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. Cash Received by the retailer-cash leaving the retailer






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






3. 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.






4. One that is just enough to move the goods






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






6. Current Assets/ Current Liabilities






7. 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






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






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






10. Indicates gross margin derived from the sales of merchandise and it's ability to cover operating expenses. Helps a retailer determine how much rent they should pay - what salary the owner should draw - and how much they should pay their associates.






11. In Cost Method. Merchandise sold during a time period is assumed to be sold in the order the merchandise was received. Merchandise on hand for the longest period of time is sold first. Therefore - the ending inventory reflects the items in stock for






12. Price Lining - price zones - price ranges






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






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






15. Net Profit After Taxes/ Total Assets






16. Buying errors - promotion errors - pricing errors - uncontrollable errors






17. Sales for the period/ average inventory






18. 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






19. Net Profit/ Net Sales






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






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






22. Current Liabilites/ Net Worth






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






24. Debts owned by a retailer that require payment over an extended period of time (Fixtures - equipment - and property)






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






26. Cost + Markup






27. 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.






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






29. (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%






30. 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






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






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






33. Net dollar markdown/ net dollar selling price






34. Evaluates the managament of capital






35. Total Expenses/ Net Sales






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






37. 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






38. What the retailer owns in monetary value






39. 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






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






41. Can be transformed simply and rapidly into cash






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






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






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






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






46. Liabilities+ Owner's equity or net worth






47. Costs involved in running the business






48. 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






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






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