Question 1

________ 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 marginF) A) and D)
G) A) and C)

Question 2

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.F) A) and B)
G) A) and C)

Question 3

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.F) C) and D)
G) D) and E)

Question 4

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)  allowanceF) C) and D)
G) A) and B)

Question 5

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 expensesF) A) and B)
G) A) and C)

Question 6

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 marginF) A) and C)
G) A) and E)

Question 7

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 percentF) A) and B)
G) B) and E)

Question 8

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 percentF) None of the above
G) A) and B)

Question 9

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.F) C) and D)
G) None of the above

Question 10

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)  markdownF) A) and B)
G) A) and D)

Question 11

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.F) C) and E)
G) C) and D)

Question 12

________ 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)  MarkdownF) C) and D)
G) A) and B)

Question 13

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.F) B) and C)
G) A) and D)

Question 14

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 percentF) B) and D)
G) B) and C)

Question 15

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)  markdownF) C) and D)
G) All of the above

Question 16

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 percentF) B) and D)
G) B) and E)

Question 17

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 percentF) All of the above
G) None of the above

Question 18

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.F) None of the above
G) A) and E) A

Question 19

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)  variableF) A) and C)
G) C) and D) D

Question 20

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 mineF) None of the above
G) A) and B) C

Exam 24: Financial Statements and Ratios

________ 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.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

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

Correct Answer
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Correct Answer
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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?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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.

Correct Answer
verified

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

Correct Answer
verified

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.

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
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A

Correct Answer
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D

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

Correct Answer
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C

Exam 24: Financial Statements and Ratios

________ 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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

Correct AnswerverifiedD

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

Correct AnswerverifiedC

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A

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D

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C