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






2. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






4. Price Lining - price zones - price ranges






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






6. 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






7. (Cash + Accounts Receivable) / Current Liabilities






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






9. Financial debts incurred by a retailer






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






11. 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.






12. 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






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






14. Total Assets/ Net Worth






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






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






17. Net Profit/ Net Sales






18. One that is just enough to move the goods






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






20. Can be transformed simply and rapidly into cash






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






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






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






25. Net Profit After Taxes/ Net Worth






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






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






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






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






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






31. 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






32. 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






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






34. Net Profit After Taxes/ Total Assets






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






36. Current Assets/ Current Liabilities






37. What the retailer owns in monetary value






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






39. 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






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






41. 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






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






43. Revenues received by a retailer






44. Cost + Markup






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






46. Net dollar markdown/ net dollar selling price






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






48. 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.






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







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