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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. Current Assets/ Current Liabilities






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






3. 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






4. Revenues received by a retailer






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






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. Evaluates the managament of capital






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






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






10. Net Profit After Taxes/ Total Assets






11. Cost + Markup






12. 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






13. 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






14. Total Expenses/ Net Sales






15. What the retailer owns in monetary value






16. Can be transformed simply and rapidly into cash






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






18. Net Profit After Taxes/ Net Worth






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






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






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






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






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






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






25. Total Assets/ Net Worth






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






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






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






29. 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.






30. 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






31. Financial debts incurred by a retailer






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






33. 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






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. 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






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






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






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






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






40. Price is changed (up or down)






41. 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.






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






43. 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.






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






45. Sales for the period/ average inventory






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






47. (Cash + Accounts Receivable) / Current Liabilities






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






49. Sales less cost of goods sold






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







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