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. 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.






2. Can be transformed simply and rapidly into cash






3. 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






4. Total Assets/ Net Worth






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






6. 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.






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






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






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






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






11. Net Profit After Taxes/ Net Worth






12. 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.






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






14. 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.






15. Reduction in price of an item - if that item is sold - the result is a lower monetary intake for that item






16. 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






17. 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






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






19. Costs involved in running the business






20. Sales less cost of goods sold






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






22. Price Lining - price zones - price ranges






23. Sales for the period/ average inventory






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






25. Current Assets/ Current Liabilities






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






27. Liabilities+ Owner's equity or net worth






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






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






30. Original Retail price- markdown selling price






31. Financial debts incurred by a retailer






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






33. Net Profit After Taxes/ Total Assets






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






35. What the retailer owns in monetary value






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






37. 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






38. (Cash + Accounts Receivable) / Current Liabilities






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






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






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






42. Current Liabilites/ Net Worth






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






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






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






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






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






48. One that is just enough to move the goods






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






50. (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%







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests