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






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






3. 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.






4. 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






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






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






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






8. Sales less cost of goods sold






9. 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






10. Net dollar markdown/ net dollar selling price






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






12. 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






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






14. Original Retail price- markdown selling price






15. 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.






16. Current Assets/ Current Liabilities






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






18. 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






19. Net Profit/ Net Sales






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






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






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






23. Cost + Markup






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






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






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






27. 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






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






29. Total Expenses/ Net Sales






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






31. Price Lining - price zones - price ranges






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






33. (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%






34. Short time - like 1 or 2 day sales






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






36. Evaluates the managament of capital






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






38. (gross margin % x Turnover) / (100%-markup %)






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






40. The weather - merchandise is shopworn - economic downturn






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






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






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






44. 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.






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






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






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






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






50. What the retailer owns in monetary value