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






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






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






5. 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






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






7. (Cash + Accounts Receivable) / Current Liabilities






8. Net Profit After Taxes/ Total Assets






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






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






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






12. Can be transformed simply and rapidly into cash






13. Evaluates the managament of capital






14. 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






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






16. 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.






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






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






19. 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.






20. 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






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






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






23. Net dollar markdown/ net dollar selling price






24. 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






25. 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






26. 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






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






28. 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.






29. Net Profit After Taxes/ Net Worth






30. 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.






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






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






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






34. Revenues received by a retailer






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






36. Sales less cost of goods sold






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






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






39. The weather - merchandise is shopworn - economic downturn






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






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






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






43. Sales for the period/ average inventory






44. 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






45. Current Assets/ Current Liabilities






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






47. Current Liabilites/ Net Worth






48. Price Lining - price zones - price ranges






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






50. What the retailer owns in monetary value







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