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. The energizing force that fuels and sustains our economic system






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






3. (Cash + Accounts Receivable) / Current Liabilities






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






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






6. (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%






7. 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






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






9. Evaluates the managament of capital






10. Net dollar markdown/ net dollar selling price






11. Cost + Markup






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






13. Current Liabilites/ Net Worth






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






15. Net Profit After Taxes/ Total Assets






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






17. 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.






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






19. Revenues received by a retailer






20. What the retailer owns in monetary value






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






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






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






24. Liabilities+ Owner's equity or net worth






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






26. One that is just enough to move the goods






27. 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.






28. Buying errors - promotion errors - pricing errors - uncontrollable errors






29. 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






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






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






32. Net Profit/ Net Sales






33. 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.






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






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






36. Sales less cost of goods sold






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






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






39. Total Expenses/ Net Sales






40. Financial debts incurred by a retailer






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






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. Price is changed (up or down)






44. Sales for the period/ average inventory






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. Short time - like 1 or 2 day sales






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






48. 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.






49. 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






50. Net Profit After Taxes/ Net Worth