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






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






3. 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.






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






5. The higher the ratio the quicker current liabilities can be paid. This ratio also indicates the margin of safety a retailer has on hand to cover possible shrinkages






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






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






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






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






10. 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






11. One that is just enough to move the goods






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






13. Total Assets/ Net Worth






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






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






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






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






18. Sales less cost of goods sold






19. 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.






20. What the retailer owns in monetary value






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






22. Can be transformed simply and rapidly into cash






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






24. Original Retail price- markdown selling price






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






26. Sales for the period/ average inventory






27. Liabilities+ Owner's equity or net worth






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






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






30. Total Expenses/ Net Sales






31. 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






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






33. Net Profit/ Net Sales






34. (Cash + Accounts Receivable) / Current Liabilities






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






36. Short time - like 1 or 2 day sales






37. Price Lining - price zones - price ranges






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






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






40. The weather - merchandise is shopworn - economic downturn






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






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






43. 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






44. Current Assets/ Current Liabilities






45. Current Liabilites/ Net Worth






46. 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.






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






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






49. Net Profit After Taxes/ Total Assets






50. Price is changed (up or down)







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