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. Cost + Markup






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






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






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






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






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






7. 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.






8. 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.






9. Sales less cost of goods sold






10. Price is changed (up or down)






11. Net dollar markdown/ net dollar selling price






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






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






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






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






16. Price Lining - price zones - price ranges






17. Net Profit/ Net Sales






18. Costs involved in running the business






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






20. 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.






21. Revenues received by a retailer






22. 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






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






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






25. Original Retail price- markdown selling price






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






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






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






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






30. Financial debts incurred by a retailer






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






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






33. 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.






34. 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






35. Can be transformed simply and rapidly into cash






36. 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.






37. Sales for the period/ average inventory






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






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






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






41. Current Liabilites/ Net Worth






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






43. (Cash + Accounts Receivable) / Current Liabilities






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






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






46. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






48. What the retailer owns in monetary value






49. 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.






50. Liabilities+ Owner's equity or net worth