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. Net dollar markdown/ net dollar selling price






3. Original Retail price- markdown selling price






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






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






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






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






8. Net Profit After Taxes/ Net Worth






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






10. Price is changed (up or down)






11. In the Cost Method. Merchandise most recently purchased is assumed to have been sold first. Therefore - the ending inventory reflects the items in stock for the longest period of time. Produces lowest ending inventory value and highest cost of goods






12. Current Liabilites/ Net Worth






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






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






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






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






17. Short time - like 1 or 2 day sales






18. Evaluates the managament of capital






19. 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.






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. The energizing force that fuels and sustains our economic system






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






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






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






25. Current Assets/ Current Liabilities






26. Total Assets/ Net Worth






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






28. Net Profit/ Net Sales






29. Sales less cost of goods sold






30. 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






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






32. (Cash + Accounts Receivable) / Current Liabilities






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






34. 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






35. Liabilities+ Owner's equity or net worth






36. Revenues received by a retailer






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






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






39. The weather - merchandise is shopworn - economic downturn






40. 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






41. Cost + Markup






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






43. Price Lining - price zones - price ranges






44. Sales for the period/ average inventory






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






46. One that is just enough to move the goods






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






48. 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






49. Net Profit After Taxes/ Total Assets






50. 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.