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






2. (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%






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






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






5. Financial debts incurred by a retailer






6. Price is changed (up or down)






7. Can be transformed simply and rapidly into cash






8. 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






9. Current Liabilites/ Net Worth






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






11. What the retailer owns in monetary value






12. 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.






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






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






15. 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






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






17. Cost + Markup






18. One that is just enough to move the goods






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






20. Short time - like 1 or 2 day sales






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






22. 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






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






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






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






26. 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






27. 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.






28. Sales less cost of goods sold






29. 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.






30. Evaluates the managament of capital






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






32. Liabilities+ Owner's equity or net worth






33. Usually lower than original - but held for longer period






34. Costs involved in running the business






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






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






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






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






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






40. Total Expenses/ Net Sales






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






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






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






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






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






46. The weather - merchandise is shopworn - economic downturn






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






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






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






50. Sales for the period/ average inventory