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






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






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






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






5. Buying errors - promotion errors - pricing errors - uncontrollable errors






6. Total Assets/ Net Worth






7. Net Profit After Taxes/ Total Assets






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






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






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






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






12. 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






13. Evaluates the managament of capital






14. 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






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






16. Short time - like 1 or 2 day sales






17. (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%






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






19. 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






20. The weather - merchandise is shopworn - economic downturn






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






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






23. What the retailer owns in monetary value






24. Revenues received by a retailer






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






26. 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.






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






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






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






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






31. 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






32. 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.






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






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






35. Price Lining - price zones - price ranges






36. Sales less cost of goods sold






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






38. Original Retail price- markdown selling price






39. 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.






40. (Cash + Accounts Receivable) / Current Liabilities






41. Net dollar markdown/ net dollar selling price






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






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






44. 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






45. 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






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






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






48. Net Profit/ Net Sales






49. 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






50. Can be transformed simply and rapidly into cash