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






2. Total Assets/ Net Worth






3. Financial debts incurred by a retailer






4. Net Profit After Taxes/ Total Assets






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






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






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






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






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






10. Cost + Markup






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






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






13. 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






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






15. Evaluates the managament of capital






16. Original Retail price- markdown selling price






17. Liabilities+ Owner's equity or net worth






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






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






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






21. The weather - merchandise is shopworn - economic downturn






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






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






24. 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






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






26. 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






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






28. Costs involved in running the business






29. 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






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






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






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






33. 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






34. Revenues received by a retailer






35. Price Lining - price zones - price ranges






36. 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






37. (Cash + Accounts Receivable) / Current Liabilities






38. 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






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






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






41. Price is changed (up or down)






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






43. Net Profit/ Net Sales






44. Total Expenses/ Net Sales






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






46. 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.






47. Sales for the period/ average inventory






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






49. Sales less cost of goods sold






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







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