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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. First price or Manufacturers suggestet Retal Price (MSRP)






2. 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






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






4. Sales for the period/ average inventory






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






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






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






8. 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






9. 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.






10. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






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






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






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






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






17. 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






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






19. 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.






20. Net Profit After Taxes/ Total Assets






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






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






23. (gross margin % x Turnover) / (100%-markup %)






24. 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.






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






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






27. Net Profit/ Net Sales






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






29. Liabilities+ Owner's equity or net worth






30. Original Retail price- markdown selling price






31. 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






32. Price is changed (up or down)






33. Financial debts incurred by a retailer






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






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






36. Cost + Markup






37. Current Assets/ Current Liabilities






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






39. 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.






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






41. One that is just enough to move the goods






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






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






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






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






46. Revenues received by a retailer






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






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






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






50. (Cash + Accounts Receivable) / Current Liabilities







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