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






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






3. Buying errors - promotion errors - pricing errors - uncontrollable errors






4. Net Profit/ Net Sales






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






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






7. 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






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






9. Evaluates the managament of capital






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






11. One that is just enough to move the goods






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






13. 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






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






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






16. 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.






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






18. Total Assets/ Net Worth






19. 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






20. 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






21. Net Profit After Taxes/ Net Worth






22. 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.






23. 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.






24. To make a profit buyers must set an appropriate price considering many variables and using past experience and knowledge of future trends. A markup on an item does not typically remain constant.






25. (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%






26. Price Lining - price zones - price ranges






27. Net Profit After Taxes/ Total Assets






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






29. What the retailer owns in monetary value






30. Original Retail price- markdown selling price






31. Price is changed (up or down)






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






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






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






35. Net dollar markdown/ net dollar selling price






36. 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






37. 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






38. Revenues received by a retailer






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






40. Current Assets/ Current Liabilities






41. Costs involved in running the business






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






43. Sales for the period/ average inventory






44. Liabilities+ Owner's equity or net worth






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






46. 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






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






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






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






50. 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