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






2. 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






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






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






5. 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






6. 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.






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






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






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






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






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






12. 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






13. 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






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






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






16. 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






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






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






19. Net Profit After Taxes/ Net Worth






20. Price Lining - price zones - price ranges






21. 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






22. Total Assets/ Net Worth






23. Revenues received by a retailer






24. 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.






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






26. 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






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






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






29. Financial debts incurred by a retailer






30. Can be transformed simply and rapidly into cash






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






32. Evaluates the managament of capital






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






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






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






36. Liabilities+ Owner's equity or net worth






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






38. Price is changed (up or down)






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






40. 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.






41. Sales for the period/ average inventory






42. (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%






43. Net Profit After Taxes/ Total Assets






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






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






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






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






48. The weather - merchandise is shopworn - economic downturn






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






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