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






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. 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.






4. 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.






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






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






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






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






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






10. Original Retail price- markdown selling price






11. 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






12. 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.






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






14. Short time - like 1 or 2 day sales






15. Net Profit After Taxes/ Net Worth






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






17. Cost + Markup






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






19. Also referred to as the income or operating statement. 5 Basic Elements: Net Sales - Cost of Goods sold - Gross Margin - Operating Expenses - Net profit






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






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






22. Total Expenses/ Net Sales






23. 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






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






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






26. Total Assets/ Net Worth






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






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






29. Evaluates the managament of capital






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






31. One that is just enough to move the goods






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






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






34. Costs involved in running the business






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






36. Net Profit After Taxes/ Total Assets






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






38. The weather - merchandise is shopworn - economic downturn






39. 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






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






41. 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






42. 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






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






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






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






46. (Cash + Accounts Receivable) / Current Liabilities






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






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






49. 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






50. Current Liabilites/ Net Worth