SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Retail Financials
Start Test
Study First
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. Cannot be readily converted to cash within one year. (Fixtures - equipment - land/buildings)
Current Assets
Fixed Assets
Current Ratio (CR) Formula
Selling Price Formula
2. The prices from lowest to highest that are carried within a merchandise category
Pricing Strategies: Price Ranges
Return on Assets
Pricing Errors
Balance Sheet
3. All of the capital used in operating the store - whether provided by the owners or creditors (vendors - banks)
Return on Assets
Current Ratio
Return on Sales
Fixed Assets
4. The energizing force that fuels and sustains our economic system
Acid Test or Quick Ratio (QR) Formula
Gross Margin Return on Inventory Investment-GMROI Formula
Profit
Original Price
5. 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
Uncontrollable Errors
5 Steps of Retail Inventory Method
Planned Initial Markup % Formula
Assets Formula
6. The number of items remaining in stock x dollar markdown
Markdown Cancellation ($) Formula
Sell-Through Rate
Financial Leverage Ratio Formula
Debt Equity Ratio
7. (Cash + Accounts Receivable) / Current Liabilities
Debt Equity Ratio Formula
Planned Initial Markup % Formula
Reasons for taking Markdowns
Acid Test or Quick Ratio (QR) Formula
8. Net Profit After Taxes/ Total Assets
Return on Sales
Current Assets
Sell-Through Rate
Return on Assets (ROA) Formul
9. The extent to which a retailer is using debt or borrowed funds to operate the business. (The higher the FLR the higher the debt)
Temporary Price Reduction
Financial Leverage Ratio
FIFO (First in - First out)
Return on Net Worth
10. Cost Price/ (100%-markup %)
5 Steps of Retail Inventory Method
Current Liabilities
Retail Price Formula
Profit Margin
11. Statistical forecasting tool that helps retailers to predict how apparel markdowns may affect the bottom-line business and objectives before the markdowns are implemented
Assets
Cumulative Markup % Formula
Markdown optimization
Adage of Profitability for Retailers
12. Can be transformed simply and rapidly into cash
Late Markdowns
Off-Price Markdowns
Markdown
Current Assets
13. Evaluates the managament of capital
Return on Sales
Price Sensitivity
Cost of Goods Sold
Early Markdowns
14. 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
Sell-Through Rate
Original Price
Current Ratio
Pricing Depends on 2 factors
15. The cost of merchandise that was sold (including the method that was used to determine cost)
Profit Margin Analysis Formula
Current Ratio
Cost of Goods Sold
Accounts Receivable (AR)
16. 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.
Sell-Through Rate
Inventory
Adage of Profitability for Retailers
Return on Net Worth
17. First price or Manufacturers suggestet Retal Price (MSRP)
Gross Margin
Pricing Strategies
Original Price
5 Steps of Retail Inventory Method
18. Buying errors - promotion errors - pricing errors - uncontrollable errors
LIFO (last in - first out)
Reasons for taking Markdowns
Fixed Liabilities
Financial Leverage Ratio Formula
19. 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.
Off-Price Markdown Percentage Formula
Acid test or Quick Ratio
Return on Net Worth (RONW) Formula
GMROII (Gross Margin Return on Inventory Investment)
20. 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
Current Ratio
Financial Leverage Ratio Formula
Return on Assets (ROA) Formul
Operating Expenses
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.
Markdown Optimization
Temporary Price Reduction
Liabilities
Sell-Through Rate
22. Inventory Valuation Method that combines taking inventory at retail prices and adjusting the cost value to reflect current retail value. 5 Steps Involved.
Retail Inventory Method
Off-Price Markdown Percentage Formula
Markup % of Cost Formula
Inventory
23. Net dollar markdown/ net dollar selling price
Fixed Assets
Markdown Percentage Formula
Pricing Strategies: Price Ranges
Return on Assets
24. 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
GMROII (Gross Margin Return on Inventory Investment)
Net Profit
Promotional Markdown
Financial Leverage Ratio
25. 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
Ideal Markdown
Net Sales
Debt Equity Ratio
Current Assets
26. 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
Planned Initial Markup % Formula
The Cost Method
Gross Margin Return on Inventory Investment-GMROI Formula
Cost Complement Formula
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
Gross Margin
Profit and Loss Statement (P&L Statement)
Current Ratio
Pricing Strategies: Price Lining
28. To make a profit buyers must set an appropriate price considering many variables and using past experience and knowledge of future trends. A markup on an item does not typically remain constant.
Expense Ratio Formula
Promotional Markdown
Markup
Financial Leverage Ratio
29. Net Profit After Taxes/ Net Worth
Operating Expenses
Financial Leverage Ratio
Return on Net Worth (RONW) Formula
GMROII (Gross Margin Return on Inventory Investment)
30. 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.
Temporary Price Reduction
Assets
Profit Margin Analysis Formula
Promotional Markdown
31. Dollar Markdown of Merchandise/ original retail selling price of merchandise being marked down
Return on Net Worth
Off-Price Markdown Percentage Formula
Markdown Percentage
Dollar Markdown Formula
32. The value of this calculation is that consumers can understand the price reduction when the retailer is promoting this merchandise.
Current Ratio
Cost Complement Formula
Pricing Errors
Off-Price Markdowns
33. Merchandise Available for sale at cost/ Merchandise available for sale at retail
Cost Complement Formula
Cumulative Markup % Formula
Expense Ratio Formula
Current Assets
34. Revenues received by a retailer
Pricing Strategies: Price Lining
Net Sales
Markdown
Markdown Cancellations
35. Strategy employed by retailers to buy and carry a predetermined number of price lines for a category of merchandise
FIFO (First in - First out)
Pricing Strategies: Price Lining
Inventory
Return on Assets (ROA) Formul
36. Sales less cost of goods sold
Promotional Markdown
Pricing Strategies: Price Lining
Gross Margin
Accounts Receivable (AR)
37. Promotional markdown that involves selling at or near cost for promotional purposes
Markdown Percentage Formula
Operating Expenses
Loss-Leader
Cumulative Markup % Formula
38. (gross margin % x Turnover) / (100%-markup %)
Gross Margin
Gross Margin Return on Inventory Investment-GMROI Formula
Markdown
Uncontrollable Errors
39. The weather - merchandise is shopworn - economic downturn
Uncontrollable Errors
Liabilities
Fixed Liabilities
Pricing Depends on 2 factors
40. Ranges of prices that appeals for a particular group of consumers
Markdown Cancellation ($) Formula
Return on Net Worth
Pricing Strategies: Price Zones
Balance Sheet
41. When new styles or models come out every year - thus forcing the obsolescence of the previous year's model
Cost of Goods Sold (COGS) Formula
Temporary Price Reduction
Forced Obsolescence
Cumulative Markup % Formula
42. Priced too high initially - priced too low - selling price of competitors
Clearance Markdowns
Off-Price Markdowns
Financial Leverage Ratio
Pricing Errors
43. Sales for the period/ average inventory
Turnover Rate Formula
Net Profit
Retail Price Formula
Promotional Markdown
44. 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
FIFO (First in - First out)
Markdown Cancellation ($) Formula
Net Profit
GMROII (Gross Margin Return on Inventory Investment)
45. Current Assets/ Current Liabilities
Current Ratio (CR) Formula
Markdown Percentage
FIFO (First in - First out)
Expense Ratio
46. Debts owned by a retailer that require payment over an extended period of time (Fixtures - equipment - and property)
Off-Price Markdowns
Fixed Liabilities
Markdown Percentage
Pricing Strategies: Price Lining
47. Current Liabilites/ Net Worth
Debt Equity Ratio Formula
Return on Assets (ROA) Formul
Gross Margin
Profit Margin
48. Price Lining - price zones - price ranges
Pricing Strategies
Profit and Loss Statement (P&L Statement)
Ideal Markdown
Inventory
49. Cash Received by the retailer-cash leaving the retailer
Return on Sales
Assets Formula
Sell-Through Rate
Cash Flow Formula
50. What the retailer owns in monetary value
Pricing Errors
Cost of Goods Sold (COGS) Formula
Gross Margin
Assets
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
Certifications
CISSP go to https://www.isc2.org/
PMP
ITIL
RHCE
MCTS
More...
IT Skills
Android Programming
Data Modeling
Objective C Programming
Basic Python Programming
Adobe Illustrator
More...
Business Skills
Advertising Techniques
Business Accounting Basics
Business Strategy
Human Resource Management
Marketing Basics
More...
Soft Skills
Body Language
People Skills
Public Speaking
Persuasion
Job Hunting And Resumes
More...
Vocabulary
GRE Vocab
SAT Vocab
TOEFL Essential Vocab
Basic English Words For All
Global Words You Should Know
Business English
More...
Languages
AP German Vocab
AP Latin Vocab
SAT Subject Test: French
Italian Survival
Norwegian Survival
More...
Engineering
Audio Engineering
Computer Science Engineering
Aerospace Engineering
Chemical Engineering
Structural Engineering
More...
Health Sciences
Basic Nursing Skills
Health Science Language Fundamentals
Veterinary Technology Medical Language
Cardiology
Clinical Surgery
More...
English
Grammar Fundamentals
Literary And Rhetorical Vocab
Elements Of Style Vocab
Introduction To English Major
Complete Advanced Sentences
Literature
Homonyms
More...
Math
Algebra Formulas
Basic Arithmetic: Measurements
Metric Conversions
Geometric Properties
Important Math Facts
Number Sense Vocab
Business Math
More...
Other Major Subjects
Science
Economics
History
Law
Performing-arts
Cooking
Logic & Reasoning
Trivia
Browse all subjects
Browse all tests
Most popular tests