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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. Revenues received by a retailer






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






3. Cost + Markup






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






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






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






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






8. One that is just enough to move the goods






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






10. What the retailer owns in monetary value






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






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






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






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






15. Sales less cost of goods sold






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






17. Short time - like 1 or 2 day sales






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






19. Net Profit After Taxes/ Total Assets






20. Evaluates the managament of capital






21. Current Liabilites/ Net Worth






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






23. (Cash + Accounts Receivable) / Current Liabilities






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






25. Price Lining - price zones - price ranges






26. Costs involved in running the business






27. 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






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






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






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






31. 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






32. 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.






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






34. Net Profit/ Net Sales






35. Financial debts incurred by a retailer






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






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






38. 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.






39. Sales for the period/ average inventory






40. Total Assets/ Net Worth






41. 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






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






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






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






45. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






47. 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.






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






49. 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






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







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