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






2. 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






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






4. Net Profit After Taxes/ Total Assets






5. Total Expenses/ Net Sales






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






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






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






9. Net Profit/ Net Sales






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






11. 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.






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






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






14. Net Profit After Taxes/ Net Worth






15. Original Retail price- markdown selling price






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






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






18. Cost + Markup






19. 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.






20. Liabilities+ Owner's equity or net worth






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






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






23. 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






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






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






26. (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%






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






28. Short time - like 1 or 2 day sales






29. 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.






30. Buying errors - promotion errors - pricing errors - uncontrollable errors






31. Price Lining - price zones - price ranges






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






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






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. In Cost Method. Merchandise sold during a time period is assumed to be sold in the order the merchandise was received. Merchandise on hand for the longest period of time is sold first. Therefore - the ending inventory reflects the items in stock for






36. (Cash + Accounts Receivable) / Current Liabilities






37. The weather - merchandise is shopworn - economic downturn






38. Can be transformed simply and rapidly into cash






39. 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.






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






41. One that is just enough to move the goods






42. Net dollar markdown/ net dollar selling price






43. 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






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






45. Total Assets/ Net Worth






46. 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






47. 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.






48. Costs involved in running the business






49. 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






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