Stock to Sales Ratio
42. Convert 10/11 to a percent
90.9%
70%
When Dividing With Exponents
book value
43. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods
$6 -655.50
Effective annual rate of interest formula
70%
operating expenses
44. 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?
FOB destination
36%
$252
Dividing Fractions
45. Capital stock - owner's equity (owner's funds invested in the business)
When Dividing With Exponents
DOI
types of capital
Average Daily Sales
46. $ retail x (100%-markup)
Compound interest formula with changing rates
378 63
$ Cost
Internal Rate of Return
47. 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%
Average Daily Sales
to determine equivalent single discount rate for 25/10/10 series discount
Multiplying Fractions
per hundred
48. Beginning inventory + Purchases - Ending inventory
cost of goods sold formula (COGS)
Gross margin dollars
To increase a number by a given percentage - e.g. increase 16 by 25%
41%
49. Start with list price - List price: $6400 x 25% - x 10% - x10% % - Taken one after another(subtract)
gross sales
Margin %
netprice with a 25/10/10 series discount
Cost
50. total annual sales/365
$ Cost
Average Daily Sales
Current Assets
Average Collection Turnover