SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Retail Financials
Start Test
Study First
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. Ranges of prices that appeals for a particular group of consumers
Return on Assets (ROA) Formul
Financial Leverage Ratio Formula
Pricing Strategies: Price Zones
Current Liabilities
2. The difference between the total delivered cost and the total retail price of merchandise handled during a given period.
Ideal Markdown
New Price
Regular Price
Cumulative Markup
3. Cost + Markup
Selling Price Formula
Markdown Percentage
Original Price
Markup
4. 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
Adage of Profitability for Retailers
LIFO (last in - first out)
Debt Equity Ratio
Pricing Strategies: Price Zones
5. Costs involved in running the business
Profit and Loss Statement (P&L Statement)
Net Sales
Markdown Cancellation ($) Formula
Operating Expenses
6. The weather - merchandise is shopworn - economic downturn
Balance Sheet
Acid Test or Quick Ratio (QR) Formula
Promotion Errors
Uncontrollable Errors
7. The cost of merchandise that was sold (including the method that was used to determine cost)
Early Markdowns
FIFO (First in - First out)
Pricing Strategies
Cost of Goods Sold
8. Price is changed (up or down)
Retail Price Formula
New Price
Sell-Through Rate
Current Assets
9. Net Profit After Taxes/ Net Worth
Inventory
Markdown Percentage
Return on Net Worth (RONW) Formula
Financial Leverage Ratio
10. Represents the total dollar markdown as a percentage of total dollar net sales. This is typically not for an individual item.
Regular Price
Markdown Percentage
Current Liabilities
Return on Sales
11. (1) Response of consumers and (2) cost of receiving - handling - and placing merchandise for sale.
Assets Formula
Current Ratio (CR) Formula
Pricing Depends on 2 factors
Return on Assets
12. (gross margin % x Turnover) / (100%-markup %)
Gross Margin Return on Inventory Investment-GMROI Formula
Current Liabilities
Promotion Errors
Markdown Percentage Formula
13. 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
LIFO (last in - first out)
Adage of Profitability for Retailers
Gross Margin
Profit Margin Analysis Formula
14. Cannot be readily converted to cash within one year. (Fixtures - equipment - land/buildings)
Current Ratio (CR) Formula
Fixed Assets
Early Markdowns
Off-Price Markdowns
15. Net Profit After Taxes/ Total Assets
Cost Complement Formula
Financial Leverage Ratio
Return on Assets (ROA) Formul
Acid Test or Quick Ratio (QR) Formula
16. Revenues received by a retailer
Current Assets
Net Sales
Buying Errors
Markdown Percentage Formula
17. 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.
Pricing Depends on 2 factors
Pricing Strategies: Price Ranges
Markup
Cost of Goods Sold
18. Current Assets/ Current Liabilities
Promotion Errors
Current Ratio (CR) Formula
Acid Test or Quick Ratio (QR) Formula
Pricing Strategies
19. When fixed assets such as fixtures and equipment are continually used and therefore lose some of their monetary value (Ex: your car)
5 Steps of Retail Inventory Method
Depreciation
Liabilities
Profit and Loss Statement (P&L Statement)
20. Original Retail price- markdown selling price
Return on Sales
Dollar Markdown Formula
Sell-Through Rate
Markdown
21. (Cash + Accounts Receivable) / Current Liabilities
Acid Test or Quick Ratio (QR) Formula
Profit
Off-Price Markdown Percentage Formula
Balance Sheet
22. 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
GMROII (Gross Margin Return on Inventory Investment)
Expense Ratio
Markup
Markdown Cancellations
23. Dollar markup ($)/ cost price ($)
Markup % of Cost Formula
Cost of Goods Sold
Markdown Cancellation ($) Formula
FIFO (First in - First out)
24. Sales for the period/ average inventory
Depreciation
Turnover Rate Formula
Pricing Errors
Assets Formula
25. 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.
Selling Price Formula
Promotional Markdown
Promotion Errors
Profit
26. Assesses the retailers ability to realize adequate return on the money that is invested by the retail owner.
Depreciation
Loss-Leader
Return on Net Worth
Promotion Errors
27. Total Assets/ Net Worth
Current Ratio (CR) Formula
Sell-Through Rate
Loss-Leader
Financial Leverage Ratio Formula
28. When new styles or models come out every year - thus forcing the obsolescence of the previous year's model
Markdown optimization
Cash Flow Formula
Cumulative Markup % Formula
Forced Obsolescence
29. Priced too high initially - priced too low - selling price of competitors
Cost Complement Formula
Return on Net Worth
Price Sensitivity
Pricing Errors
30. Statistical forecasting tool that helps retailers to predict how apparel markdowns may affect the bottom-line business and objectives before the markdowns are implemented
Sell-Through Rate
Markdown optimization
Current Assets
LIFO (last in - first out)
31. An aggregate of the original selling price. Should cover all expenses of the store - desired profit - take into account price reductions - alteration costs.
Reasons for taking Markdowns
Markup % of Retail Formula
Initial Markup (IMU)
Liabilities
32. 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
Retail Price Formula
Profit Margin Analysis Formula
Current Ratio
The Cost Method
33. Also referred to as the income or operating statement. 5 Basic Elements: Net Sales - Cost of Goods sold - Gross Margin - Operating Expenses - Net profit
Retail Price Formula
Profit and Loss Statement (P&L Statement)
Markdown Optimization
Early Markdowns
34. (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%
Planned Initial Markup % Formula
Cumulative Markup % Formula
Early Markdowns
Depreciation
35. 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.
Turnover Rate Formula
Planned Initial Markup % Formula
Initial Markup (IMU)
Late Markdowns
36. Price change that results in reestablishing the original retail price to merchandise after it was temporarily marked down
Operating Expenses
Markup % of Cost Formula
Markdown Cancellations
Fixed Liabilities
37. All of the capital used in operating the store - whether provided by the owners or creditors (vendors - banks)
Profit and Loss Statement (P&L Statement)
Markdown
Pricing Strategies: Price Lining
Return on Assets
38. Cost Price/ (100%-markup %)
Ideal Markdown
Return on Net Worth (RONW) Formula
Retail Price Formula
Cost of Goods Sold (COGS) Formula
39. One that is just enough to move the goods
Debt Equity Ratio Formula
Ideal Markdown
The Cost Method
Markdown Percentage
40. The value of this calculation is that consumers can understand the price reduction when the retailer is promoting this merchandise.
Off-Price Markdowns
Initial Markup (IMU)
Markdown Cancellation ($) Formula
Acid Test or Quick Ratio (QR) Formula
41. Usually lower than original - but held for longer period
Depreciation
LIFO (last in - first out)
Regular Price
Markdown Percentage Formula
42. Inventory Valuation Method that combines taking inventory at retail prices and adjusting the cost value to reflect current retail value. 5 Steps Involved.
Expense Ratio
Pricing Strategies: Price Zones
Retail Inventory Method
Cost of Goods Sold
43. Total Markup on all goods on hand/ retail price of all goods on hand
Acid test or Quick Ratio
Cumulative Markup % Formula
Initial Markup (IMU)
Operating Expenses
44. Strategy employed by retailers to buy and carry a predetermined number of price lines for a category of merchandise
Cost of Goods Sold
Pricing Strategies: Price Lining
Assets Formula
Loss-Leader
45. Short time - like 1 or 2 day sales
Markdown Cancellation ($) Formula
Temporary Price Reduction
Cash Flow Formula
Markdown Percentage
46. Financial obligations that require payment within a short period of time (Wages - utitilites - Insurance)
Original Price
Sell-Through Rate
Current Liabilities
Depreciation
47. The extent to which a retailer is using debt or borrowed funds to operate the business. (The higher the FLR the higher the debt)
Cumulative Markup
Depreciation
Current Ratio (CR) Formula
Financial Leverage Ratio
48. Having the right merchandise - at the right time - for the right price - in the right place
Acid Test or Quick Ratio (QR) Formula
Markdown optimization
Adage of Profitability for Retailers
Return on Sales
49. 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
Acid test or Quick Ratio
Early Markdowns
Return on Assets (ROA) Formul
Retail Inventory Method
50. Beggining inventory for a time period+ purchases=merchandise available for sale- ending inventory
Return on Net Worth (RONW) Formula
Expense Ratio
Cost of Goods Sold (COGS) Formula
Net Profit
Can you answer 50 questions in 15 minutes?
Let me suggest you:
Browse all subjects
Browse all tests
Most popular tests
Major Subjects
Tests & Exams
AP
CLEP
DSST
GRE
SAT
GMAT
Certifications
CISSP go to https://www.isc2.org/
PMP
ITIL
RHCE
MCTS
More...
IT Skills
Android Programming
Data Modeling
Objective C Programming
Basic Python Programming
Adobe Illustrator
More...
Business Skills
Advertising Techniques
Business Accounting Basics
Business Strategy
Human Resource Management
Marketing Basics
More...
Soft Skills
Body Language
People Skills
Public Speaking
Persuasion
Job Hunting And Resumes
More...
Vocabulary
GRE Vocab
SAT Vocab
TOEFL Essential Vocab
Basic English Words For All
Global Words You Should Know
Business English
More...
Languages
AP German Vocab
AP Latin Vocab
SAT Subject Test: French
Italian Survival
Norwegian Survival
More...
Engineering
Audio Engineering
Computer Science Engineering
Aerospace Engineering
Chemical Engineering
Structural Engineering
More...
Health Sciences
Basic Nursing Skills
Health Science Language Fundamentals
Veterinary Technology Medical Language
Cardiology
Clinical Surgery
More...
English
Grammar Fundamentals
Literary And Rhetorical Vocab
Elements Of Style Vocab
Introduction To English Major
Complete Advanced Sentences
Literature
Homonyms
More...
Math
Algebra Formulas
Basic Arithmetic: Measurements
Metric Conversions
Geometric Properties
Important Math Facts
Number Sense Vocab
Business Math
More...
Other Major Subjects
Science
Economics
History
Law
Performing-arts
Cooking
Logic & Reasoning
Trivia
Browse all subjects
Browse all tests
Most popular tests