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






2. Net Profit After Taxes/ Total Assets






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






4. Total Expenses/ Net Sales






5. 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






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






7. Liabilities+ Owner's equity or net worth






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






9. What the retailer owns in monetary value






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






11. Net Profit/ Net Sales






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






13. Short time - like 1 or 2 day sales






14. Sales less cost of goods sold






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






16. Total Assets/ Net Worth






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






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






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






20. Sales for the period/ average inventory






21. Can be transformed simply and rapidly into cash






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






23. Price Lining - price zones - price ranges






24. Net dollar markdown/ net dollar selling price






25. Current Liabilites/ Net Worth






26. Cost + Markup






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






28. The weather - merchandise is shopworn - economic downturn






29. 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






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






31. Buying errors - promotion errors - pricing errors - uncontrollable errors






32. 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






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






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






35. (Cash + Accounts Receivable) / Current Liabilities






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






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






38. Price is changed (up or down)






39. 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






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






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






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






43. 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.






44. 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






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






46. (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%






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






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






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






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