## Test your basic knowledge |

# 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. (1+R)=(1+r)^n Where: R=the effective annual rate r=the period rate n=the number of periods**

**2. Commissions - fees for service - merchandise sales - rental income - royalties**

**3. Convert 70% to a decimal**

**4. 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**

**5. 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)**

**6. Convert 3 to a percent**

**7. 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?**

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

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

**10. $ Cost x (100 + Mark-up %) / 100**

**11. Gross Margin/ Average Inventory Cost**

**12. Original retail price - Lower retail price**

**13. cost of an item expressed per unit of measure or count.**

**14. Direct labor - factory overhead - merchandise inventory - packaging - raw material**

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

**16. Formula: GM = NS - COG; GM$ = NS$ X GM%**

**17. A/b - c/b = a-c/b**

**18. A team won 16 games and lost 9 games. What percent of games did the team lose?**

**19. $ Markdown/ $ Net Sales (multiply result by 100 to express as percentage)**

**20. The average person will have _ jobs in their lifetime.**

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

**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**

**23. Convert .36 to a percent**

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

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

**26. Inside numbers in a ratio.**

**27. Convert 65% to a decimal**

**28. 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...**

**29. Another way of counting part of a whole?**

**30. Net Sales for period/ Avg Stock for period**

**31. The point at which you stop losing money.**

**32. $ retail x (100%-markup)**

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

**34. Cash or assets that can quickly be converted into cash.**

**35. 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**

**36. Planned Sales + Planned Markdowns + Planned EOM - Planned BOM**

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

**38. The wholesale cost of goods plus the markup**

**39. 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)**

**40. BOM $ Stock/ Sales for period**

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

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

**43. S=X(1+r1)^y(1+r**

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

**45. Convert 1/4 to a percent**

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

**47. 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**

**48. A/b**

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

**50. A/b**