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






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






3. Total Expenses/ Net Sales






4. 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






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






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






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






8. 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






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






10. 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.






11. Financial debts incurred by a retailer






12. Price Lining - price zones - price ranges






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






14. Net dollar markdown/ net dollar selling price






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






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






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






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






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






20. Ensures that there is enough cash to pay debts. Any time the ratio is colse to 1 - the retailer is said to be in a liquid position.






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






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






23. 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






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






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






26. Current Liabilites/ Net Worth






27. Revenues received by a retailer






28. One that is just enough to move the goods






29. Total Assets/ Net Worth






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






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






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






33. The weather - merchandise is shopworn - economic downturn






34. 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






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






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






37. 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.






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






39. (Cash + Accounts Receivable) / Current Liabilities






40. 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.






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






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






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






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






45. 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.






46. Price is changed (up or down)






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






48. 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






49. 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.






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






Can you answer 50 questions in 15 minutes?



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