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. 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






2. Net Profit After Taxes/ Net Worth






3. Financial debts incurred by a retailer






4. The weather - merchandise is shopworn - economic downturn






5. Price Lining - price zones - price ranges






6. Net dollar markdown/ net dollar selling price






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






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






9. Sales less cost of goods sold






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






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






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






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






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






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






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






17. When fixed assets such as fixtures and equipment are continually used and therefore lose some of their monetary value (Ex: your car)






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






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






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






21. 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.






22. 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.






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






24. Current Assets/ Current Liabilities






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






26. Revenues received by a retailer






27. Total Expenses/ Net Sales






28. 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






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






30. 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.






31. 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






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






33. What the retailer owns in monetary value






34. 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.






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






36. Net Profit After Taxes/ Total Assets






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






38. 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






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






40. 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.






41. Total Assets/ Net Worth






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






43. Can be transformed simply and rapidly into cash






44. Price is changed (up or down)






45. (Cash + Accounts Receivable) / Current Liabilities






46. Short time - like 1 or 2 day sales






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






48. 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






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






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