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






2. 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.






3. 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.






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






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






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






7. Short time - like 1 or 2 day sales






8. 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






9. Net Profit After Taxes/ Net Worth






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






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






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






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






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






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






16. Current Assets/ Current Liabilities






17. Net Profit/ Net Sales






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






19. 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






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






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






22. Price is changed (up or down)






23. Represents the total dollar markdown as a percentage of total dollar net sales. This is typically not for an individual item.






24. Price Lining - price zones - price ranges






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






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






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






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






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






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






31. The weather - merchandise is shopworn - economic downturn






32. 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.






33. Original Retail price- markdown selling price






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






35. Cost + Markup






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






37. 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






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






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






40. 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






41. Financial debts incurred by a retailer






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






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






44. 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.






45. Evaluates the managament of capital






46. Total Expenses/ Net Sales






47. 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






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






49. 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






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







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