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






2. Net Profit After Taxes/ Net Worth






3. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






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






6. Sales for the period/ average inventory






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






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






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






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






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






12. 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






13. Net dollar markdown/ net dollar selling price






14. Total Assets/ Net Worth






15. Costs involved in running the business






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






17. Sales less cost of goods sold






18. 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.






19. One that is just enough to move the goods






20. 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






21. 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.






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






23. 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






24. Net Profit/ Net Sales






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






26. 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






27. Liabilities+ Owner's equity or net worth






28. Original Retail price- markdown selling price






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






30. 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






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






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






33. Price is changed (up or down)






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






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






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






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






38. What the retailer owns in monetary value






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






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






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






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






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






45. 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






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






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






48. Short time - like 1 or 2 day sales






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






50. Current Liabilites/ Net Worth