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






2. The weather - merchandise is shopworn - economic downturn






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






4. Can be transformed simply and rapidly into cash






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






6. 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






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






8. Total Assets/ Net Worth






9. Original Retail price- markdown selling price






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






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






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






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






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






15. 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.






16. 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






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






18. 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.






19. Total Expenses/ Net Sales






20. What the retailer owns in monetary value






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






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






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






24. Sales less cost of goods sold






25. 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






26. 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.






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






28. 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






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






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






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






32. Short time - like 1 or 2 day sales






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






34. Liabilities+ Owner's equity or net worth






35. 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.






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






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






38. 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






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






40. 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






41. Price is changed (up or down)






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






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






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






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






46. Costs involved in running the business






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






48. 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






49. 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






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







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