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






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






3. 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






4. Can be transformed simply and rapidly into cash






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






6. 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






7. 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






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






9. 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






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






11. 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.






12. Total Assets/ Net Worth






13. Dollar markup ($)/ retail price ($)






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






15. Gross margin less operating expenses=NP before taxes. Deducting taxes=NP after taxes






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






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






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






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






20. Costs involved in running the business






21. 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






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






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






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. 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






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






27. Current Assets/ Current Liabilities






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






29. Liabilities+ Owner's equity or net worth






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






31. Sales for the period/ average inventory






32. Net Profit After Taxes/ Net Worth






33. 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.






34. 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






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






36. 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






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






38. Net Profit After Taxes/ Total Assets






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






40. Net dollar markdown/ net dollar selling price






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






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






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






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. Revenues received by a retailer






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






47. Original Retail price- markdown selling price






48. Buying errors - promotion errors - pricing errors - uncontrollable errors






49. Price is changed (up or down)






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







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