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Retail Financials

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. Statistical forecasting tool that helps retailers to predict how apparel markdowns may affect the bottom-line business and objectives before the markdowns are implemented






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






3. Liabilities+ Owner's equity or net worth






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






5. 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.






6. 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






7. 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.






8. Net dollar markdown/ net dollar selling price






9. The weather - merchandise is shopworn - economic downturn






10. 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.






11. Total Expenses/ Net Sales






12. 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






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






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






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






16. Short time - like 1 or 2 day sales






17. The higher the ratio the quicker current liabilities can be paid. This ratio also indicates the margin of safety a retailer has on hand to cover possible shrinkages






18. 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.






19. Evaluates the managament of capital






20. Financial debts incurred by a retailer






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






22. Current Liabilites/ Net Worth






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






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






25. 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






26. One that is just enough to move the goods






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






28. Net Profit After Taxes/ Net Worth






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






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






31. Cost + Markup






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






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






34. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






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






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






38. 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.






39. 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






40. Costs involved in running the business






41. 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






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






43. 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






44. Can be transformed simply and rapidly into cash






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






46. What the retailer owns in monetary value






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






48. Total Assets/ Net Worth






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






50. 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







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