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. Cost + Markup






2. 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.






3. Original Retail price- markdown selling price






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






5. 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.






6. Revenues received by a retailer






7. Current Liabilites/ Net Worth






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






9. Net Profit After Taxes/ Total Assets






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






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






12. Total Assets/ Net Worth






13. Short time - like 1 or 2 day sales






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






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






16. Sales less cost of goods sold






17. 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






18. What the retailer owns in monetary value






19. 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






20. Net dollar markdown/ net dollar selling price






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






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






23. 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.






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






25. Price Lining - price zones - price ranges






26. Total Expenses/ Net Sales






27. Costs involved in running the business






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






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






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






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






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






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






34. Net Profit/ Net Sales






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






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






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






38. Evaluates the managament of capital






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






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






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






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






43. 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.






44. Current Assets/ Current Liabilities






45. Price is changed (up or down)






46. (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%






47. 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






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






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






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