Question 1

Which of the following profitability ratios measures the firm's efficiency in generating sales and profits from the total amount invested in the company?

Accepted Answer

A) Inventory turnover 
B) Gross profit margin 
C) Return on assets 
D) Net interest expense 
A) Inventory turnover 
B) Gross profit margin 
C) Return on assets 
D) Net interest expense C

Question 2

Receivables are collected credit sales.

Accepted Answer

A) True 
 B)False  False

Question 3

Venus Inc.,a software consulting firm,had depreciation of $20.8 million and a net interest expense of $3.2 million for the past year.The firm's operating profit for the same year was $319.0 million.What was the firm's taxable income for the past year?

Accepted Answer

A) $400 million 
B) $299.2 million 
C) $295 million 
D) $316.8 million 
A) $400 million 
B) $299.2 million 
C) $295 million 
D) $316.8 million C

Question 4

The difference between assets and liabilities of a company is referred to as owner's equity.
Indicate the answer choice that best completes the statement or answers the question.

Accepted Answer

A) True 
 B)False

Question 5

Cost of goods sold represents the revenue a firm receives from goods sold to customers.

Accepted Answer

A) True 
 B)False

Question 6

The gross profit margin is the percentage of each sales dollar that a firm earns in profit after all expenses have been paid.

Accepted Answer

A) True 
 B)False

Question 7

Subtracting depreciation and net interest expense from the firm's operating profit reveals the firm's taxable income.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is true of markup?

Accepted Answer

A) A marketer's markup exerts no influence on its image as perceived by customers. 
B) Retailers who offer more services charge larger markups to cover their costs. 
C) Markups typically are stated as percentages of net interest expenses. 
D) Retailers with a lower turnover rate can make a profit by charging a smaller markup. 
A) A marketer's markup exerts no influence on its image as perceived by customers. 
B) Retailers who offer more services charge larger markups to cover their costs. 
C) Markups typically are stated as percentages of net interest expenses. 
D) Retailers with a lower turnover rate can make a profit by charging a smaller markup.

Question 9

An income statement is a snapshot of what a company owns (called assets)and what it owes (called liabilities)at a point in time.

Accepted Answer

A) True 
 B)False

Question 10

Depreciation is an unusual expense because it does not involve an actual cash expense.

Accepted Answer

A) True 
 B)False

Question 11

While calculating the accounts receivable turnover ratio,sales to buyers using credit cards like MasterCard and Visa are counted as credit sales because the seller is providing credit to the buyer who buys without cash.

Accepted Answer

A) True 
 B)False

Question 12

Venus Inc.,a software consulting firm,had made a gross profit of $350.0 million for the year 2012.For the same year,it had made sales of $890.0 million.What was its gross profit margin?

Accepted Answer

A) 69.32% 
B) 59.32% 
C) 49.32% 
D) 39.32% 
A) 69.32% 
B) 59.32% 
C) 49.32% 
D) 39.32%

Question 13

Explain the difference between an income statement and a balance sheet.

Accepted Answer

Two of the most important financial stat

Question 14

All successful organizations have the same inventory turnover ratio.

Accepted Answer

A) True 
 B)False

Question 15

Calculate the markdown if a retailer decides to reduce the price of an item from $45 to $38 and sells 500 units.

Accepted Answer

A) 7% 
B) 18.42% 
C) 15.56% 
D) 9% 
A) 7% 
B) 18.42% 
C) 15.56% 
D) 9%

Question 16

A balance sheet contains more marketing-related information than an income statement.

Accepted Answer

A) True 
 B)False

Question 17

What is a markup? What are the two marketing decisions that decide the amount of markup? Explain why a markup is important to a marketer.

Accepted Answer

The amount that a marketer adds to a pro

Question 18

In the context of financial statements,which of the following represents the systematic reduction over time in the value of certain company assets?

Accepted Answer

A) Depreciation 
B) Attrition 
C) Recession 
D) Deduction 
A) Depreciation 
B) Attrition 
C) Recession 
D) Deduction

Which of the following profitability ratios measures the firm's efficiency in generating sales and profits from the total amount invested in the company?

Receivables are collected credit sales.

Venus Inc.,a software consulting firm,had depreciation of $20.8 million and a net interest expense of $3.2 million for the past year.The firm's operating profit for the same year was $319.0 million.What was the firm's taxable income for the past year?

The difference between assets and liabilities of a company is referred to as owner's equity. Indicate the answer choice that best completes the statement or answers the question.

Cost of goods sold represents the revenue a firm receives from goods sold to customers.

The gross profit margin is the percentage of each sales dollar that a firm earns in profit after all expenses have been paid.

Subtracting depreciation and net interest expense from the firm's operating profit reveals the firm's taxable income.

Which of the following statements is true of markup?

An income statement is a snapshot of what a company owns (called assets)and what it owes (called liabilities)at a point in time.

Depreciation is an unusual expense because it does not involve an actual cash expense.

While calculating the accounts receivable turnover ratio,sales to buyers using credit cards like MasterCard and Visa are counted as credit sales because the seller is providing credit to the buyer who buys without cash.

Venus Inc.,a software consulting firm,had made a gross profit of $350.0 million for the year 2012.For the same year,it had made sales of $890.0 million.What was its gross profit margin?

Explain the difference between an income statement and a balance sheet.

All successful organizations have the same inventory turnover ratio.

Calculate the markdown if a retailer decides to reduce the price of an item from $45 to $38 and sells 500 units.

A balance sheet contains more marketing-related information than an income statement.

What is a markup? What are the two marketing decisions that decide the amount of markup? Explain why a markup is important to a marketer.

In the context of financial statements,which of the following represents the systematic reduction over time in the value of certain company assets?

Marketing: the Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, ethics, and Social Responsibility

Social Media: Living in the Connected World

E-Business: Managing the Customer Experience

Consumer Behavior

Business-To-Business B2bmarketing

Global Marketing

Market Segmentation, targeting, and Positioning

Marketing Research in the Era of Big Data

Relationship Marketing and Customer Relationship Management Crm

Product and Service Strategies

Developing and Managing Brand and Product Categories

Marketing Channels and Supply Chain Management

Retailers, wholesalers, and Direct Marketers

Integrated Marketing Communications, advertising, and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Pricing Strategies

Developing an Effective Marketing Plan

Filters

Exam 21: Financial Analysis in Marketing

Which of the following profitability ratios measures the firm's efficiency in generating sales and profits from the total amount invested in the company?

Receivables are collected credit sales.

Venus Inc.,a software consulting firm,had depreciation of $20.8 million and a net interest expense of $3.2 million for the past year.The firm's operating profit for the same year was $319.0 million.What was the firm's taxable income for the past year?

The difference between assets and liabilities of a company is referred to as owner's equity. Indicate the answer choice that best completes the statement or answers the question.

Cost of goods sold represents the revenue a firm receives from goods sold to customers.

The gross profit margin is the percentage of each sales dollar that a firm earns in profit after all expenses have been paid.

Subtracting depreciation and net interest expense from the firm's operating profit reveals the firm's taxable income.

Which of the following statements is true of markup?

An income statement is a snapshot of what a company owns (called assets)and what it owes (called liabilities)at a point in time.

Depreciation is an unusual expense because it does not involve an actual cash expense.

While calculating the accounts receivable turnover ratio,sales to buyers using credit cards like MasterCard and Visa are counted as credit sales because the seller is providing credit to the buyer who buys without cash.

Venus Inc.,a software consulting firm,had made a gross profit of $350.0 million for the year 2012.For the same year,it had made sales of $890.0 million.What was its gross profit margin?

Explain the difference between an income statement and a balance sheet.

All successful organizations have the same inventory turnover ratio.

Calculate the markdown if a retailer decides to reduce the price of an item from $45 to $38 and sells 500 units.

A balance sheet contains more marketing-related information than an income statement.

What is a markup? What are the two marketing decisions that decide the amount of markup? Explain why a markup is important to a marketer.

In the context of financial statements,which of the following represents the systematic reduction over time in the value of certain company assets?

Marketing: the Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, ethics, and Social Responsibility

Social Media: Living in the Connected World

E-Business: Managing the Customer Experience

Consumer Behavior

Business-To-Business B2bmarketing

Global Marketing

Market Segmentation, targeting, and Positioning

Marketing Research in the Era of Big Data

Relationship Marketing and Customer Relationship Management Crm

Product and Service Strategies

Developing and Managing Brand and Product Categories

Marketing Channels and Supply Chain Management

Retailers, wholesalers, and Direct Marketers

Integrated Marketing Communications, advertising, and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Pricing Strategies

Developing an Effective Marketing Plan

Filters