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






2. Net Profit After Taxes/ Net Worth






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






6. Financial debts incurred by a retailer






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






8. 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






9. Total Expenses/ Net Sales






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. Sales less cost of goods sold






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






13. (Cash + Accounts Receivable) / Current Liabilities






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






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






16. 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






17. Can be transformed simply and rapidly into cash






18. The weather - merchandise is shopworn - economic downturn






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






20. 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.






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






22. Net Profit After Taxes/ Total Assets






23. 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.






24. Short time - like 1 or 2 day sales






25. What the retailer owns in monetary value






26. Price Lining - price zones - price ranges






27. Original Retail price- markdown selling price






28. 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






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






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






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






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






33. 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






34. 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.






35. Costs involved in running the business






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






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






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






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






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






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






42. (planned expenses + planned operating profit + planned stock shortages + markdowns + employee and customer discounts) / (planned net sales + stock shortages + markdowns + employee and customer discounts) x 100%






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






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






45. 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






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






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






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






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






50. Evaluates the managament of capital







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