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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. Original Retail price- markdown selling price






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






3. (Cash + Accounts Receivable) / Current Liabilities






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






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






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






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






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






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






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






11. Current Assets/ Current Liabilities






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






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






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






15. 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






16. Indicates gross margin derived from the sales of merchandise and it's ability to cover operating expenses. Helps a retailer determine how much rent they should pay - what salary the owner should draw - and how much they should pay their associates.






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






18. Cost + Markup






19. Costs involved in running the business






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






21. 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.






22. 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






23. 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






24. 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.






25. Net dollar markdown/ net dollar selling price






26. Evaluates the managament of capital






27. Total Assets/ Net Worth






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






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






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






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






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






33. Sales less cost of goods sold






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






35. Can be transformed simply and rapidly into cash






36. Buying errors - promotion errors - pricing errors - uncontrollable errors






37. 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






38. Liabilities+ Owner's equity or net worth






39. Inventory Valuation Method that combines taking inventory at retail prices and adjusting the cost value to reflect current retail value. 5 Steps Involved.






40. 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






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






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






43. 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






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






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






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






48. Price is changed (up or down)






49. 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.






50. Revenues received by a retailer







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