## 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. 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%**

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

**3. Commissions - fees for service - merchandise sales - rental income - royalties**

**4. 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**

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

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

**7. Net Sales for period/ Avg Stock for period**

**8. (Retail - Cost)/ Retail**

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

**10. Sales - cost of goods sold**

**11. Convert 3 to a percent**

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

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

**14. Convert 20 to a percent**

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

**16. A/b + c/b = (a+c)/b**

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

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

**19. The point at which you stop losing money.**

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

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

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

**23. A/b**

**24. $ Cost/ (100%-markup%)**

**25. Receipt of goods; the cash discount period and net period begin with the date of receipt of goods; ex: 8/10 ROG - n/30**

**26. 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?**

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

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

**29. 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)**

**30. cost of an item expressed per unit of measure or count.**

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

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

**33. Assets - cost of goods sold - expenses**

**34. 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**

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

**36. 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**

**37. 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.**

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

**39. Convert 1.25 to a percent**

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

**41. Two equivalent ratios joined by an equal sign.**

**42. 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?**

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

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

**45. 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)**

**46. total annual sales/365**

**47. accounts receivable/ average daily sales**

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

**49. Convert .62 to a percent**

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