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. Revenues received by a retailer






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






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






4. Financial debts incurred by a retailer






5. 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






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






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






8. 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






9. Original Retail price- markdown selling price






10. 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






11. All of the capital used in operating the store - whether provided by the owners or creditors (vendors - banks)






12. (Cash + Accounts Receivable) / Current Liabilities






13. Net dollar markdown/ net dollar selling price






14. 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






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






16. Total Assets/ Net Worth






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






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






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






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






21. 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






22. Reduction in price of an item - if that item is sold - the result is a lower monetary intake for that item






23. Examines the financial health of a retailer - as one of the best indicators of having too much debt in relationship to net worth. Comparres the money that vendors or banks are risking with the money that the retail owners have invested in their opera






24. 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.






25. 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.






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






27. Sales less cost of goods sold






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






29. Cost + Markup






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






31. 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.






32. Current Liabilites/ Net Worth






33. Costs involved in running the business






34. Sales for the period/ average inventory






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






36. 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.






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






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






39. 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






40. Current Assets/ Current Liabilities






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






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






43. Net Profit After Taxes/ Net Worth






44. 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






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






46. 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






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






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






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






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