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 number of items remaining in stock x dollar markdown






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






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






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






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






6. 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






7. Can be transformed simply and rapidly into cash






8. Net dollar markdown/ net dollar selling price






9. Costs involved in running the business






10. Current Liabilites/ Net Worth






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






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






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






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






15. Inventory Valuation Method that combines taking inventory at retail prices and adjusting the cost value to reflect current retail value. 5 Steps Involved.






16. 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






17. Financial debts incurred by a retailer






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






19. 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.






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






21. 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.






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






23. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






25. Revenues received by a retailer






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






27. (Cash + Accounts Receivable) / Current Liabilities






28. Sales less cost of goods sold






29. 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.






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






32. What the retailer owns in monetary value






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






34. Total Assets/ Net Worth






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






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






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






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






39. Cost + Markup






40. 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






41. (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%






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






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






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






45. Net Profit After Taxes/ Net Worth






46. Price Lining - price zones - price ranges






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. The weather - merchandise is shopworn - economic downturn






49. Short time - like 1 or 2 day sales






50. 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