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






2. The weather - merchandise is shopworn - economic downturn






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






4. Current Liabilites/ Net Worth






5. 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






6. 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






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






8. Sales for the period/ average inventory






9. 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.






10. Price Lining - price zones - price ranges






11. 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.






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






13. Liabilities+ Owner's equity or net worth






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






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






16. Current Assets/ Current Liabilities






17. Net dollar markdown/ net dollar selling price






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






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






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






21. 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






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






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






24. 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






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






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






27. 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.






28. Total Expenses/ Net Sales






29. (Cash + Accounts Receivable) / Current Liabilities






30. Net Profit After Taxes/ Total Assets






31. One that is just enough to move the goods






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






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






34. Evaluates the managament of capital






35. Buying errors - promotion errors - pricing errors - uncontrollable errors






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






37. Total Assets/ Net Worth






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






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






40. Price is changed (up or down)






41. 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






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






43. 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.






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






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






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






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






48. 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






49. What the retailer owns in monetary value






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






Can you answer 50 questions in 15 minutes?



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