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. Sales less cost of goods sold






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






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






4. Costs involved in running the business






5. 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.






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






7. Cost + Markup






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






9. Sales for the period/ average inventory






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






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






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






13. The weather - merchandise is shopworn - economic downturn






14. Price Lining - price zones - price ranges






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






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






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






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






19. 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.






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






21. 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






22. 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






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






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






25. Net Profit After Taxes/ Net Worth






26. 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






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. One that is just enough to move the goods






29. Net Profit/ Net Sales






30. 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






31. Total Assets/ Net Worth






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






33. (Cash + Accounts Receivable) / Current Liabilities






34. 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.






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






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






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






38. 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.






39. Current Assets/ Current Liabilities






40. 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






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. Net Profit After Taxes/ Total Assets






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






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






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






46. Current Liabilites/ Net Worth






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






48. 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






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






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







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