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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. (TY-LY)/ LY or (Plan-Actual)/






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






3. Outside numbers in a ratio.






4. 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...






5. Turning assets into cash.






6. Actual retail sales; the retail price at which one tiem is sold is combined with the retail prices of all the items that are sold to become the net sales amount.






7. 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






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






9. GMROII = GM% x (Sales / Average Value of Inventory)






10. Original retail price - Lower retail price






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






12. Convert 70% to a decimal






13. Convert 20 to a percent






14. 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%






15. The wholesale cost of goods plus the markup






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






17. The wholesale cost of an item (cost of goods - or COG)






18. 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)






19. 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?






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






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






22. Convert 1.25 to a percent






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






24. 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?






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






26. 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






27. Net Sales for period/ Avg Stock for period






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






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






30. Convert 80% to a fraction






31. Convert 10/11 to a percent






32. 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






33. Convert .62 to a percent






34. Wholesale cost






35. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods






36. Assets - cost of goods sold - expenses






37. Convert 50% to a fraction






38. Multiply the number by 1-the decrease proportion - e.g. 16(1-0.25) = 160.75 = 12 - 12 is a 25% decrease of 16






39. 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%






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






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






42. 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






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






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






45. Convert 14% to a fraction






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






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






48. Sales - cost of goods sold






49. Convert 3 to a percent






50. Divide the result by 1-the decrease proportion - eg) X=16/(1-0.25)=21.33 - 16 is a 25% decrease of 21.33