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. Cost Price/ (100%-markup %)






2. Liabilities+ Owner's equity or net worth






3. 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






4. 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






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






6. Sales less cost of goods sold






7. Evaluates the managament of capital






8. Costs involved in running the business






9. Short time - like 1 or 2 day sales






10. 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






11. The weather - merchandise is shopworn - economic downturn






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






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






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






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






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






17. 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






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






19. 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






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






21. 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.






22. Promotional markdown that involves selling at or near cost for promotional purposes






23. Net Profit/ Net Sales






24. Having the right merchandise - at the right time - for the right price - in the right place






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






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






27. Dollar Markdown of Merchandise/ original retail selling price of merchandise being marked down






28. Price is changed (up or down)






29. Current Liabilites/ Net Worth






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






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






32. When fixed assets such as fixtures and equipment are continually used and therefore lose some of their monetary value (Ex: your car)






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






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






35. The energizing force that fuels and sustains our economic system






36. Price Lining - price zones - price ranges






37. Sales for the period/ average inventory






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






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






40. Total Expenses/ Net Sales






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






42. The extent to which a retailer is using debt or borrowed funds to operate the business. (The higher the FLR the higher the debt)






43. The value of this calculation is that consumers can understand the price reduction when the retailer is promoting this merchandise.






44. Revenues received by a retailer






45. 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.






46. Based on a calculation commonly represented as a percentage - comparing the amount of inventory a retailer receives from a manufacturer or supplier against what is actually sold to the consumer






47. One that is just enough to move the goods






48. 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






49. Net Profit After Taxes/ Net Worth






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