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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. Receipt of goods; the cash discount period and net period begin with the date of receipt of goods; ex: 8/10 ROG  n/30
Effective annual rate of interest formula
ROG
underbought
percent
2. ($ Retail x 100 / COST)  100
2.5% per month
$ Cost
Mark Up %
costs of goods sold
3. The recommended house payment should be no more than _% of your monthly takehome pay.
60
Stock to Sales Ratio
overages
25
4. 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)
2.5% per month
1.304
overages
Simple interest formula
5. Divide the result by 1+the increase proportion eg) X=16/(1+0.25) = 12.8  16 is a 25% increase over 12.8
book value
$ Cost
Unit pricing
Of what number 16 is a 25% increase
6. The average car will lose _% of its value in the first 4 years.
When Dividing With Exponents
Break Even Point Formula
60
COD
7. Sales  cost of goods sold
Markdown %
per hundred
Gross margin dollars
Average Collection Turnover
8. Accounts payable  bonds  notes payable (bank loans)  provisions for pensions
types of liabilities
70%
Break Even Point
62%
9. The wholesale cost of goods plus the markup
$ COST
Quick Ratio
gross margin
Retail
10. Formula: GM = NS  COG; GM$ = NS$ X GM%
loss
gross margin
underbought
overbought
11. 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
15
profit and loss statement
Inventory Turnover Rate
The sum of a Geometric Progression
12. The difference between the retail price and the cost of goods sold; it includes operating expenses  retail reductions  and profit
Markup
increase=credit
percent
Stock to Sales Ratio
13. What does percent mean?
Average Collection Turnover
Sell Thru %
per hundred
ROG
14. The wholesale cost of an item (cost of goods  or COG)
Cost
types of incomes
gross sales
COD
15. 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
Retail
To find the number from which a percentage has been deducted to achieve it  e.g. of what number is 16 a 25% decrease?
shrinkage
EOM (in terms of invoice)
16. When sales plans are underestimated and the stock purchases result in a low inventory
types of capital
net sales
underbought
overages
17. total fixed costs/ selling pricevariable cost
shrinkage
Break Even Point Formula
COD
1.304
18. $ retail x (100%markup)
DOI
Proportion
profit
$ Cost
19. 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.
$ Retail
net sales
Sales per Transaction
Average Collection Turnover
20. GMROII = GM% x (Sales / Average Value of Inventory)
percent
net sales
% increase or decrease
Gross Margin Return On Inventory Investment (GMROII)
21. Gross margin dollars/Net sales dollars (multiply by 100 to express as percentage) or (Selling price  cost) x 100 / Selling price
20%
Margin %
Gross margin %
3%
22. A team won 16 games and lost 9 games. What percent of games did the team lose?
Unit pricing
to determine equivalent single discount rate for 25/10/10 series discount
36%
To increase a number by a given percentage  e.g. increase 16 by 25%
23. A/b
Multiplying Fractions
Dividing Fractions
increase=credit
ROG
24. (TYLY)/ LY or (PlanActual)/
% increase or decrease
physical inventory
62%
$ Markdown
25. Convert 70% to a decimal
.7
per hundred
.56
$2 127.66
26. 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
increase=credit
Current Ratio
Turnover
profit and loss statement
27. Convert 56% to a decimal
Means
to determine equivalent single discount rate for 25/10/10 series discount
.56
Compound interest formula with changing rates
28. 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
FOB destination
to determine equivalent single discount rate for 25/10/10 series discount
shrinkage
29. Another way of counting part of a whole?
percent
Current Ratio
.56
EOM (in terms of invoice)
30. Convert 3 to a percent
ROG
increase=credit
588 mph
3%
31. Commissions  fees for service  merchandise sales  rental income  royalties
1.304
types of incomes
GMROI
Retail
32. A form of closedend credit used for purchasing durable goods such as cars
installment loan
36%
physical inventory
Liquidity of Assets
33. A^m/a^n = a^(mn)
When Dividing With Exponents
book value
Means
% increase or decrease
34. A/b  c/b = ac/b
Quick Ratio
netprice with a 25/10/10 series discount
Subtracting Fractions
loss
35. Multiply the number by 1+the increase proportion  e.g. 16(1+0.25) = 161.25 = 20  20 is a 25% increase over 16
$6 655.50
To increase a number by a given percentage  e.g. increase 16 by 25%
70%
book value
36. 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
Quick Ratio
To decrease a number by a given percentage  e.g. decrease 16 by 25%
COD
Inventory Turnover Rate
37. Capital stock  owner's equity (owner's funds invested in the business)
types of capital
Break Even Point Formula
Turnover
Gross margin %
38. Convert 1.25 to a percent
125%
DOI
80/100
physical inventory
39. Planned Sales + Planned Markdowns + Planned EOM  Planned BOM
Average Collection Turnover
OTB (retail)
Current Ratio
$2 127.66
40. Divide the result by 1the decrease proportion  eg) X=16/(10.25)=21.33  16 is a 25% decrease of 21.33
To find the number from which a percentage has been deducted to achieve it  e.g. of what number is 16 a 25% decrease?
378 63
per hundred
60
41. Convert 14% to a fraction
14/100
Break Even Point
Of what number 16 is a 25% increase
netprice with a 25/10/10 series discount
42. After 4 years  $5 000 will grow to how much if it earns 10% interest?
$6 655.50
Average Collection Turnover
Break Even Point
$ Retail
43. Shortage$ = book$  physical count$; shortage% = shortage$/NS$
Sales per Transaction
shortage
increase=credit
stock turn
44. $ Markdown/ $ Net Sales (multiply result by 100 to express as percentage)
Effective annual rate of interest formula
loss
Average Collection Turnover
Markdown %
45. Net Sales for period/ Avg Stock for period
Turnover
percent decrease
62%
underbought
46. Beginning inventory + Purchases  Ending inventory
COD
cost of goods sold formula (COGS)
25
Turnover
47. 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?
To decrease a number by a given percentage  e.g. decrease 16 by 25%
$2 127.66
Proportion
$252
48. 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
steps in strategic planning
378 63
1618
Compound interest formula with changing rates
49. (Retail  Cost)/ Retail
Margin %
improper
ROG
25%
50. What happens when your sales are higher than your expenses  etc.
Average Collection Turnover
profit
costs of goods sold
Current Ratio