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






2. Sales less cost of goods sold






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






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






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






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






7. 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






8. (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%






9. 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.






10. Net Profit After Taxes/ Net Worth






11. (Cash + Accounts Receivable) / Current Liabilities






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






13. Revenues received by a retailer






14. Total Expenses/ Net Sales






15. Current Assets/ Current Liabilities






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






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






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






19. Net dollar markdown/ net dollar selling price






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






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






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. Current Liabilites/ Net Worth






24. 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






25. What the retailer owns in monetary value






26. 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.






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






28. One that is just enough to move the goods






29. 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






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






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. Original Retail price- markdown selling price






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






34. 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






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






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






37. 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






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






39. Cost + Markup






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






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






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






43. Net Profit After Taxes/ Total Assets






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






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






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






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






48. Can be transformed simply and rapidly into cash






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






50. Short time - like 1 or 2 day sales