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. Net Profit After Taxes/ Net Worth






2. Current Liabilites/ Net Worth






3. Short time - like 1 or 2 day sales






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






5. 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.






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






7. 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






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






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






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






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






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






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






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






15. Financial debts incurred by a retailer






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






17. What the retailer owns in monetary value






18. 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






19. Net Profit After Taxes/ Total Assets






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






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






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






23. 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






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






25. 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






26. Evaluates the managament of capital






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






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






29. (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%






30. 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






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






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






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






34. Net Profit/ Net Sales






35. 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.






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






37. Sales for the period/ average inventory






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






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






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






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






42. (Cash + Accounts Receivable) / Current Liabilities






43. Sales less cost of goods sold






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






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






46. Price is changed (up or down)






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






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






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






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