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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. Costs involved in running the business






2. 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






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






4. 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






5. What the retailer owns in monetary value






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






8. 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






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






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






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






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






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






14. Financial debts incurred by a retailer






15. Price Lining - price zones - price ranges






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






17. One that is just enough to move the goods






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






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






20. Cost + Markup






21. 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






22. (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%






23. Current Liabilites/ Net Worth






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






25. Net Profit/ Net Sales






26. Original Retail price- markdown selling price






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






28. Total Expenses/ Net Sales






29. Net Profit After Taxes/ Net Worth






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






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






32. The number of items remaining in stock x dollar markdown






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






34. Sales less cost of goods sold






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






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






37. 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






38. Can be transformed simply and rapidly into cash






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






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






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






42. 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






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






44. Buying errors - promotion errors - pricing errors - uncontrollable errors






45. Current Assets/ Current Liabilities






46. 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






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






48. 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.






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






50. 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.






Can you answer 50 questions in 15 minutes?



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