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. Price Lining - price zones - price ranges






2. 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






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






4. 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






5. Can be transformed simply and rapidly into cash






6. First price or Manufacturers suggestet Retal Price (MSRP)






7. (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%






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






9. 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






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






11. Liabilities+ Owner's equity or net worth






12. Net dollar markdown/ net dollar selling price






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






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






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






16. Net Profit/ Net Sales






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






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






19. 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






20. 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.






21. Cost + Markup






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






23. Costs involved in running the business






24. Original Retail price- markdown selling price






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






26. Current Liabilites/ Net Worth






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






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






29. 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.






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






31. Revenues received by a retailer






32. Evaluates the managament of capital






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






34. Sales less cost of goods sold






35. (Cash + Accounts Receivable) / Current Liabilities






36. The weather - merchandise is shopworn - economic downturn






37. Short time - like 1 or 2 day sales






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






39. Total Assets/ Net Worth






40. 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






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






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






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






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






45. 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






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






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






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






49. 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






50. Current Assets/ Current Liabilities