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. A/b






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






3. The average car payment is $_ per month for _ months.






4. 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)






5. 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)






6. Inside numbers in a ratio.






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






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






9. A plane flies 980 miles in 1 2/3 hours. How many miles does the plane average per hour






10. 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






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






12. Beginning inventory + Purchases - Ending inventory






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






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






15. Shortage$ = book$ - physical count$; shortage% = shortage$/NS$






16. 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






17. Turning assets into cash.






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






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






20. Gross Margin/ Average Inventory Cost






21. A/b - c/b = a-c/b






22. accounts receivable/ average daily sales






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






24. cash + receivables/ current liabilities.






25. current assets/ current liabilities






26. 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?






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






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






29. $ RETAIL X (100 - GM %) / 100






30. 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%






31. Total Net Sales / Total Number of Transactions






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






33. Net Sales / Average Retail Value of Inventory






34. Net Sales for period/ Avg Stock for period






35. He availability of your money is called _.






36. 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






37. total fixed costs/ selling price-variable cost






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






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






40. 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






41. 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






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






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






44. Two equivalent ratios joined by an equal sign.






45. $ Cost x (100 + Mark-up %) / 100






46. Convert 1/4 to a percent






47. Convert 10/11 to a percent






48. Outside numbers in a ratio.






49. 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...






50. Formula: GM = NS - COG; GM$ = NS$ X GM%