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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. 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?






2. Two equivalent ratios joined by an equal sign.






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






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






5. Original retail price - Lower retail price






6. Convert .62 to a percent






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






8. 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.






9. cash + receivables/ current liabilities.






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






11. Convert 10/11 to a percent






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






13. A/b






14. 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






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






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






17. 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...






18. 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)






19. Total Net Sales / Total Number of Transactions






20. Convert 20 to a percent






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






22. 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






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






24. ($ Retail x 100 / COST) - 100






25. 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






26. $ retail x (100%-markup)






27. 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)






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






29. 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?






30. Convert 56% to a decimal






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






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






33. Convert 50% to a fraction






34. 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






35. 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






36. Outside numbers in a ratio.






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






38. Convert 80% to a fraction






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






40. Assets - cost of goods sold - expenses






41. 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%






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






43. current assets/ current liabilities






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






45. The point at which you stop losing money.






46. Direct labor - factory overhead - merchandise inventory - packaging - raw material






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






48. Wholesale cost






49. 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%






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