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Retail Financials

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. Price Lining - price zones - price ranges






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






3. Cost + Markup






4. One that is just enough to move the goods






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






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






7. Net dollar markdown/ net dollar selling price






8. 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






9. (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%






10. Revenues received by a retailer






11. Net Profit After Taxes/ Net Worth






12. 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






13. 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






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






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






16. (Cash + Accounts Receivable) / Current Liabilities






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






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






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






20. 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






21. Liabilities+ Owner's equity or net worth






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






23. Total Expenses/ Net Sales






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






25. 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






26. 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.






27. 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






28. Current Liabilites/ Net Worth






29. Financial debts incurred by a retailer






30. 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






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






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






33. Sales for the period/ average inventory






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






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






36. Original Retail price- markdown selling price






37. 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.






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






39. What the retailer owns in monetary value






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






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






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






43. 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






44. Evaluates the managament of capital






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






46. 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.






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






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






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






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







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