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. Costs involved in running the business






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






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






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






5. 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.






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






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






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






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






10. Evaluates the managament of capital






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






12. 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






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






14. Original Retail price- markdown selling price






15. Total Expenses/ Net Sales






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






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






18. Price is changed (up or down)






19. 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






20. One that is just enough to move the goods






21. 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






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






23. 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






24. 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.






25. Can be transformed simply and rapidly into cash






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






27. The extent to which a retailer is using debt or borrowed funds to operate the business. (The higher the FLR the higher the debt)






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






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






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






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






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






33. Short time - like 1 or 2 day sales






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






35. What the retailer owns in monetary value






36. Financial debts incurred by a retailer






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






38. Cost + Markup






39. Sales less cost of goods sold






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






41. Price Lining - price zones - price ranges






42. Net Profit After Taxes/ Net Worth






43. 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






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






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






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






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






48. 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.






49. Current Assets/ Current Liabilities






50. 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