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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. First price or Manufacturers suggestet Retal Price (MSRP)






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






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






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






5. One that is just enough to move the goods






6. 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






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






8. Sales less cost of goods sold






9. 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.






10. 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






11. Liabilities+ Owner's equity or net worth






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






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






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






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






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






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






18. 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.






19. Net Profit After Taxes/ Net Worth






20. 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






21. 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






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






23. Cost + Markup






24. 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.






25. Current Assets/ Current Liabilities






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






27. Net Profit After Taxes/ Total Assets






28. 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.






29. Original Retail price- markdown selling price






30. The weather - merchandise is shopworn - economic downturn






31. Price is changed (up or down)






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






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






34. Net dollar markdown/ net dollar selling price






35. Revenues received by a retailer






36. 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






37. 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






38. Short time - like 1 or 2 day sales






39. Current Liabilites/ Net Worth






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






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






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






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






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






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






46. Costs involved in running the business






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






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






49. Net Profit/ Net Sales






50. Financial debts incurred by a retailer







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