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. 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.






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






3. Costs involved in running the business






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. 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.






6. Current Assets/ Current Liabilities






7. Net Profit After Taxes/ Total Assets






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






9. Evaluates the managament of capital






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






11. Original Retail price- markdown selling price






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






13. Revenues received by a retailer






14. Net Profit After Taxes/ Net Worth






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






16. 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






17. 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






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






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






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






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






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






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






25. 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






26. (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%






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






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






29. 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.






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






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






32. 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.






33. 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






34. Current Liabilites/ Net Worth






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






36. 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.






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






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. 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






40. Total Expenses/ Net Sales






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. Price Lining - price zones - price ranges






43. Short time - like 1 or 2 day sales






44. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






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






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






48. Net dollar markdown/ net dollar selling price






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






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







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