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






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






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






4. 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.






5. Net Profit After Taxes/ Total Assets






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






7. Net Profit After Taxes/ Net Worth






8. 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






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






10. Price is changed (up or down)






11. Total Expenses/ Net Sales






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






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






14. 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






15. What the retailer owns in monetary value






16. Financial debts incurred by a retailer






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






18. 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.






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






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






21. Current Liabilites/ Net Worth






22. 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






23. 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






24. 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






25. 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.






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






27. 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






28. Net dollar markdown/ net dollar selling price






29. Sales less cost of goods sold






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






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






32. 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.






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






34. Evaluates the managament of capital






35. Liabilities+ Owner's equity or net worth






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






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






38. Costs involved in running the business






39. One that is just enough to move the goods






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






41. Can be transformed simply and rapidly into cash






42. 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.






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






44. 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






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






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






47. Revenues received by a retailer






48. Cost + Markup






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






50. 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.







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