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






2. (Cash + Accounts Receivable) / Current Liabilities






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






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. Cost Price/ (100%-markup %)






6. 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.






7. Net dollar markdown/ net dollar selling price






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






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






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






11. Costs involved in running the business






12. Can be transformed simply and rapidly into cash






13. 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






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






15. 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






16. The weather - merchandise is shopworn - economic downturn






17. 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.






18. Price is changed (up or down)






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






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






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






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






23. 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.






24. Price Lining - price zones - price ranges






25. Financial debts incurred by a retailer






26. What the retailer owns in monetary value






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






28. 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






29. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






31. 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






32. Cost + Markup






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






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






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






36. 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






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






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






39. 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






40. Net Profit After Taxes/ Total Assets






41. 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






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






43. One that is just enough to move the goods






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






45. Short time - like 1 or 2 day sales






46. Current Assets/ Current Liabilities






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






48. Total Expenses/ Net Sales






49. 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






50. Current Liabilites/ Net Worth







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