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






2. Cost + Markup






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






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






5. Sales for the period/ average inventory






6. 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






7. Can be transformed simply and rapidly into cash






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






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






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






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






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






13. What the retailer owns in monetary value






14. Evaluates the managament of capital






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






16. 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






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






18. 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






19. The weather - merchandise is shopworn - economic downturn






20. 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.






21. (Cash + Accounts Receivable) / Current Liabilities






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






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






25. Sales less cost of goods sold






26. 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.






27. 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






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






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






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






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






32. Current Assets/ Current Liabilities






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






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






36. 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.






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






38. 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






39. Price Lining - price zones - price ranges






40. Price is changed (up or down)






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






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






43. Revenues received by a retailer






44. 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.






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






46. Costs involved in running the business






47. Also referred to as the income or operating statement. 5 Basic Elements: Net Sales - Cost of Goods sold - Gross Margin - Operating Expenses - Net profit






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






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






50. Financial debts incurred by a retailer