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






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






3. 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






4. 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






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






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






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






8. 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






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






10. 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.






11. The weather - merchandise is shopworn - economic downturn






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






13. Buying errors - promotion errors - pricing errors - uncontrollable errors






14. Total Assets/ Net Worth






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






16. Current Assets/ Current Liabilities






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






18. Cost + Markup






19. 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






20. 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






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






22. 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.






23. Price Lining - price zones - price ranges






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






25. Financial debts incurred by a retailer






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






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






28. 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






29. Liabilities+ Owner's equity or net worth






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






31. Original Retail price- markdown selling price






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






33. 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






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






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






36. Net Profit After Taxes/ Net Worth






37. Short time - like 1 or 2 day sales






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






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






40. 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.






41. Revenues received by a retailer






42. Also referred to as the income or operating statement. 5 Basic Elements: Net Sales - Cost of Goods sold - Gross Margin - Operating Expenses - Net profit






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






44. Evaluates the managament of capital






45. 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






46. 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






47. Price is changed (up or down)






48. Can be transformed simply and rapidly into cash






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






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