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. 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.






2. Sales less cost of goods sold






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






4. Net dollar markdown/ net dollar selling price






5. 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






6. 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.






7. 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






8. Can be transformed simply and rapidly into cash






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






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






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






12. Price Lining - price zones - price ranges






13. Net Profit After Taxes/ Net Worth






14. Net Profit After Taxes/ Total Assets






15. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






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






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






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






20. Evaluates the managament of capital






21. 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






22. Financial debts incurred by a retailer






23. Net Profit/ Net Sales






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






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






26. Short time - like 1 or 2 day sales






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






28. Current Assets/ Current Liabilities






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






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






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






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






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






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






35. 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






36. Liabilities+ Owner's equity or net worth






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






38. Revenues received by a retailer






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






40. Original Retail price- markdown selling price






41. Current Liabilites/ Net Worth






42. 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.






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






44. 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






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. (Cash + Accounts Receivable) / Current Liabilities






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






48. One that is just enough to move the goods






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






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