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. Improper displays - merchandise returns due to high pressure selling






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






3. In the Cost Method. Merchandise most recently purchased is assumed to have been sold first. Therefore - the ending inventory reflects the items in stock for the longest period of time. Produces lowest ending inventory value and highest cost of goods






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






5. Short time - like 1 or 2 day sales






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






7. Can be transformed simply and rapidly into cash






8. 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.






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






10. 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.






11. Net Profit After Taxes/ Net Worth






12. Sales less cost of goods sold






13. Total Expenses/ Net Sales






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






15. Sales for the period/ average inventory






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






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






18. 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






19. 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






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






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






22. One that is just enough to move the goods






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






24. 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






25. Net dollar markdown/ net dollar selling price






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






27. The weather - merchandise is shopworn - economic downturn






28. 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.






29. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






31. Price Lining - price zones - price ranges






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






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






34. What the retailer owns in monetary value






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






36. (Cash + Accounts Receivable) / Current Liabilities






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






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






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






40. Current Assets/ Current Liabilities






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






42. Basic premise is to increase profits through more sales without an increase in inventory. Inventory is expressed in cost terms rather than cost percent - because it is related to investment dollars in gross margin - it should be expressed in cost num






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






44. Original Retail price- markdown selling price






45. Revenues received by a retailer






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






47. 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






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






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






50. Net Profit/ Net Sales