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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. Can be transformed simply and rapidly into cash






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






3. Price is changed (up or down)






4. Net Profit After Taxes/ Net Worth






5. 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






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






7. Current Liabilites/ Net Worth






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






9. 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






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






11. Sales for the period/ average inventory






12. 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






13. Total Expenses/ Net Sales






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






15. What the retailer owns in monetary value






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






17. Short time - like 1 or 2 day sales






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. (Cash + Accounts Receivable) / Current Liabilities






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






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






22. Buying errors - promotion errors - pricing errors - uncontrollable errors






23. 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






24. 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






25. Financial debts incurred by a retailer






26. 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






27. 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






28. Net Profit After Taxes/ Total Assets






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






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






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






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






33. Current Assets/ Current Liabilities






34. Original Retail price- markdown selling price






35. 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.






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






37. Sales less cost of goods sold






38. Net dollar markdown/ net dollar selling price






39. 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






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. 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






42. Net Profit/ Net Sales






43. 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.






44. Revenues received by a retailer






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






46. Liabilities+ Owner's equity or net worth






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






48. Evaluates the managament of capital






49. Cost + Markup






50. Costs involved in running the business







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Can you answer 50 questions in 15 minutes?


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