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. Net dollar markdown/ net dollar selling price






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






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






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






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






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






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






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






9. 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






10. 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.






11. Total Assets/ Net Worth






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






13. Price is changed (up or down)






14. Financial debts incurred by a retailer






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






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






18. Net Profit/ Net Sales






19. 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.






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






21. Represents the total dollar markdown as a percentage of total dollar net sales. This is typically not for an individual item.






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






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






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. Sales for the period/ average inventory






26. 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.






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






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






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






30. Cost + Markup






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






32. Net Profit After Taxes/ Total Assets






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






34. Price Lining - price zones - price ranges






35. The weather - merchandise is shopworn - economic downturn






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






37. 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






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






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






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






41. (Cash + Accounts Receivable) / Current Liabilities






42. 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






43. What the retailer owns in monetary value






44. 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






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






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






47. 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






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






49. Liabilities+ Owner's equity or net worth






50. Current Liabilites/ Net Worth