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. Original Retail price- markdown selling price






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






3. 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.






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






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






6. Sales for the period/ average inventory






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






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






9. Cannot be readily converted to cash within one year. (Fixtures - equipment - land/buildings)






10. 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






11. 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.






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






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






14. 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






15. One that is just enough to move the goods






16. 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.






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






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






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






20. 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






21. Price Lining - price zones - price ranges






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






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






24. What the retailer owns in monetary value






25. Net Profit After Taxes/ Total Assets






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






27. Price is changed (up or down)






28. 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






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






30. Revenues received by a retailer






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






32. 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






33. Costs involved in running the business






34. Liabilities+ Owner's equity or net worth






35. Short time - like 1 or 2 day sales






36. Current Assets/ Current Liabilities






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






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






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






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






41. 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.






42. (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%






43. Net Profit After Taxes/ Net Worth






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






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






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






47. Net Profit/ Net Sales






48. Total Assets/ Net Worth






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






50. 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