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. 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.






2. 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






3. Short time - like 1 or 2 day sales






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






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






6. 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






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






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






9. Current Assets/ Current Liabilities






10. Price Lining - price zones - price ranges






11. 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






12. Costs involved in running the business






13. Can be transformed simply and rapidly into cash






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






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






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






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






18. Evaluates the managament of capital






19. Cost + Markup






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






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






22. (Cash + Accounts Receivable) / Current Liabilities






23. 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.






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. 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.






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






27. Net dollar markdown/ net dollar selling price






28. Original Retail price- markdown selling price






29. Net Profit After Taxes/ Total Assets






30. 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






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






32. Revenues received by a retailer






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






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






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






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






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






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






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






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






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






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






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






44. The weather - merchandise is shopworn - economic downturn






45. Net Profit After Taxes/ Net Worth






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






47. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






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






50. 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.







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