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 markup ($)/ cost price ($)






2. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






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






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






6. 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






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






8. Total Assets/ Net Worth






9. Short time - like 1 or 2 day sales






10. Sales less cost of goods sold






11. 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






12. One that is just enough to move the goods






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






14. What the retailer owns in monetary value






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






16. Can be transformed simply and rapidly into cash






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






18. Sales for the period/ average inventory






19. Cost + Markup






20. Current Assets/ Current Liabilities






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






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






23. (Cash + Accounts Receivable) / Current Liabilities






24. 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.






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






26. 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






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






28. Price Lining - price zones - price ranges






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






30. Price is changed (up or down)






31. (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%






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






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






34. 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.






35. 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.






36. 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






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






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






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






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






41. Costs involved in running the business






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






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






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






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






46. Evaluates the managament of capital






47. Financial debts incurred by a retailer






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






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






50. 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