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






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






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






4. First price or Manufacturers suggestet Retal Price (MSRP)






5. Original Retail price- markdown selling price






6. Cost + Markup






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






8. Total Expenses/ Net Sales






9. 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






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






11. Price Lining - price zones - price ranges






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






13. What the retailer owns in monetary value






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






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






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






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






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






19. Buying errors - promotion errors - pricing errors - uncontrollable errors






20. (Cash + Accounts Receivable) / Current Liabilities






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






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






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






24. Short time - like 1 or 2 day sales






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






26. One that is just enough to move the goods






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






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






29. 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.






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






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






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






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






34. Costs involved in running the business






35. 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






36. Revenues received by a retailer






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. The retailers financial condition at a specific point in time






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






40. Price is changed (up or down)






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






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






43. 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






44. 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.






45. 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






46. Evaluates the managament of capital






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






48. 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






49. Financial debts incurred by a retailer






50. Can be transformed simply and rapidly into cash