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






2. Gross margin less operating expenses=NP before taxes. Deducting taxes=NP after taxes






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






4. One that is just enough to move the goods






5. Basic premise is to increase profits through more sales without an increase in inventory. Inventory is expressed in cost terms rather than cost percent - because it is related to investment dollars in gross margin - it should be expressed in cost num






6. Liabilities+ Owner's equity or net worth






7. Total Assets/ Net Worth






8. 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.






9. An aggregate of the original selling price. Should cover all expenses of the store - desired profit - take into account price reductions - alteration costs.






10. Inventory Valuation Method that combines taking inventory at retail prices and adjusting the cost value to reflect current retail value. 5 Steps Involved.






11. 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.






12. Net dollar markdown/ net dollar selling price






13. Price is changed (up or down)






14. Sales for the period/ average inventory






15. Debts owned by a retailer that require payment over an extended period of time (Fixtures - equipment - and property)






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






17. Beggining inventory for a time period+ purchases=merchandise available for sale- ending inventory






18. Price reduction for merchandise that has not lived up to buyers' expectations. Includes broken assortments of merchandise - merchandise lines that buyers no longer want to carry - shopworn goods - items that haven't sold because of an event beyond bu






19. The retailers financial condition at a specific point in time






20. Cost + Markup






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






22. The number of items remaining in stock x dollar markdown






23. 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






24. Improper displays - merchandise returns due to high pressure selling






25. What the retailer owns in monetary value






26. Ranges of prices that appeals for a particular group of consumers






27. Also referred to as the income or operating statement. 5 Basic Elements: Net Sales - Cost of Goods sold - Gross Margin - Operating Expenses - Net profit






28. (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%






29. Usually lower than original - but held for longer period






30. The higher the ratio the quicker current liabilities can be paid. This ratio also indicates the margin of safety a retailer has on hand to cover possible shrinkages






31. The largest sum of money in current assets. Can be presented in either cost or retail terms. Should be purchased for a short period of time - as products lose monetary value over time and are subject to markdowns.






32. Amount of markdown usually less - take the loss early will be easier - strengthen goodwill - replenish stock in lower price lines - leads to higher stock turnover - higher likelihood merchandise will sell in a timely manner






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






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






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






36. Evaluates the managament of capital






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






38. Net Profit After Taxes/ Total Assets






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






40. Short time - like 1 or 2 day sales






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






42. Total Expenses/ Net Sales






43. 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.






44. 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






45. 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






46. When new styles or models come out every year - thus forcing the obsolescence of the previous year's model






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






48. Financial debts incurred by a retailer






49. (1) Response of consumers and (2) cost of receiving - handling - and placing merchandise for sale.






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







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests