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. Improper displays - merchandise returns due to high pressure selling






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






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






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






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






6. 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.






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






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






9. Total Expenses/ Net Sales






10. 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






11. 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.






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






13. 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






14. 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






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






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






17. 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






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






19. Net Profit After Taxes/ Net Worth






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






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






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






23. 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.






24. Sales for the period/ average inventory






25. (Cash + Accounts Receivable) / Current Liabilities






26. Ranges of prices that appeals for a particular group of consumers






27. 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






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






29. 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.






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






31. Costs involved in running the business






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






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






34. Can be transformed simply and rapidly into cash






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






36. Evaluates the managament of capital






37. Short time - like 1 or 2 day sales






38. What the retailer owns in monetary value






39. One that is just enough to move the goods






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






41. Net Profit After Taxes/ Total Assets






42. Original Retail price- markdown selling price






43. Net dollar markdown/ net dollar selling price






44. Price is changed (up or down)






45. Current Assets/ Current Liabilities






46. Cost + Markup






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






48. 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






49. Revenues received by a retailer






50. Sales less cost of goods sold