Question 1

The ________ summarizes the profitability of a business firm for a specific time period,usually a month,quarter,or year.

Accepted Answer

A) balance sheet 
B) annual report 
C) income statement 
D) assets-liabilities statement 
E) data mine 
A) balance sheet 
B) annual report 
C) income statement 
D) assets-liabilities statement 
E) data mine C

Question 2

A company's operating statement is also called a(n)

Accepted Answer

A) income statement. 
B) balance sheet. 
C) de facto annual report. 
D) assets-liabilities statement. 
E) data mine. 
A) income statement. 
B) balance sheet. 
C) de facto annual report. 
D) assets-liabilities statement. 
E) data mine. A

Question 3

To increase the number of dogs boarding at its facilities,Muntz Kennels mailed coupons to dog owners who lived within a 25-mile radius of the facility.The printing and postage costs for the mailing plus the coupon redemptions would appear in which major expense category on the company's income statement?

Accepted Answer

A) general 
B) administrative 
C) fixed 
D) selling 
E) variable 
A) general 
B) administrative 
C) fixed 
D) selling 
E) variable D

Question 4

A company's operating statement consists of three key elements: sales of the firm's products and services,costs incurred in making and selling these products and services,and

Accepted Answer

A) stock turn rates for its various products. 
B) profit or loss. 
C) markup on cost. 
D) return on investment. 
E) bundle pricing options. 
A) stock turn rates for its various products. 
B) profit or loss. 
C) markup on cost. 
D) return on investment. 
E) bundle pricing options.

Question 5

When Paulette saw the dress in the store window,she knew two things.She had to own the dress,and she could not afford it at its current price.As she viewed the dress in the store,she thought of the dress as her own and believed no one else would buy it.It seems she was right because no one else did buy it,and the store had to reduce its price by 30 percent in order to dispose of it.This made it affordable for Paulette,who took advantage of a(n)

Accepted Answer

A) negative markup. 
B) markup elimination. 
C) markdown. 
D) liquidity reduction. 
E) increase in net margin. 
A) negative markup. 
B) markup elimination. 
C) markdown. 
D) liquidity reduction. 
E) increase in net margin.

Question 6

________ is a reduction in a retail price that is necessary if the items will not sell at the full selling price to which they have been marked up.

Accepted Answer

A) Stock turn rate 
B) Markdown 
C) ROI 
D) Markup 
E) Net margin 
A) Stock turn rate 
B) Markdown 
C) ROI 
D) Markup 
E) Net margin

Question 7

________ is the financial ratio that measures the ability of a firm to move its inventory quickly.

Accepted Answer

A) Markup 
B) Selling price 
C) Return on investment 
D) Stock turn rate 
E) Markdown 
A) Markup 
B) Selling price 
C) Return on investment 
D) Stock turn rate 
E) Markdown

Question 8

Which of the following is a sales element of an operating statement?

Accepted Answer

A) cost of goods sold 
B) inventory 
C) direct labor 
D) returns 
E) selling expenses 
A) cost of goods sold 
B) inventory 
C) direct labor 
D) returns 
E) selling expenses

Question 9

The gift shop purchased four sets of Block brand hand-painted stemware expecting to sell all four at the list price of $24.99.Unfortunately,the demand for the stemware was not as high as the owner had anticipated.She was only able to sell one at this price.She reduced the price on the other three sets to $16.49 and was able to sell all three sets.Calculate her markdown percentage.

Accepted Answer

A) 0)34 percent 
B) 2)78 percent 
C) 3)43 percent 
D) 27.8 percent 
E) 34.2 percent 
A) 0)34 percent 
B) 2)78 percent 
C) 3)43 percent 
D) 27.8 percent 
E) 34.2 percent

Question 10

All of the following are cost elements of an operating statement except which?

Accepted Answer

A) cost of goods sold 
B) inventory 
C) returns and allowances 
D) direct labor 
E) gross margin 
A) cost of goods sold 
B) inventory 
C) returns and allowances 
D) direct labor 
E) gross margin

Question 11

The ________ is the dollars added to cost of goods sold (COGS)to arrive at the selling price.

Accepted Answer

A) markup 
B) selling price 
C) return on investment 
D) stock turn rate 
E) markdown 
A) markup 
B) selling price 
C) return on investment 
D) stock turn rate 
E) markdown

Question 12

If Jane Westerlund,owner of a picture frame store,raises the average price of a framed picture to $100 and the cost of goods sold is $36,what is the percentage markup on selling price?

Accepted Answer

A) 36 percent 
B) 55 percent 
C) 64 percent 
D) 100 percent 
E) 178 percent 
A) 36 percent 
B) 55 percent 
C) 64 percent 
D) 100 percent 
E) 178 percent

Question 13

Gross sales minus returns and allowances for a firm are called its

Accepted Answer

A) inventory shrinkage. 
B) discounted return on investment. 
C) gross sales. 
D) net sales. 
E) gross margin. 
A) inventory shrinkage. 
B) discounted return on investment. 
C) gross sales. 
D) net sales. 
E) gross margin.

Question 14

If Jane Westerlund,owner of a picture frame store,raises the average price of a framed picture to $80 and the cost of goods sold is $36,what is the percentage markup on cost?

Accepted Answer

A) 36 percent 
B) 55 percent 
C) 64 percent 
D) 100 percent 
E) 182 percent 
A) 36 percent 
B) 55 percent 
C) 64 percent 
D) 100 percent 
E) 182 percent

Question 15

The total cost of the products sold by a firm during a specified period is referred to as

Accepted Answer

A) amortization. 
B) cost of goods sold. 
C) gross sales. 
D) net sales. 
E) gross margin. 
A) amortization. 
B) cost of goods sold. 
C) gross sales. 
D) net sales. 
E) gross margin.

Question 16

The inventory for Jane Westerlund's picture frame store would include

Accepted Answer

A) her molding,matting,and glass. 
B) her skill in framing prints. 
C) her equipment,chairs,tables. 
D) her cost of goods sold. 
E) her rent and utility expenses. 
A) her molding,matting,and glass. 
B) her skill in framing prints. 
C) her equipment,chairs,tables. 
D) her cost of goods sold. 
E) her rent and utility expenses.

Question 17

The ________ is the ratio of net income to the investment used to earn that net income.

Accepted Answer

A) markup 
B) selling margin 
C) return on investment 
D) return on assets 
E) markdown 
A) markup 
B) selling margin 
C) return on investment 
D) return on assets 
E) markdown

Question 18

Rebecca Gollanek makes and sells wooden cooling racks for cakes,cookies,and bread for $22.50 each.She has invested $4,300 in the venture and made $2,200 in net profit.Calculate her return on investment.

Accepted Answer

A) 22.0 percent 
B) 43.0 percent 
C) 48.8 percent 
D) 51.2 percent 
E) 195.5 percent 
A) 22.0 percent 
B) 43.0 percent 
C) 48.8 percent 
D) 51.2 percent 
E) 195.5 percent

Question 19

Leon George sold kites at the beach last summer.He invested $2,500 in the venture and made $1,400 net profit (net income).Calculate his return on investment.

Accepted Answer

A) 15.6 percent 
B) 17.9 percent 
C) 29.9 percent 
D) 47.0 percent 
E) 56.0 percent 
A) 15.6 percent 
B) 17.9 percent 
C) 29.9 percent 
D) 47.0 percent 
E) 56.0 percent

Question 20

When Beth purchased diabetic candy from a catalog retailer,she was sent orange- and lemon-flavored candy coated in dark chocolate.When she called to complain to the catalog retailer,she was told to keep the candy that was incorrectly sent to her,and that the company would immediately ship her the correct candy.This incorrectly sent candy would be listed as a(n)________ on the operating statement for the catalog retailer.

Accepted Answer

A) product return 
B) markdown 
C) amortized product 
D) liquidity error 
E) allowance 
A) product return 
B) markdown 
C) amortized product 
D) liquidity error 
E) allowance

The ________ summarizes the profitability of a business firm for a specific time period,usually a month,quarter,or year.

A company's operating statement is also called a(n)

A company's operating statement consists of three key elements: sales of the firm's products and services,costs incurred in making and selling these products and services,and

________ is a reduction in a retail price that is necessary if the items will not sell at the full selling price to which they have been marked up.

________ is the financial ratio that measures the ability of a firm to move its inventory quickly.

Which of the following is a sales element of an operating statement?

All of the following are cost elements of an operating statement except which?

The ________ is the dollars added to cost of goods sold (COGS)to arrive at the selling price.

If Jane Westerlund,owner of a picture frame store,raises the average price of a framed picture to $100 and the cost of goods sold is $36,what is the percentage markup on selling price?

Gross sales minus returns and allowances for a firm are called its

If Jane Westerlund,owner of a picture frame store,raises the average price of a framed picture to $80 and the cost of goods sold is $36,what is the percentage markup on cost?

The total cost of the products sold by a firm during a specified period is referred to as

The inventory for Jane Westerlund's picture frame store would include

The ________ is the ratio of net income to the investment used to earn that net income.

Rebecca Gollanek makes and sells wooden cooling racks for cakes,cookies,and bread for $22.50 each.She has invested $4,300 in the venture and made $2,200 in net profit.Calculate her return on investment.

Leon George sold kites at the beach last summer.He invested $2,500 in the venture and made $1,400 net profit (net income).Calculate his return on investment.

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, targeting, and Positioning

Developing New Products and Services

Managing Successful Products, services, and Brands

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising,sales Promotion,and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Writing Successful Marketing and Business Plans: Tips and Guidelines

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Exam 24: Financial Statements and Ratios

The ________ summarizes the profitability of a business firm for a specific time period,usually a month,quarter,or year.

A company's operating statement is also called a(n)

A company's operating statement consists of three key elements: sales of the firm's products and services,costs incurred in making and selling these products and services,and

________ is a reduction in a retail price that is necessary if the items will not sell at the full selling price to which they have been marked up.

________ is the financial ratio that measures the ability of a firm to move its inventory quickly.

Which of the following is a sales element of an operating statement?

All of the following are cost elements of an operating statement except which?

The ________ is the dollars added to cost of goods sold (COGS)to arrive at the selling price.

If Jane Westerlund,owner of a picture frame store,raises the average price of a framed picture to $100 and the cost of goods sold is $36,what is the percentage markup on selling price?

Gross sales minus returns and allowances for a firm are called its

If Jane Westerlund,owner of a picture frame store,raises the average price of a framed picture to $80 and the cost of goods sold is $36,what is the percentage markup on cost?

The total cost of the products sold by a firm during a specified period is referred to as

The inventory for Jane Westerlund's picture frame store would include

The ________ is the ratio of net income to the investment used to earn that net income.

Rebecca Gollanek makes and sells wooden cooling racks for cakes,cookies,and bread for $22.50 each.She has invested $4,300 in the venture and made $2,200 in net profit.Calculate her return on investment.

Leon George sold kites at the beach last summer.He invested $2,500 in the venture and made $1,400 net profit (net income).Calculate his return on investment.

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, targeting, and Positioning

Developing New Products and Services

Managing Successful Products, services, and Brands

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising,sales Promotion,and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Writing Successful Marketing and Business Plans: Tips and Guidelines

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