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. What the retailer owns in monetary value






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






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






4. Sales less cost of goods sold






5. 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.






6. One that is just enough to move the goods






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






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






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






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






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






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






13. Total Assets/ Net Worth






14. Evaluates the managament of capital






15. Net dollar markdown/ net dollar selling price






16. 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.






17. Liabilities+ Owner's equity or net worth






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






19. Financial debts incurred by a retailer






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






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






22. 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






23. Net Profit/ Net Sales






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






25. Costs involved in running the business






26. Price Lining - price zones - price ranges






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






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






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






30. 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.






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






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






33. 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






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






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






36. The weather - merchandise is shopworn - economic downturn






37. Price is changed (up or down)






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






39. 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.






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






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






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






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






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






45. Net Profit After Taxes/ Total Assets






46. Cost + Markup






47. Revenues received by a retailer






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






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






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