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. 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






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






3. (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%






4. Sales for the period/ average inventory






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. 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.






7. 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






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






9. Net dollar markdown/ net dollar selling price






10. Wrong Merchandise - odd assortment colors/sizes - seasonal goods






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






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






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






14. 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






15. Total Expenses/ Net Sales






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






17. 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






18. Current Liabilites/ Net Worth






19. Revenues received by a retailer






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






21. 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






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






23. 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






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






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






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






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






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






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






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






32. Sales less cost of goods sold






33. Price is changed (up or down)






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






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






36. 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.






37. Total Assets/ Net Worth






38. Short time - like 1 or 2 day sales






39. Cost + Markup






40. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






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






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






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






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






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






47. 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






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






49. 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.






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







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