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






2. 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.






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






4. The weather - merchandise is shopworn - economic downturn






5. Net Profit After Taxes/ Net Worth






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






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






8. 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.






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






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






11. Original Retail price- markdown selling price






12. Price Lining - price zones - price ranges






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. Costs involved in running the business






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






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






17. Current Assets/ Current Liabilities






18. 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






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






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






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






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






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






24. Short time - like 1 or 2 day sales






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






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






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






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






29. 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






30. 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.






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






32. Liabilities+ Owner's equity or net worth






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






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






35. Sales less cost of goods sold






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






37. 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






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






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






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






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






42. 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






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






44. Net dollar markdown/ net dollar selling price






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






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






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






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






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