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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. Cash or assets that can quickly be converted into cash.
Liquidity
Current Assets
$ COST
overbought
2. IRR=1 + [(NPV1/NPV1NPV2)(21)]% Where: 1=one interest rate 2=the other NPV1=the NPV at rate 1 NPV2=the NPV at rate 2 (NPV = Net Present Value)
Internal Rate of Return
Sales per Transaction
Sell Thru %
Subtracting Fractions
3. Loss of items due to damaged goods  stealing  etc.
50/100
.7
improper
shrinkage
4. ($ Retail x 100 / COST)  100
per hundred
GMROI
physical inventory
Mark Up %
5. 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
Discounting Formula
378 63
Gross margin dollars
percent decrease
6. 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)
To increase a number by a given percentage  e.g. increase 16 by 25%
operating expenses
25
7. 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
profit and loss statement
per hundred
Stock to Sales Ratio
cost of goods sold formula (COGS)
8. A plane flies 980 miles in 1 2/3 hours. How many miles does the plane average per hour
588 mph
Unit pricing
To increase a number by a given percentage  e.g. increase 16 by 25%
Cost
9. Convert 14% to a fraction
netprice with a 25/10/10 series discount
20%
14/100
Discounting Formula
10. 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
14/100
1.304
COD
Markdown %
11. Wholesale cost
net sales
Liquidity
Sales per Transaction
cost of goods
12. You should never take out more than a _ year mortgage.
Break Even Point Formula
Sell Thru %
15
cost of goods sold formula (COGS)
13. 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?
Sell Thru %
Cost
$252
Liquidity of Assets
14. What does percent mean?
Gross Margin Return On Inventory Investment (GMROII)
per hundred
$ Retail
588 mph
15. Sales  cost of goods sold
Markdown %
Simple interest formula
to determine equivalent single discount rate for 25/10/10 series discount
Gross margin dollars
16. A/b  c/b = ac/b
Subtracting Fractions
Liquidity
Cost
Stock to Sales Ratio
17. current assets/ current liabilities
stock turn
types of capital
Current Ratio
Current Assets
18. total annual sales/365
netprice with a 25/10/10 series discount
Average Daily Sales
Unit pricing
installment loan
19. Accounts payable  bonds  notes payable (bank loans)  provisions for pensions
1618
Break Even Point
types of liabilities
3%
20. Convert 70/100 to a percent
book value
To increase a number by a given percentage  e.g. increase 16 by 25%
percent
70%
21. GMROII = GM% x (Sales / Average Value of Inventory)
Current Ratio
Gross Margin Return On Inventory Investment (GMROII)
Sell Thru %
With cash discounts and calculating net price  when to add freight
22. 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
stock turn
overbought
transportation
23. 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?
$ COST
$2 127.66
costs of goods sold
loss
24. Liabilities  capital  income
50/100
netprice with a 25/10/10 series discount
$2 127.66
increase=credit
25. Shortage$ = book$  physical count$; shortage% = shortage$/NS$
70%
14/100
book value
shortage
26. When sales plans are underestimated and the stock purchases result in a low inventory
types of assets
underbought
Current Ratio
gross margin
27. 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
Extremes
types of capital
net sales
28. BOM $ Stock/ Sales for period
Current Assets
Compound interest formula with changing rates
Stock to Sales Ratio
Proportion
29. Beginning inventory + Purchases  Ending inventory
Gross margin %
cost of goods sold formula (COGS)
percent decrease
36%
30. The recommended house payment should be no more than _% of your monthly takehome pay.
$252
25
transportation
Means
31. Convert 20 to a percent
.7
41%
20%
$2 127.66
32. 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
types of assets
overbought
costs of goods sold
steps in strategic planning
33. Accounts receivable  buildings  cash  copyrights  equiptment  furniture and fixtures  land  tomor vehicles
types of assets
gross margin
Break Even Point Formula
20%
34. A/b
Dividing Fractions
80/100
Average Collection Turnover
15
35. 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
types of expenses
Gross margin %
gross margin
Break Even Point
36. Convert 3 to a percent
To increase a number by a given percentage  e.g. increase 16 by 25%
increase=debit
3%
60
37. Convert 56% to a decimal
.56
$ Markdown
increase=debit
$252
38. The average car payment is $_ per month for _ months.
Dividing Fractions
physical inventory
378 63
14/100
39. He availability of your money is called _.
To decrease a number by a given percentage  e.g. decrease 16 by 25%
Internal Rate of Return
Liquidity
Inventory Turnover Rate
40. The average person will have _ jobs in their lifetime.
underbought
1618
$ Markdown
Average Collection Turnover
41. Convert 41/100 to a percent
41%
Gross margin %
1618
Quick Ratio
42. When slaes plans are overestimated and the stock purchases result in a stockpiled inventory
overbought
$2 127.66
when multiplying numbers that contain decimals:
stock turn
43. $ Cost x (100 + Markup %) / 100
Quick Ratio
$ Retail
Adding Fractions
cost of goods
44. What is the product of 3.26 and 0.4?
1618
Simple interest formula
78
1.304
45. A measure of the number of days needed to collect accounts receivable.
Average Collection Turnover
Markup
costs of goods sold
Markdown %
46. The wholesale cost of goods plus the markup
types of expenses
125%
Retail
physical inventory
47. The wholesale cost of an item (cost of goods  or COG)
Cost
DOI
per hundred
installment loan
48. What happens when your sales are higher than your expenses  etc.
EOM (in terms of invoice)
profit and loss statement
Of what number 16 is a 25% increase
profit
49. Inside numbers in a ratio.
25
Means
1.304
588 mph
50. 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.
types of expenses
operating expenses
shrinkage
net sales