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. 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.






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






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






4. Current Liabilites/ Net Worth






5. Evaluates the managament of capital






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






7. Sales for the period/ average inventory






8. 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






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






10. 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.






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






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






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






14. Costs involved in running the business






15. 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






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






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






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






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






20. 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






21. 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






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






23. Cost + Markup






24. Liabilities+ Owner's equity or net worth






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






26. Revenues received by a retailer






27. Buying errors - promotion errors - pricing errors - uncontrollable errors






28. Net Profit After Taxes/ Net Worth






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






30. Price Lining - price zones - price ranges






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






32. Price is changed (up or down)






33. Total Expenses/ Net Sales






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






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






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






37. 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.






38. 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






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






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






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






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






43. Net dollar markdown/ net dollar selling price






44. Net Profit After Taxes/ Total Assets






45. (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%






46. Ensures that there is enough cash to pay debts. Any time the ratio is colse to 1 - the retailer is said to be in a liquid position.






47. What the retailer owns in monetary value






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






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






50. 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.