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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. The energizing force that fuels and sustains our economic system






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






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






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






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






6. 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






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






8. 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.






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






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






11. 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






12. One that is just enough to move the goods






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






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






15. 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.






16. Costs involved in running the business






17. Evaluates the managament of capital






18. Liabilities+ Owner's equity or net worth






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






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






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






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






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






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






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






26. Revenues received by a retailer






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






28. Cost + Markup






29. 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






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






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






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






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






35. 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






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






37. Short time - like 1 or 2 day sales






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






39. 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






40. 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.






41. What the retailer owns in monetary value






42. Net Profit/ Net Sales






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






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






45. (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%






46. 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.






47. Price Lining - price zones - price ranges






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






49. 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.






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







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