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. Net dollar markdown/ net dollar selling price






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






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






4. 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






5. 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.






6. 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






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






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






9. (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%






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






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






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






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






14. Buying errors - promotion errors - pricing errors - uncontrollable errors






15. Net Profit After Taxes/ Net Worth






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






17. 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






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






19. Original Retail price- markdown selling price






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






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






22. Revenues received by a retailer






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






24. Sales for the period/ average inventory






25. 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






26. 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.






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






28. 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






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






30. 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






31. 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






32. 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






33. When fixed assets such as fixtures and equipment are continually used and therefore lose some of their monetary value (Ex: your car)






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






35. Price Lining - price zones - price ranges






36. 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.






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






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






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






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






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






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






43. 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






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






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






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






47. Current Assets/ Current Liabilities






48. Financial debts incurred by a retailer






49. Cost + Markup






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







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests