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






2. Revenues received by a retailer






3. 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






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






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






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






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






8. Net Profit After Taxes/ Total Assets






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






10. 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






11. Liabilities+ Owner's equity or net worth






12. Original Retail price- markdown selling price






13. Price Lining - price zones - price ranges






14. Financial debts incurred by a retailer






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






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






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






18. 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.






19. 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






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






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






22. 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






23. 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






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






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






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






27. 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.






28. Short time - like 1 or 2 day sales






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. Evaluates the managament of capital






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






32. Net dollar markdown/ net dollar selling price






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






34. 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






35. Can be transformed simply and rapidly into cash






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






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






38. Gross margin less operating expenses=NP before taxes. Deducting taxes=NP after taxes






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






40. Net Profit/ Net Sales






41. Sales less cost of goods sold






42. Total Expenses/ Net Sales






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






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






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






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






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)






48. 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






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






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