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. 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






2. Sales for the period/ average inventory






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






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






5. 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.






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






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






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






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






10. Cost + Markup






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






12. Liabilities+ Owner's equity or net worth






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






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






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






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






17. Short time - like 1 or 2 day sales






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






19. Current Assets/ Current Liabilities






20. Original Retail price- markdown selling price






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






22. Net Profit After Taxes/ Net Worth






23. 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






24. Net Profit After Taxes/ Total Assets






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






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






27. Sales less cost of goods sold






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






29. Costs involved in running the business






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. What the retailer owns in monetary value






32. Financial debts incurred by a retailer






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






34. Price reduction for merchandise that has not lived up to buyers' expectations. Includes broken assortments of merchandise - merchandise lines that buyers no longer want to carry - shopworn goods - items that haven't sold because of an event beyond bu






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






36. Net Profit/ Net Sales






37. 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






38. 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.






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






40. 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






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






42. The weather - merchandise is shopworn - economic downturn






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






44. Current Liabilites/ Net Worth






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






46. (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%






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






48. 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






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






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