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. Total Expenses/ Net Sales






2. (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%






3. Revenues received by a retailer






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






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






6. 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.






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






9. 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.






10. Based on a calculation commonly represented as a percentage - comparing the amount of inventory a retailer receives from a manufacturer or supplier against what is actually sold to the consumer






11. Current Assets/ Current Liabilities






12. Buying errors - promotion errors - pricing errors - uncontrollable errors






13. 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.






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






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






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






17. 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






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






19. Net Profit After Taxes/ Net Worth






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. Cash Received by the retailer-cash leaving the retailer






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






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






24. Net Profit After Taxes/ Total Assets






25. Price Lining - price zones - price ranges






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






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






28. Sales for the period/ average inventory






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






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






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






32. One that is just enough to move the goods






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






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






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






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






37. What the retailer owns in monetary value






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






39. Current Liabilites/ Net Worth






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






41. 1. Determine merchandise available for sale at both cost and retail prices. 2.Calculate the cost to retail complement or percentage relationship of the cost of merchandise to the selling price. 3. Subtract markdowns taken during the period. 4. Determ






42. Original Retail price- markdown selling price






43. Net dollar markdown/ net dollar selling price






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






45. Also referred to as the income or operating statement. 5 Basic Elements: Net Sales - Cost of Goods sold - Gross Margin - Operating Expenses - Net profit






46. Evaluates the managament of capital






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






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






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






50. Net Profit/ Net Sales