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






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. Current Assets/ Current Liabilities






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






5. Total Expenses/ Net Sales






6. 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






7. Financial debts incurred by a retailer






8. Net Profit After Taxes/ Total Assets






9. Sales less cost of goods sold






10. Sales for the period/ average inventory






11. 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






12. One that is just enough to move the goods






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






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






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






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






17. 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






18. Current Liabilites/ Net Worth






19. Liabilities+ Owner's equity or net worth






20. 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






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






22. Price Lining - price zones - price ranges






23. Net Profit After Taxes/ Net Worth






24. 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






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






26. 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






27. Net Profit/ Net Sales






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






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






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






31. (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%






32. 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






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






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






35. Net dollar markdown/ net dollar selling price






36. (Cash + Accounts Receivable) / Current Liabilities






37. 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






38. 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.






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






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






41. Revenues received by a retailer






42. Short time - like 1 or 2 day sales






43. 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.






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






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






46. 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.






47. Cost + Markup






48. Can be transformed simply and rapidly into cash






49. Total Assets/ Net Worth






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