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






2. Net Profit After Taxes/ Total Assets






3. 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






4. Liabilities+ Owner's equity or net worth






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






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






7. Total Expenses/ Net Sales






8. Financial debts incurred by a retailer






9. 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.






10. Current Liabilites/ Net Worth






11. Can be transformed simply and rapidly into cash






12. Net Profit/ Net Sales






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






14. 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






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






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






17. Net dollar markdown/ net dollar selling price






18. 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






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






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






21. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






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






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






25. Evaluates the managament of capital






26. Sales less cost of goods sold






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






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






29. 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






30. 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.






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






32. Sales for the period/ average inventory






33. 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.






34. 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






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






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






37. Cost + Markup






38. The weather - merchandise is shopworn - economic downturn






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






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






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






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






43. Short time - like 1 or 2 day sales






44. 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






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






46. 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






47. 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






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






49. Costs involved in running the business






50. Price is changed (up or down)