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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. Net Profit After Taxes/ Total Assets






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






3. 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






4. 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.






5. Current Assets/ Current Liabilities






6. When fixed assets such as fixtures and equipment are continually used and therefore lose some of their monetary value (Ex: your car)






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






8. Revenues received by a retailer






9. Current Liabilites/ Net Worth






10. 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.






11. Price is changed (up or down)






12. What the retailer owns in monetary value






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






14. Liabilities+ Owner's equity or net worth






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






16. Total Expenses/ Net Sales






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






18. Buying errors - promotion errors - pricing errors - uncontrollable errors






19. Net dollar markdown/ net dollar selling price






20. 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






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






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






23. 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






24. 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.






25. Financial debts incurred by a retailer






26. 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






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






28. 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






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






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. First price or Manufacturers suggestet Retal Price (MSRP)






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






33. The weather - merchandise is shopworn - economic downturn






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






35. 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






36. One that is just enough to move the goods






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






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






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






40. Evaluates the managament of capital






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






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






43. Costs involved in running the business






44. Sales for the period/ average inventory






45. 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






46. 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.






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






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






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







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