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. Original Retail price- markdown selling price






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






3. 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.






4. Revenues received by a retailer






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






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






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






8. Current Liabilites/ Net Worth






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






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






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






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






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






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






15. 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.






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






17. Cost + Markup






18. Net Profit/ Net Sales






19. Price is changed (up or down)






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






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






22. 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.






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






24. Total Expenses/ Net Sales






25. Price Lining - price zones - price ranges






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






27. Financial debts incurred by a retailer






28. Can be transformed simply and rapidly into cash






29. 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






30. 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






31. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






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






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






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






36. 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.






37. (Cash + Accounts Receivable) / Current Liabilities






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






39. The weather - merchandise is shopworn - economic downturn






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






41. 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






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






43. Net dollar markdown/ net dollar selling price






44. 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.






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






46. 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






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






48. 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






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






50. One that is just enough to move the goods