## 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. cost of an item expressed per unit of measure or count.

2. \$ RETAIL X (100 - GM %) / 100

3. 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?

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

5. Convert 41/100 to a percent

6. Another way of counting part of a whole?

7. Total Net Sales / Total Number of Transactions

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

9. A fraction in which the denominator is equal to or less than the numerator is a(an) ______________ fraction.

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

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

12. accounts receivable/ average daily sales

13. Two equivalent ratios joined by an equal sign.

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

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

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

17. Gross margin dollars/Net sales dollars (multiply by 100 to express as percentage) or (Selling price - cost) x 100 / Selling price

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

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

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

21. Convert 70/100 to a percent

22. BOM \$ Stock/ Sales for period

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

24. 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%

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

26. What is the product of 3.26 and 0.4?

27. Sales - cost of goods sold

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

29. Convert 1.25 to a percent

30. Convert .4 to a percent

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

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

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

34. Beginning inventory + Purchases - Ending inventory

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

36. 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

37. 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%

38. 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)

39. Convert .62 to a percent

40. Convert 10/11 to a percent

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

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

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

44. The wholesale cost of goods plus the markup

45. Convert 20 to a percent

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

47. 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

48. 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.

49. Convert 14% to a fraction

50. Turning assets into cash.