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. 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






2. Original Retail price- markdown selling price






3. 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






4. 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.






5. What the retailer owns in monetary value






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






7. 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.






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






9. Total Expenses/ Net Sales






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






11. 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






12. Net Profit After Taxes/ Total Assets






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






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






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






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






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






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






19. 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.






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






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






22. 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.






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






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






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






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






27. 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.






28. 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






29. The weather - merchandise is shopworn - economic downturn






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






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






32. Current Assets/ Current Liabilities






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






34. In the Cost Method. Merchandise most recently purchased is assumed to have been sold first. Therefore - the ending inventory reflects the items in stock for the longest period of time. Produces lowest ending inventory value and highest cost of goods






35. Sales less cost of goods sold






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






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






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






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






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






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






43. 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






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






45. 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






46. Net Profit/ Net Sales






47. Current Liabilites/ Net Worth






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






49. Revenues received by a retailer






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







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests