Applied Business Math Test 1 (Ch. 5-8) Exam Questions with 100% Verified Answers

Constants - ANSWER-Numbers that have a fixed value. Equation - ANSWER-Math statement that shows equality for expressions or numbers. Expression - ANSWER-A meaningful combination of numbers and letters called terms. Formula - ANSWER-Equation that expresses in symbols a general fact, rule, or principle. Unknown - ANSWER-The variable we are solving for. Variables - ANSWER-Letters or symbols that represent unknowns. Base - ANSWER-Number that represents the whole 100%. It is the whole to which something is being compared. Usually follows the word of. Percent Decrease - ANSWER-Calculated by decrease in price over original amount. Percent Increase - ANSWER-Calculated by increase in price over original amount. Percents - ANSWER-Stands for hundredths. Portion - ANSWER-Amount, part, or portion that results from multiplying the base times the rate. Not expressed as a percent; it is expressed as a number. Rate - ANSWER-Percent that is multiplied times the base that indicates what part of the base we are trying to compare to. Rate is not a whole number. Cash Discount - ANSWER-Savings that result from early payment by taking advantage of discounts offered by the seller; discount is not taken on freight or taxes. Chain Discounts - ANSWER-Two or more trade discounts that are applied to the balance remaining after the previous discount is taken. Complement - ANSWER-100% less the stated percent. Credit Period - ANSWER-Credit days are counted from date of invoice. Discount Period - ANSWER-Amount of time to take advantage of a cash discount.