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






2. Costs involved in running the business






3. Evaluates the managament of capital






4. Net dollar markdown/ net dollar selling price






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






6. Current Assets/ Current Liabilities






7. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






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






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






11. Financial debts incurred by a retailer






12. Price Lining - price zones - price ranges






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






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






15. 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






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






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






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






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






20. 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






21. Net Profit After Taxes/ Net Worth






22. 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.






23. 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






24. The prices from lowest to highest that are carried within a merchandise category






25. 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






26. 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.






27. 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






28. What the retailer owns in monetary value






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






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






31. 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






32. Liabilities+ Owner's equity or net worth






33. Net Profit/ Net Sales






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






35. Cost + Markup






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






37. Total Expenses/ Net Sales






38. Original Retail price- markdown selling price






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






40. 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.






41. Total Assets/ Net Worth






42. (Cash + Accounts Receivable) / Current Liabilities






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






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






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






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






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






48. 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






49. 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.






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







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