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Test your basic knowledge |
DSST Business Math
Start Test
Study First
Subjects
:
dsst
,
math
,
business-skills
,
business-math
,
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 re-enforces your understanding as you take the test each time.
1. Convert 50% to a fraction
50/100
types of assets
15
Effective annual rate of interest formula
2. 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
.56
OTB (retail)
COD
Subtracting Fractions
3. The value of the inventory as kept in the handwritten ledgers or computer system; formula: book$ = merchandise available$ - NS$ - (MD$ + ED$)
book value
$ Cost
$2 -127.66
16-18
4. Liabilities - capital - income
Effective annual rate of interest formula
COD
increase=credit
$252
5. You should never take out more than a _ year mortgage.
When Dividing With Exponents
$ COST
15
increase=debit
6. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods
percent decrease
Effective annual rate of interest formula
income statement
increase=debit
7. Sales - cost of goods sold
transportation
Gross margin dollars
Markup
62%
8. Beginning inventory + Purchases - Ending inventory
Subtracting Fractions
Multiplying Fractions
gross margin
cost of goods sold formula (COGS)
9. A fraction in which the denominator is equal to or less than the numerator is a(an) ______________ fraction.
EOM (in terms of invoice)
improper
Liquidity
Gross margin %
10. Convert 65% to a decimal
netprice with a 25/10/10 series discount
.65
2.5% per month
90.9%
11. Assets - cost of goods sold - expenses
Gross Margin Return On Inventory Investment (GMROII)
Simple interest formula
increase=debit
50/100
12. What happens when your sales are higher than your expenses - etc.
15
installment loan
% increase or decrease
profit
13. 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?
2.5% per month
steps in strategic planning
income statement
Inventory Turnover Rate
14. Another way of counting part of a whole?
loss
$ Cost
Break Even Point
percent
15. Convert 70% to a decimal
profit and loss statement
.7
cost of goods sold formula (COGS)
Break Even Point Formula
16. Divide the result by 1+the increase proportion eg) X=16/(1+0.25) = 12.8 - 16 is a 25% increase over 12.8
Cost
types of liabilities
To decrease a number by a given percentage - e.g. decrease 16 by 25%
Of what number 16 is a 25% increase
17. 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
Average Daily Sales
$ Retail
profit and loss statement
36%
18. The wholesale cost of an item (cost of goods - or COG)
cost of goods sold formula (COGS)
Cost
DOI
15
19. S=X(1+r1)^y(1+r
increase=debit
percent decrease
EOM (in terms of invoice)
Compound interest formula with changing rates
20. Direct labor - factory overhead - merchandise inventory - packaging - raw material
Gross Margin Return On Inventory Investment (GMROII)
4%
costs of goods sold
physical inventory
21. Turning assets into cash.
stock turn
FOB destination
EOM (in terms of invoice)
Liquidity of Assets
22. Cash or assets that can quickly be converted into cash.
$ Retail
Mark Up %
$ COST
Current Assets
23. (Retail - Cost)/ Retail
Dividing Fractions
Simple interest formula
Stock to Sales Ratio
Margin %
24. 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?
ROG
$ COST
Adding Fractions
$252
25. Convert 1.25 to a percent
125%
Adding Fractions
1.304
costs of goods sold
26. $ Cost/ (100%-markup%)
To find the number from which a percentage has been deducted to achieve it - e.g. of what number is 16 a 25% decrease?
$ Retail
profit and loss statement
14/100
27. Capital stock - owner's equity (owner's funds invested in the business)
78
types of capital
types of incomes
cost of goods
28. total fixed costs/ selling price-variable cost
Current Assets
36%
FOB destination
Break Even Point Formula
29. 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)
netprice with a 25/10/10 series discount
588 mph
stock turn
The sum of a Geometric Progression
30. 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
Compound interest formula with changing rates
types of expenses
Liquidity of Assets
GMROI
31. 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?
% increase or decrease
operating expenses
To increase a number by a given percentage - e.g. increase 16 by 25%
$2 -127.66
32. Receipt of goods; the cash discount period and net period begin with the date of receipt of goods; ex: 8/10 ROG - n/30
ROG
Break Even Point Formula
Mark Up %
per hundred
33. Inside numbers in a ratio.
Means
gross margin
FOB destination
Unit pricing
34. cash + receivables/ current liabilities.
Adding Fractions
Quick Ratio
loss
Break Even Point Formula
35. 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)
Simple interest formula
15
Average Collection Turnover
4%
36. Convert 14% to a fraction
shortage
physical inventory
Gross margin %
14/100
37. Convert .62 to a percent
operating expenses
physical inventory
125%
62%
38. Convert 70/100 to a percent
per hundred
70%
Break Even Point Formula
Average Collection Turnover
39. 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
types of capital
14/100
Extremes
EOM (in terms of invoice)
40. total annual sales/365
Average Daily Sales
per hundred
Average Collection Turnover
36%
41. He availability of your money is called _.
Liquidity
50/100
Break Even Point Formula
60
42. A/b
$ Retail
Simple interest formula
Multiplying Fractions
The sum of a Geometric Progression
43. 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
$ Cost
% increase or decrease
Discounting Formula
book value
44. Amount decrease (Original - New) / Original amount = decimal= convert to %
15
90.9%
percent decrease
COD
45. A/b + c/b = (a+c)/b
Adding Fractions
percent decrease
Current Ratio
Markdown %
46. Shortage$ = book$ - physical count$; shortage% = shortage$/NS$
costs of goods sold
shortage
.7
Multiplying Fractions
47. Original retail price - Lower retail price
underbought
overages
1.304
$ Markdown
48. 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%
gross sales
types of incomes
125%
transportation
49. A measure of the number of days needed to collect accounts receivable.
Average Collection Turnover
4%
physical inventory
to determine equivalent single discount rate for 25/10/10 series discount
50. Planned Sales + Planned Markdowns + Planned EOM - Planned BOM
types of incomes
profit and loss statement
Simple interest formula
OTB (retail)