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






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






3. 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






4. Price Lining - price zones - price ranges






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






6. 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.






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






8. 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






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






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






11. 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.






12. Liabilities+ Owner's equity or net worth






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






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






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






16. Sales for the period/ average inventory






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






18. 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






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






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






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






22. (Cash + Accounts Receivable) / Current Liabilities






23. Costs involved in running the business






24. Can be transformed simply and rapidly into cash






25. 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.






26. Total Assets/ Net Worth






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






28. 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






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






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






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






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






33. Net dollar markdown/ net dollar selling price






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






35. Net Profit/ Net Sales






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






37. 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.






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






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






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






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






42. 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






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






44. Short time - like 1 or 2 day sales






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






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






47. Financial debts incurred by a retailer






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






49. Original Retail price- markdown selling price






50. One that is just enough to move the goods