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. The energizing force that fuels and sustains our economic system






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






3. Examines the financial health of a retailer - as one of the best indicators of having too much debt in relationship to net worth. Comparres the money that vendors or banks are risking with the money that the retail owners have invested in their opera






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






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






6. Original Retail price- markdown selling price






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






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






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






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






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






12. 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






13. 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






14. 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.






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






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






17. Total Expenses/ Net Sales






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






19. Price is changed (up or down)






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






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






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






23. Short time - like 1 or 2 day sales






24. 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






25. Total Assets/ Net Worth






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






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






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






29. Liabilities+ Owner's equity or net worth






30. Financial debts incurred by a retailer






31. Current Assets/ Current Liabilities






32. 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






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






34. 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






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






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






37. Evaluates the managament of capital






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






39. Cost + Markup






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






41. One that is just enough to move the goods






42. Current Liabilites/ Net Worth






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






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






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






46. 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






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






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






49. 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.






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