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. First price or Manufacturers suggestet Retal Price (MSRP)






2. (Cash + Accounts Receivable) / Current Liabilities






3. Liabilities+ Owner's equity or net worth






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






5. What the retailer owns in monetary value






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






7. Total Assets/ Net Worth






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






9. The weather - merchandise is shopworn - economic downturn






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






11. 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.






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






13. Cost + Markup






14. Price Lining - price zones - price ranges






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






16. 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.






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






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






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






20. Net dollar markdown/ net dollar selling price






21. Original Retail price- markdown selling price






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






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






24. Net Profit After Taxes/ Total Assets






25. Financial debts incurred by a retailer






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






27. Gross margin less operating expenses=NP before taxes. Deducting taxes=NP after taxes






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






29. Basic premise is to increase profits through more sales without an increase in inventory. Inventory is expressed in cost terms rather than cost percent - because it is related to investment dollars in gross margin - it should be expressed in cost num






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






31. Short time - like 1 or 2 day sales






32. Price is changed (up or down)






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






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






35. 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.






36. 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






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






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






39. 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.






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






41. 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.






42. Costs involved in running the business






43. 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






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






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






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






47. Net Profit/ Net Sales






48. Buying errors - promotion errors - pricing errors - uncontrollable errors






49. Revenues received by a retailer






50. Net Profit After Taxes/ Net Worth