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. Can be transformed simply and rapidly into cash






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






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






4. Financial debts incurred by a retailer






5. Liabilities+ Owner's equity or net worth






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






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






8. 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.






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






10. 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.






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






12. Original Retail price- markdown selling price






13. Current Liabilites/ Net Worth






14. 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.






15. 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






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






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






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






19. Revenues received by a retailer






20. Costs involved in running the business






21. 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






22. 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






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






24. Short time - like 1 or 2 day sales






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






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






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






28. Net Profit/ Net Sales






29. The weather - merchandise is shopworn - economic downturn






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






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






32. Total Expenses/ Net Sales






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






34. Current Assets/ Current Liabilities






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






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






37. Price Lining - price zones - price ranges






38. What the retailer owns in monetary value






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






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






41. 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.






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






43. Net dollar markdown/ net dollar selling price






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






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






46. 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






47. 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






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






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






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