Test your basic knowledge |

Retail Financials

Subject : business-skills
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. Short time - like 1 or 2 day sales






2. Dollar markup ($)/ cost price ($)






3. Statistical forecasting tool that helps retailers to predict how apparel markdowns may affect the bottom-line business and objectives before the markdowns are implemented






4. Ensures that there is enough cash to pay debts. Any time the ratio is colse to 1 - the retailer is said to be in a liquid position.






5. Assets collected within one year. Due to the widespread use of credit cards - AR for retailers has diminished with exceptions such as lay-a-way.






6. In the Cost Method. Merchandise most recently purchased is assumed to have been sold first. Therefore - the ending inventory reflects the items in stock for the longest period of time. Produces lowest ending inventory value and highest cost of goods






7. (gross margin % x Turnover) / (100%-markup %)






8. What the retailer owns in monetary value






9. Assesses the retailers ability to realize adequate return on the money that is invested by the retail owner.






10. Statistical forecasting tool that helps retailers to predict how apparel markdowns may affect the bottom-line business and objectives before the markdowns are implemented.






11. The awareness of the consumer to what they perceive to be the window of cost within which they will buy a particular product or service






12. Net dollar markdown/ net dollar selling price






13. AKA Return on Sales - Profit analysis; Indicates the extend to which retailers have the ability to cover their expenses and earn a profit - as well as a buyers ability to purchase the correct assortment of merchandise






14. Wrong Merchandise - odd assortment colors/sizes - seasonal goods






15. Price Lining - price zones - price ranges






16. Indicates gross margin derived from the sales of merchandise and it's ability to cover operating expenses. Helps a retailer determine how much rent they should pay - what salary the owner should draw - and how much they should pay their associates.






17. Current Assets/ Current Liabilities






18. Cash Received by the retailer-cash leaving the retailer






19. Total Expenses/ Net Sales






20. Revenues received by a retailer






21. Represents the total dollar markdown as a percentage of total dollar net sales. This is typically not for an individual item.






22. Merchandise Available for sale at cost/ Merchandise available for sale at retail






23. The cost of merchandise that was sold (including the method that was used to determine cost)






24. Net Profit/ Net Sales






25. Net Profit After Taxes/ Total Assets






26. Financial obligations that require payment within a short period of time (Wages - utitilites - Insurance)






27. Inventory Valuation Method where the cost to the retailer of each item purchased from a vendor is entered in the accounting system and/or placed on the merchandise item or on it's package. At times - freight charges are built into the cost. Coding of






28. Original Retail price- markdown selling price






29. Costs involved in running the business






30. Temporary price reduction for a specific period of time for the express purpose of generating store traffic and sales. Prices return to original retail price at end of sale period.






31. (planned expenses + planned operating profit + planned stock shortages + markdowns + employee and customer discounts) / (planned net sales + stock shortages + markdowns + employee and customer discounts) x 100%






32. To make a profit buyers must set an appropriate price considering many variables and using past experience and knowledge of future trends. A markup on an item does not typically remain constant.






33. Total Assets/ Net Worth






34. Merchandise will sell at highest price longer period of time - appear exclusive - sale of goods at regular price is not disrupted - greater amount of goods can be accumulated and then marked down.






35. In Cost Method. Merchandise sold during a time period is assumed to be sold in the order the merchandise was received. Merchandise on hand for the longest period of time is sold first. Therefore - the ending inventory reflects the items in stock for






36. The weather - merchandise is shopworn - economic downturn






37. Buying errors - promotion errors - pricing errors - uncontrollable errors






38. Priced too high initially - priced too low - selling price of competitors






39. Evaluates the managament of capital






40. Can be transformed simply and rapidly into cash






41. Strategy employed by retailers to buy and carry a predetermined number of price lines for a category of merchandise






42. The prices from lowest to highest that are carried within a merchandise category






43. Cost Price/ (100%-markup %)






44. Total Markup on all goods on hand/ retail price of all goods on hand






45. 1. Determine merchandise available for sale at both cost and retail prices. 2.Calculate the cost to retail complement or percentage relationship of the cost of merchandise to the selling price. 3. Subtract markdowns taken during the period. 4. Determ






46. Dollar markup ($)/ retail price ($)






47. Price change that results in reestablishing the original retail price to merchandise after it was temporarily marked down






48. First price or Manufacturers suggestet Retal Price (MSRP)






49. Cost + Markup






50. Financial debts incurred by a retailer