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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. Evaluates the managament of capital






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






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






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






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






6. Costs involved in running the business






7. (Cash + Accounts Receivable) / Current Liabilities






8. 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






9. Represents the total dollar markdown as a percentage of total dollar net sales. This is typically not for an individual item.






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






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






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






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






14. 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






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






16. (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%






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






18. 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






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






20. 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.






21. Current Liabilites/ Net Worth






22. Price is changed (up or down)






23. 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.






24. Cost + Markup






25. One that is just enough to move the goods






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






27. Net dollar markdown/ net dollar selling price






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






29. 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.






30. Net Profit After Taxes/ Total Assets






31. Net Profit After Taxes/ Net Worth






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






33. The weather - merchandise is shopworn - economic downturn






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






35. 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






36. Can be transformed simply and rapidly into cash






37. Price Lining - price zones - price ranges






38. 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






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






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






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






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






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






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






45. 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






46. Financial debts incurred by a retailer






47. Original Retail price- markdown selling price






48. 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






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






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







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