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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. Improper displays - merchandise returns due to high pressure selling






2. 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.






3. Liabilities+ Owner's equity or net worth






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






5. Cost + Markup






6. Short time - like 1 or 2 day sales






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






8. Evaluates the managament of capital






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






10. Price is changed (up or down)






11. In the Cost Method. Merchandise most recently purchased is assumed to have been sold first. Therefore - the ending inventory reflects the items in stock for the longest period of time. Produces lowest ending inventory value and highest cost of goods






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






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






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. The retailers financial condition at a specific point in time






17. 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






18. 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






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






20. 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






21. Net dollar markdown/ net dollar selling price






22. Assesses the retailers ability to realize adequate return on the money that is invested by the retail owner.






23. Current Liabilites/ Net Worth






24. 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






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






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






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






28. (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%






29. Price Lining - price zones - price ranges






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






31. Can be transformed simply and rapidly into cash






32. 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






33. Financial debts incurred by a retailer






34. 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.






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






36. Current Assets/ Current Liabilities






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






38. 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.






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






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






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






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






43. 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.






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






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






46. Total Expenses/ Net Sales






47. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






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






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







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