Question 1

Fixtures and equipment are generally considered to be current assets.

Accepted Answer

A) True 
 B)False

Question 2

A(n)_____ is any legitimate financial claim against the retailer's assets.

Accepted Answer

A)  goodwill 
B)  asset 
C)  account receivable 
D)  liability 
E)  cost of goods sold 
A)  goodwill 
B)  asset 
C)  account receivable 
D)  liability 
E)  cost of goods sold

Question 3

Planned purchases at retail is equal to:

Accepted Answer

A)  planned sales and planned reductions and BOM inventory minus planned EOM inventory. 
B)  planned sales and planned EOM inventory minus planned reductions and BOM inventory. 
C)  planned sales minus planned reductions, planned EOM inventory, and one-half BOM inventory. 
D)  planned sales, planned reductions, and planned EOM inventory minus BOM inventory. 
E)  planned sales plus planned reductions. 
A)  planned sales and planned reductions and BOM inventory minus planned EOM inventory. 
B)  planned sales and planned EOM inventory minus planned reductions and BOM inventory. 
C)  planned sales minus planned reductions, planned EOM inventory, and one-half BOM inventory. 
D)  planned sales, planned reductions, and planned EOM inventory minus BOM inventory. 
E)  planned sales plus planned reductions.

Question 4

Asha's Boats has gross sales of $300,000 and cost of goods sold of $100,000.Net sales equals $200,000.

Accepted Answer

A) True 
 B)False

Question 5

_____ is NOT used in the merchandise budget to derive the planned purchases at retail figure.

Accepted Answer

A)  Planned BOM inventory 
B)  Planned net worth 
C)  Planned sales 
D)  Planned EOM inventory 
E)  Planned retail reductions 
A)  Planned BOM inventory 
B)  Planned net worth 
C)  Planned sales 
D)  Planned EOM inventory 
E)  Planned retail reductions

Question 6

To determine net sales,a retailer should subtract _____ from gross sales.

Accepted Answer

A)  inbound freight 
B)  returns and allowances 
C)  goodwill 
D)  an account receivable 
E)  other expenses 
A)  inbound freight 
B)  returns and allowances 
C)  goodwill 
D)  an account receivable 
E)  other expenses

Question 7

Net worth,often called owner's equity,is the difference between total assets and total liabilities.

Accepted Answer

A) True 
 B)False

Question 8

Fashion Barn's total cost valuation of inventory is $120,000 and its total retail valuation is $300,000.The adjusted retail book inventory figure has been determined to be $250,000.Using the retail method of inventory valuation,what would be Fashion Barn's approximate closing inventory figure at cost?

Accepted Answer

A)  $50,000 
B)  $70,000 
C)  $100,000 
D)  $130,000 
E)  $180,000 
A)  $50,000 
B)  $70,000 
C)  $100,000 
D)  $130,000 
E)  $180,000

Question 9

The retailer's _____ is (are)considered a current asset.

Accepted Answer

A)  buildings 
B)  fixtures 
C)  equipment 
D)  inventory 
E)  parking lots for customer use 
A)  buildings 
B)  fixtures 
C)  equipment 
D)  inventory 
E)  parking lots for customer use

Question 10

Goodwill is an intangible asset,usually based on customer loyalty.

Accepted Answer

A) True 
 B)False

Question 11

Once planned sales have been determined,the next step when developing a merchandise budget is to determine:

Accepted Answer

A)  planned monthly BOM/EOM inventories. 
B)  the buyer's planned monthly gross margin. 
C)  planned monthly retail reductions. 
D)  total planned sales for the season. 
E)  planned purchases at retail and cost. 
A)  planned monthly BOM/EOM inventories. 
B)  the buyer's planned monthly gross margin. 
C)  planned monthly retail reductions. 
D)  total planned sales for the season. 
E)  planned purchases at retail and cost.

Question 12

Current assets include cash and all other items that the retailer can easily convert into cash within a relatively short period of time (usually a year or less).

Accepted Answer

A) True 
 B)False

Question 13

Explain the components of the income statement and the interrelationships between the income statement,balance sheet and statement of cash flows.

Accepted Answer

The income statement provides a summary

Question 14

Stock overages are often due to bookkeeping errors.

Accepted Answer

A) True 
 B)False

Question 15

Current liabilities include all of the following EXCEPT:

Accepted Answer

A)  notes payable within the six months. 
B)  payroll payable. 
C)  mortgage payable. 
D)  accounts payable. 
E)  taxes payable. 
A)  notes payable within the six months. 
B)  payroll payable. 
C)  mortgage payable. 
D)  accounts payable. 
E)  taxes payable.

Question 16

The first step in developing a merchandise budget is to determine the buyer's planned profit objective for the season.

Accepted Answer

A) True 
 B)False

Question 17

_____ is (are)the difference between net sales and cost of goods sold.

Accepted Answer

A)  Gross margin 
B)  Gross sales 
C)  Operating profit 
D)  Net profit 
E)  Operating margin 
A)  Gross margin 
B)  Gross sales 
C)  Operating profit 
D)  Net profit 
E)  Operating margin

Question 18

Operating expenses include rent,wages,utilities,depreciation,and insurance.

Accepted Answer

A) True 
 B)False

Question 19

You have been asked by your boss to compute the ending inventory using the retail method.Explain the steps that you would use in calculating this.

Accepted Answer

The student should describe the three ba

Question 20

_____ are amounts that customers owe the retailer for goods and services.

Accepted Answer

A)  Total assets 
B)  Accounts receivable 
C)  Current assets 
D)  Operating expenses 
E)  Prepaid expenses 
A)  Total assets 
B)  Accounts receivable 
C)  Current assets 
D)  Operating expenses 
E)  Prepaid expenses

Fixtures and equipment are generally considered to be current assets.

A(n)_____ is any legitimate financial claim against the retailer's assets.

Planned purchases at retail is equal to:

Asha's Boats has gross sales of $300,000 and cost of goods sold of $100,000.Net sales equals $200,000.

_____ is NOT used in the merchandise budget to derive the planned purchases at retail figure.

To determine net sales,a retailer should subtract _____ from gross sales.

Net worth,often called owner's equity,is the difference between total assets and total liabilities.

The retailer's _____ is (are)considered a current asset.

Goodwill is an intangible asset,usually based on customer loyalty.

Once planned sales have been determined,the next step when developing a merchandise budget is to determine:

Current assets include cash and all other items that the retailer can easily convert into cash within a relatively short period of time (usually a year or less).

Explain the components of the income statement and the interrelationships between the income statement,balance sheet and statement of cash flows.

Stock overages are often due to bookkeeping errors.

Current liabilities include all of the following EXCEPT:

The first step in developing a merchandise budget is to determine the buyer's planned profit objective for the season.

_____ is (are)the difference between net sales and cost of goods sold.

Operating expenses include rent,wages,utilities,depreciation,and insurance.

You have been asked by your boss to compute the ending inventory using the retail method.Explain the steps that you would use in calculating this.

_____ are amounts that customers owe the retailer for goods and services.

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Merchandise Buying and Handling

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters

Exam 8: Managing a Retailer’s Finances

Fixtures and equipment are generally considered to be current assets.

A(n)_____ is any legitimate financial claim against the retailer's assets.

Planned purchases at retail is equal to:

Asha's Boats has gross sales of $300,000 and cost of goods sold of $100,000.Net sales equals $200,000.

_____ is NOT used in the merchandise budget to derive the planned purchases at retail figure.

To determine net sales,a retailer should subtract _____ from gross sales.

Net worth,often called owner's equity,is the difference between total assets and total liabilities.

The retailer's _____ is (are)considered a current asset.

Goodwill is an intangible asset,usually based on customer loyalty.

Once planned sales have been determined,the next step when developing a merchandise budget is to determine:

Current assets include cash and all other items that the retailer can easily convert into cash within a relatively short period of time (usually a year or less).

Explain the components of the income statement and the interrelationships between the income statement,balance sheet and statement of cash flows.

Stock overages are often due to bookkeeping errors.

Current liabilities include all of the following EXCEPT:

The first step in developing a merchandise budget is to determine the buyer's planned profit objective for the season.

_____ is (are)the difference between net sales and cost of goods sold.

Operating expenses include rent,wages,utilities,depreciation,and insurance.

You have been asked by your boss to compute the ending inventory using the retail method.Explain the steps that you would use in calculating this.

_____ are amounts that customers owe the retailer for goods and services.

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Merchandise Buying and Handling

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters