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






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






3. 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






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






5. (Cash + Accounts Receivable) / Current Liabilities






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






7. Sales less cost of goods sold






8. Original Retail price- markdown selling price






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






10. Net Profit After Taxes/ Total Assets






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






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






13. The weather - merchandise is shopworn - economic downturn






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






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






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






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






18. Current Liabilites/ Net Worth






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






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






21. (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%






22. 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






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






24. 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






25. The value of this calculation is that consumers can understand the price reduction when the retailer is promoting this merchandise.






26. 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






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






28. 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






29. Sales for the period/ average inventory






30. Net Profit After Taxes/ Net Worth






31. Revenues received by a retailer






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






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






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






35. 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.






36. Price Lining - price zones - price ranges






37. 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.






38. 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






39. Liabilities+ Owner's equity or net worth






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






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






42. 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.






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






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






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






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






47. One that is just enough to move the goods






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






49. 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






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