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. (Cash + Accounts Receivable) / Current Liabilities






2. Short time - like 1 or 2 day sales






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






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






5. Temporary price reduction for a specific period of time for the express purpose of generating store traffic and sales. Prices return to original retail price at end of sale period.






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






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






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






9. 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






10. Price is changed (up or down)






11. Costs involved in running the business






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






13. Net Profit After Taxes/ Net Worth






14. Financial debts incurred by a retailer






15. What the retailer owns in monetary value






16. The weather - merchandise is shopworn - economic downturn






17. Cost + Markup






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






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






20. 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.






21. Price Lining - price zones - price ranges






22. Net dollar markdown/ net dollar selling price






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






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. Can be transformed simply and rapidly into cash






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






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






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






29. Sales less cost of goods sold






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






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






32. Net Profit After Taxes/ Total Assets






33. Current Liabilites/ Net Worth






34. Evaluates the managament of capital






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






36. 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






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






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






39. 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






40. 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






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






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






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






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






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






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






47. Total Expenses/ Net Sales






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






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. Current Assets/ Current Liabilities