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. Cash Received by the retailer-cash leaving the retailer






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






3. 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.






4. 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.






5. (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%






6. Costs involved in running the business






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






8. Sales for the period/ average inventory






9. The difference between the total delivered cost and the total retail price of merchandise handled during a given period.






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






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






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






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






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






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






16. Total Assets/ Net Worth






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






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






19. Price is changed (up or down)






20. 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






21. Revenues received by a retailer






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






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






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






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






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






27. 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






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






29. Sales less cost of goods sold






30. Short time - like 1 or 2 day sales






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






32. Net Profit After Taxes/ Total Assets






33. Liabilities+ Owner's equity or net worth






34. Can be transformed simply and rapidly into cash






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






36. 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.






37. 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






38. One that is just enough to move the goods






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






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






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






42. 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






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






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






45. Current Liabilites/ Net Worth






46. The weather - merchandise is shopworn - economic downturn






47. 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.






48. Original Retail price- markdown selling price






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






50. Price Lining - price zones - price ranges