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






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






3. Net Profit After Taxes/ Net Worth






4. 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






5. Total Expenses/ Net Sales






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






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






8. Short time - like 1 or 2 day sales






9. Original Retail price- markdown selling price






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






11. 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






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






13. Liabilities+ Owner's equity or net worth






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






15. 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






16. (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%






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






18. Financial debts incurred by a retailer






19. 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






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






21. Costs involved in running the business






22. Net dollar markdown/ net dollar selling price






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






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






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






26. 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.






27. 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.






28. Net Profit After Taxes/ Total Assets






29. Can be transformed simply and rapidly into cash






30. 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.






31. 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.






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






33. Price is changed (up or down)






34. Cost + Markup






35. Net Profit/ Net Sales






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






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






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






39. Revenues received by a retailer






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






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






42. Current Liabilites/ Net Worth






43. 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






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






45. The weather - merchandise is shopworn - economic downturn






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






47. Total Assets/ Net Worth






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






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






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