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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. The energizing force that fuels and sustains our economic system






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






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






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






5. The largest sum of money in current assets. Can be presented in either cost or retail terms. Should be purchased for a short period of time - as products lose monetary value over time and are subject to markdowns.






6. Liabilities+ Owner's equity or net worth






7. Evaluates the managament of capital






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






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






10. Cost + Markup






11. Net Profit After Taxes/ Total Assets






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






13. Revenues received by a retailer






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






15. Net Profit/ Net Sales






16. Buying errors - promotion errors - pricing errors - uncontrollable errors






17. Financial debts incurred by a retailer






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






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






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






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






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






23. 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






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






25. 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






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






27. What the retailer owns in monetary value






28. 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






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






30. Sales less cost of goods sold






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






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






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






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






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






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






37. Current Assets/ Current Liabilities






38. 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






39. 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






40. Short time - like 1 or 2 day sales






41. 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






42. The weather - merchandise is shopworn - economic downturn






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






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






45. 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.






46. Price is changed (up or down)






47. Net dollar markdown/ net dollar selling price






48. 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






49. Price Lining - price zones - price ranges






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







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