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Test your basic knowledge 
DSST Business Math
Start Test
Study First
Subjects
:
dsst
,
math
,
businessskills
,
businessmath
,
bvat
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 reenforces your understanding as you take the test each time.
1. After all discounts have been applied to find net amount due. $100 25% less trade discount 4% cash discount # + $20 freight!
78
1618
With cash discounts and calculating net price  when to add freight
Gross Margin Return On Inventory Investment (GMROII)
2. Use compliments  Step 1 Find compliments 25% = 10025%= 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%
to determine equivalent single discount rate for 25/10/10 series discount
Average Collection Turnover
To increase a number by a given percentage  e.g. increase 16 by 25%
types of incomes
3. 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
EOM (in terms of invoice)
Proportion
70%
To increase a number by a given percentage  e.g. increase 16 by 25%
4. Cash or assets that can quickly be converted into cash.
The sum of a Geometric Progression
Compound interest formula with changing rates
Current Assets
Effective annual rate of interest formula
5. Convert 3 to a percent
3%
$252
shortage
transportation
6. (TYLY)/ LY or (PlanActual)/
The sum of a Geometric Progression
% increase or decrease
Liquidity
25
7. Convert .36 to a percent
$ Retail
36%
ROG
15
8. A^m/a^n = a^(mn)
4%
Sales per Transaction
When Dividing With Exponents
cost of goods sold formula (COGS)
9. 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
to determine equivalent single discount rate for 25/10/10 series discount
Internal Rate of Return
loss
Discounting Formula
10. Original retail price  Lower retail price
50/100
income statement
$ Markdown
Quick Ratio
11. Loss of items due to damaged goods  stealing  etc.
Unit pricing
shrinkage
profit and loss statement
types of assets
12. When slaes plans are overestimated and the stock purchases result in a stockpiled inventory
Break Even Point Formula
Gross margin %
percent decrease
overbought
13. Multiply the number by 1the decrease proportion  e.g. 16(10.25) = 160.75 = 12  12 is a 25% decrease of 16
15
costs of goods sold
To decrease a number by a given percentage  e.g. decrease 16 by 25%
overages
14. accounts receivable/ average daily sales
Average Collection Turnover
Cost
36%
Means
15. The recommended house payment should be no more than _% of your monthly takehome pay.
$ Retail
improper
overbought
25
16. Convert 56% to a decimal
increase=debit
Current Ratio
improper
.56
17. What is the product of 3.26 and 0.4?
With cash discounts and calculating net price  when to add freight
increase=debit
increase=credit
1.304
18. Gross Margin/ Average Inventory Cost
Dividing Fractions
Current Assets
GMROI
50/100
19. Convert 41/100 to a percent
41%
1.304
Retail
$ Retail
20. Aka  the terminal value of an investment to which equal annual amounts will be added S=[A(R^n 1)]/R1 Where: S=the terminal value A=the first term R=the common ratio n=the number of terms
Gross margin dollars
.56
The sum of a Geometric Progression
profit and loss statement
21. 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
transportation
costs of goods sold
Sales per Transaction
Markup
22. 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.
net sales
$6 655.50
Gross Margin Return On Inventory Investment (GMROII)
Dividing Fractions
23. Amount decrease (Original  New) / Original amount = decimal= convert to %
steps in strategic planning
per hundred
percent decrease
Adding Fractions
24. Direct labor  factory overhead  merchandise inventory  packaging  raw material
78
costs of goods sold
25%
Average Collection Turnover
25. 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?
$252
Dividing Fractions
loss
Internal Rate of Return
26. Date of invoice  the cash discount terms will have no dating within the discount statement; ex: 4/10  n/30
Compound interest formula with changing rates
types of expenses
Liquidity of Assets
DOI
27. Capital stock  owner's equity (owner's funds invested in the business)
types of capital
125%
$ Retail
15
28. total fixed costs/ selling pricevariable cost
Break Even Point Formula
Proportion
36%
gross margin
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)
$2 127.66
Simple interest formula
50/100
1618
30. A team won 16 games and lost 9 games. What percent of games did the team lose?
The sum of a Geometric Progression
$ Markdown
36%
to determine equivalent single discount rate for 25/10/10 series discount
31. Multiply the number by 1+the increase proportion  e.g. 16(1+0.25) = 161.25 = 20  20 is a 25% increase over 16
To increase a number by a given percentage  e.g. increase 16 by 25%
shortage
income statement
15
32. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods
Effective annual rate of interest formula
$252
Average Daily Sales
increase=credit
33. Start with list price  List price: $6400 x 25%  x 10%  x10% %  Taken one after another(subtract)
income statement
Sell Thru %
netprice with a 25/10/10 series discount
The sum of a Geometric Progression
34. Another way of counting part of a whole?
To increase a number by a given percentage  e.g. increase 16 by 25%
Retail
Multiplying Fractions
percent
35. Outside numbers in a ratio.
Discounting Formula
installment loan
25
Extremes
36. When refunds or retail price reductions are given to customers  these activities reduce the value of this (also known as initial sales). formula: GS = NS + RED; GS$ = NS$ X GS%
stock turn
gross sales
$2 127.66
types of incomes
37. $ RETAIL X (100  GM %) / 100
$ COST
gross sales
1.304
With cash discounts and calculating net price  when to add freight
38. Inside numbers in a ratio.
Means
Simple interest formula
To find the number from which a percentage has been deducted to achieve it  e.g. of what number is 16 a 25% decrease?
25%
39. Gross margin dollars/Net sales dollars (multiply by 100 to express as percentage) or (Selling price  cost) x 100 / Selling price
Gross margin %
Compound interest formula with changing rates
gross sales
$ Cost
40. Another name for the P & L statement mainly used by managers planning sales or accountants formulating analyses
Compound interest formula with changing rates
36%
income statement
Liquidity
41. Convert 65% to a decimal
Margin %
percent
70%
.65
42. A count of every item on the floor  in stock rooms  warehouse  etc. to determine whether shortages or overages are occuring
Retail
70%
physical inventory
steps in strategic planning
43. 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...
3%
Retail
Margin %
operating expenses
44. The average car payment is $_ per month for _ months.
Dividing Fractions
types of capital
36%
378 63
45. Convert .62 to a percent
62%
Markdown %
To decrease a number by a given percentage  e.g. decrease 16 by 25%
types of capital
46. $ Cost x (100 + Markup %) / 100
Average Collection Turnover
$ Retail
.56
costs of goods sold
47. $ Cost/ (100%markup%)
.65
Current Ratio
$ Retail
To increase a number by a given percentage  e.g. increase 16 by 25%
48. Accounts receivable  buildings  cash  copyrights  equiptment  furniture and fixtures  land  tomor vehicles
Break Even Point
DOI
types of assets
$252
49. 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?
Multiplying Fractions
Quick Ratio
2.5% per month
DOI
50. After 4 years  $5 000 will grow to how much if it earns 10% interest?
.7
Markdown %
$6 655.50
50/100