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. Evaluates the managament of capital






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






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






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






5. 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






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






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






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






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






10. One that is just enough to move the goods






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






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






13. 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






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






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






16. 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.






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






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






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. 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






21. Cost + Markup






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






23. Costs involved in running the business






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






25. Current Liabilites/ Net Worth






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






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






28. Can be transformed simply and rapidly into cash






29. Net Profit After Taxes/ Total Assets






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






31. Sales less cost of goods sold






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






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






34. Total Expenses/ Net Sales






35. 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






36. 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






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






38. 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






39. 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






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






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






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






43. Net dollar markdown/ net dollar selling price






44. 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.






45. 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.






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






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






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






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






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