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






2. Net Profit/ Net Sales






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






4. Net Profit After Taxes/ Net Worth






5. 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.






6. Total Expenses/ Net Sales






7. (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%






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






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






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






11. 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






12. Costs involved in running the business






13. One that is just enough to move the goods






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






15. 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.






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






17. Cost + Markup






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






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






20. The cost of merchandise that was sold (including the method that was used to determine cost)






21. Current Liabilites/ Net Worth






22. Net Profit After Taxes/ Total Assets






23. 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






24. 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






25. Buying errors - promotion errors - pricing errors - uncontrollable errors






26. 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






27. 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.






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






29. 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.






30. 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.






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






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






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






34. Total Assets/ Net Worth






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






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






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






38. 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






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






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






41. Short time - like 1 or 2 day sales






42. 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






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






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






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






46. What the retailer owns in monetary value






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






48. Financial debts incurred by a retailer






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






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