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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. Assets - cost of goods sold - expenses






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






3. Convert 20 to a percent






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






6. A measure of the number of days needed to collect accounts receivable.






7. 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






8. Two equivalent ratios joined by an equal sign.






9. Liabilities - capital - income






10. total fixed costs/ selling price-variable cost






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






12. total annual sales/365






13. 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






14. Convert 70/100 to a percent






15. 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






16. What is the product of 3.26 and 0.4?






17. Convert 3 to a percent






18. Loss of items due to damaged goods - stealing - etc.






19. 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)






20. Direct labor - factory overhead - merchandise inventory - packaging - raw material






21. A/b






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






23. Multiply the number by 1+the increase proportion - e.g. 16(1+0.25) = 161.25 = 20 - 20 is a 25% increase over 16






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






25. 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






26. Amount decrease (Original - New) / Original amount = decimal= convert to %






27. Commissions - fees for service - merchandise sales - rental income - royalties






28. The wholesale cost of an item (cost of goods - or COG)






29. Another way of counting part of a whole?






30. accounts receivable/ average daily sales






31. 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?






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






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






34. The average car payment is $_ per month for _ months.






35. The average car will lose _% of its value in the first 4 years.






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






37. A/b






38. cash + receivables/ current liabilities.






39. Original retail price - Lower retail price






40. ($ Retail x 100 / COST) - 100






41. 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?






42. The recommended house payment should be no more than _% of your monthly take-home pay.






43. A count of every item on the floor - in stock rooms - warehouse - etc. to determine whether shortages or overages are occuring






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






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






46. 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...






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






48. Inside numbers in a ratio.






49. Sales - cost of goods sold






50. 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