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. Short time - like 1 or 2 day sales






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






3. Net Profit After Taxes/ Net Worth






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






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






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






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






8. 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






9. Basic premise is to increase profits through more sales without an increase in inventory. Inventory is expressed in cost terms rather than cost percent - because it is related to investment dollars in gross margin - it should be expressed in cost num






10. 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






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






12. Financial debts incurred by a retailer






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






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






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






16. Current Assets/ Current Liabilities






17. Net Profit/ Net Sales






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






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






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






21. Sales less cost of goods sold






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






23. (Cash + Accounts Receivable) / Current Liabilities






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






25. Evaluates the managament of capital






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






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






28. What the retailer owns in monetary value






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






30. 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






31. 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






32. Total Expenses/ Net Sales






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






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






35. 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






36. The weather - merchandise is shopworn - economic downturn






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






38. Price Lining - price zones - price ranges






39. Costs involved in running the business






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






41. Net dollar markdown/ net dollar selling price






42. 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






43. 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.






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






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






46. 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






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






48. Price is changed (up or down)






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






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