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. One that is just enough to move the goods






2. 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






3. Cost + Markup






4. Current Assets/ Current Liabilities






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






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






7. Net dollar markdown/ net dollar selling price






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






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






10. 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






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






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






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






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






15. 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






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






17. Short time - like 1 or 2 day sales






18. Total Expenses/ Net Sales






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






20. Original Retail price- markdown selling price






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






22. Financial debts incurred by a retailer






23. The cost of merchandise that was sold (including the method that was used to determine cost)






24. Current Liabilites/ Net Worth






25. Costs involved in running the business






26. Can be transformed simply and rapidly into cash






27. 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






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






29. 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.






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






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






32. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






34. What the retailer owns in monetary value






35. 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






36. 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






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






38. Price Lining - price zones - price ranges






39. 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






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






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






42. Net Profit After Taxes/ Net Worth






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






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






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






46. Total Assets/ Net Worth






47. Sales for the period/ average inventory






48. 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.






49. Net Profit/ Net Sales






50. (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%