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






2. Revenues received by a retailer






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. Short time - like 1 or 2 day sales






5. The weather - merchandise is shopworn - economic downturn






6. (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%






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






8. Financial debts incurred by a retailer






9. Price Lining - price zones - price ranges






10. Total Expenses/ Net Sales






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






12. Total Assets/ Net Worth






13. Price is changed (up or down)






14. Evaluates the managament of capital






15. 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.






16. Cost + Markup






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






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






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






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






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






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






23. 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






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






25. 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.






26. (Cash + Accounts Receivable) / Current Liabilities






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






28. Net Profit/ Net Sales






29. Buying errors - promotion errors - pricing errors - uncontrollable errors






30. All of the capital used in operating the store - whether provided by the owners or creditors (vendors - banks)






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






32. 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






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






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






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






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






37. 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






38. 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






39. 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






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






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






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






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






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






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






46. 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






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






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






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






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