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 number of items remaining in stock x dollar markdown






2. Sales less cost of goods sold






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






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






5. Liabilities+ Owner's equity or net worth






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






7. Sales for the period/ average inventory






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






9. Net Profit After Taxes/ Net Worth






10. 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






11. Net Profit/ Net Sales






12. 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






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






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






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






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






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






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






19. Current Liabilites/ Net Worth






20. Price Lining - price zones - price ranges






21. Original Retail price- markdown selling price






22. Revenues received by a retailer






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






24. (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%






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






26. 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






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






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






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






30. 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






31. 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






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






33. 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.






34. 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






35. 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






36. Can be transformed simply and rapidly into cash






37. 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.






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






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






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






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






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






43. 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






44. (Cash + Accounts Receivable) / Current Liabilities






45. Evaluates the managament of capital






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






47. One that is just enough to move the goods






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






49. Total Assets/ Net Worth






50. Financial debts incurred by a retailer