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

**2. $ RETAIL X (100 - GM %) / 100**

**3. 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?**

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

**5. Convert 41/100 to a percent**

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

**7. Total Net Sales / Total Number of Transactions**

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

**9. A fraction in which the denominator is equal to or less than the numerator is a(an) ______________ fraction.**

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

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

**12. accounts receivable/ average daily sales**

**13. Two equivalent ratios joined by an equal sign.**

**14. Shortage$ = book$ - physical count$; shortage% = shortage$/NS$**

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

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

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

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

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

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

**21. Convert 70/100 to a percent**

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

**23. When sales plans are underestimated and the stock purchases result in a low inventory**

**24. Use compliments - Step 1 Find compliments 25% = 100-25%= 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%**

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

**26. What is the product of 3.26 and 0.4?**

**27. Sales - cost of goods sold**

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

**29. Convert 1.25 to a percent**

**30. Convert .4 to a percent**

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

**32. Overage$ = book$ - physical count$; overage% = overage$/NS$**

**33. % of 90 days same as cash convert to payments.**

**34. Beginning inventory + Purchases - Ending inventory**

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

**36. 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**

**37. 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%**

**38. 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)**

**39. Convert .62 to a percent**

**40. Convert 10/11 to a percent**

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

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

**43. Capital stock - owner's equity (owner's funds invested in the business)**

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

**45. Convert 20 to a percent**

**46. The value of the inventory as kept in the handwritten ledgers or computer system; formula: book$ = merchandise available$ - NS$ - (MD$ + ED$)**

**47. Aka - the terminal value of an investment to which equal annual amounts will be added S=[A(R^n -1)]/R-1 Where: S=the terminal value A=the first term R=the common ratio n=the number of terms**

**48. 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.**

**49. Convert 14% to a fraction**

**50. Turning assets into cash.**