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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. 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






2. Costs involved in running the business






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






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






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






7. 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.






8. 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






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






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






11. Net dollar markdown/ net dollar selling price






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 retailers financial condition at a specific point in time






14. Can be transformed simply and rapidly into cash






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






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






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






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






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






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






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






22. Net Profit After Taxes/ Total Assets






23. Short time - like 1 or 2 day sales






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






25. Financial debts incurred by a retailer






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






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






28. 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






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






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






31. Liabilities+ Owner's equity or net worth






32. Price is changed (up or down)






33. 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.






34. One that is just enough to move the goods






35. Price Lining - price zones - price ranges






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






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






38. Current Liabilites/ Net Worth






39. 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






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






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






42. (Cash + Accounts Receivable) / Current Liabilities






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






44. Net Profit After Taxes/ Net Worth






45. 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






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






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






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






49. 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






50. 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.







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