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






2. Current Assets/ Current Liabilities






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






4. What the retailer owns in monetary value






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






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






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






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






9. 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






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






11. Revenues received by a retailer






12. 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






13. Can be transformed simply and rapidly into cash






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






15. Price is changed (up or down)






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






17. 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






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






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






20. 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.






21. Net Profit After Taxes/ Net Worth






22. Original Retail price- markdown selling price






23. 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






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






25. Sales for the period/ average inventory






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






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






28. Total Expenses/ Net Sales






29. (Cash + Accounts Receivable) / Current Liabilities






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






31. Net dollar markdown/ net dollar selling price






32. 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.






33. Financial debts incurred by a retailer






34. 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






35. Price Lining - price zones - price ranges






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






37. (planned expenses + planned operating profit + planned stock shortages + markdowns + employee and customer discounts) / (planned net sales + stock shortages + markdowns + employee and customer discounts) x 100%






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






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






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






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






42. 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






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






44. One that is just enough to move the goods






45. Total Assets/ Net Worth






46. 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.






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






48. Liabilities+ Owner's equity or net worth






49. Net Profit/ Net Sales






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