Question 1

Libby's Leather Goods has total assets of $350,000, current assets of $74,000, total liabilities of $280,000, accounts receivable of $12,000, net sales of $64,000, and net profit after taxes of $23,000. Calculate the retailer's net profit margin.

Accepted Answer

A)   20 percent
B)   35.9 percent
C)   25 percent
D)   31.08 percent
E)   18.75 percentF) C) and D)
G) A) and B)

Question 2

Upseedaisees is popular loungewear that prides itself on its versatility. Last year, its net sales were $1,450,000 with cost of goods of $353,000. Taxes totalled $61,650. The company's expenses totalled $960,000. Calculate the company's net profit margin.

Accepted Answer

A)   12.5 percent
B)   24.3 percent
C)   90.5 percent
D)   8.8 percent
E)   5.2 percentF) B) and E)
G) All of the above

Question 3

How can you calculate owners' equity?

Accepted Answer

A)   Total assets minus cost of goods sold
B)   Cost of goods sold minus net sales
C)   Gross sales minus (customer returns and customer allowances) 
D)   Total assets minus total liabilities
E)   Total liabilities plus total assetsF) B) and E)
G) All of the above

Question 4

All of the following are considered "assets" EXCEPT:

Accepted Answer

A)   Merchandise inventory
B)   Accounts receivables
C)   Supplies
D)   Notes payable
E)   CashF) A) and C)
G) A) and E)

Question 5

Harriet's is a bookstore for people who love mysteries. How would a complete set of P. D. James mystery novels, a first edition copy of The Maltese Falcon, the money in the
Cash register, and an IOU from a loyal customer who forgot her wallet one day when she came to purchase the latest Margaret Atwood book be listed on the store's balance sheet?

Accepted Answer

A)   Fixed assets
B)   Current liabilities
C)   Current assets
D)   Long-term liabilities
E)   Owners' equityF) A) and B)
G) B) and C)

Question 6

How do you calculate net sales?

Accepted Answer

A)   Combine the total customer returns, customer sales, and customer allowances
B)   Add operating expense and interest expense; then subtract from gross sales
C)   Subtract cost of goods sold from gross sales
D)   Subtract customer returns from gross sales and add promotional allowances from vendors
E)   Subtract gross profits from promotional allowancesF) B) and E)
G) None of the above

Question 7

Which of the following is an example of a current liability?

Accepted Answer

A)   Accounts receivable
B)   Fixtures
C)   Accounts payable
D)   Merchandise
E)   EquipmentF) A) and B)
G) None of the above

Question 8

Which of the following is an example of a retail operating expense?

Accepted Answer

A)   Commissions sales
B)   Office supplies
C)   Staff salaries
D)   Rent
E)   All of theseF) B) and C)
G) A) and B)

Question 9

The strategic profit model is a method for summarizing the factors found in the income statement and balance sheet that affect a firm's financial performance as measured by ________.

Accepted Answer

A)   return on equity
B)   inventory turnover
C)   gross margin
D)   cost of goods sold
E)   return on assetsF) A) and B)
G) D) and E)

Question 10

Which of the following is an example of an accrued liability for a florist?

Accepted Answer

A)   Employees' salaries
B)   Its refrigeration cases
C)   Its inventory of long-stemmed roses
D)   Payment due to a supplier
E)   Its funeral displaysF) B) and D)
G) A) and C)

Question 11

Which of the following is not an example of a fixed asset for a lawn care service?

Accepted Answer

A)   The trucks used to haul away debris
B)   Its accounts receivable
C)   The plant nursery owned by the service
D)   The bucket truck it uses to do tree surgery
E)   A computer which is used to manage the store's inventoryF) B) and D)
G) A) and E)

Question 12

The Bookstore Café is a small restaurant located near a downtown business district. It is opened for breakfast and lunch and serves simple yet nutritious meals, as well as books from the Globe and Mail bestseller list. How would you categorize the book inventory, cooking equipment, tables, chairs, and the register?

Accepted Answer

A)   Investor capital
B)   Owners' equity
C)   Assets
D)   Current liabilities
E)   Retained earningsF) D) and E)
G) A) and B)

Exam 8: Financial Strategy

How can you calculate owners' equity?

Correct Answer
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Correct Answer
verified

Which of the following is an example of a retail operating expense?

Correct Answer
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Which of the following is an example of an accrued liability for a florist?

Correct Answer
verified

Which of the following is an example of a current liability?

Correct Answer
verified

Upseedaisees is popular loungewear that prides itself on its versatility. Last year, its net sales were $1,450,000 with cost of goods of $353,000. Taxes totalled $61,650. The company's expenses totalled $960,000. Calculate the company's net profit margin.

Correct Answer
verified

The strategic profit model is a method for summarizing the factors found in the income statement and balance sheet that affect a firm's financial performance as measured by ________.

Correct Answer
verified

How do you calculate net sales?

Correct Answer
verified

All of the following are considered "assets" EXCEPT:

Correct Answer
verified

Which of the following is not an example of a fixed asset for a lawn care service?

Correct Answer
verified

Correct Answer
verified

Libby's Leather Goods has total assets of $350,000, current assets of $74,000, total liabilities of $280,000, accounts receivable of $12,000, net sales of $64,000, and net profit after taxes of $23,000. Calculate the retailer's net profit margin.

Correct Answer
verified

Exam 8: Financial Strategy

How can you calculate owners' equity?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is an example of a retail operating expense?

Correct AnswerverifiedShow Answer

Which of the following is an example of an accrued liability for a florist?

Correct AnswerverifiedShow Answer

Which of the following is an example of a current liability?

Correct AnswerverifiedShow Answer

Upseedaisees is popular loungewear that prides itself on its versatility. Last year, its net sales were $1,450,000 with cost of goods of $353,000. Taxes totalled $61,650. The company's expenses totalled $960,000. Calculate the company's net profit margin.

Correct AnswerverifiedShow Answer

The strategic profit model is a method for summarizing the factors found in the income statement and balance sheet that affect a firm's financial performance as measured by ________.

Correct AnswerverifiedShow Answer

How do you calculate net sales?

Correct AnswerverifiedShow Answer

All of the following are considered "assets" EXCEPT:

Correct AnswerverifiedShow Answer

Which of the following is not an example of a fixed asset for a lawn care service?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Libby's Leather Goods has total assets of $350,000, current assets of $74,000, total liabilities of $280,000, accounts receivable of $12,000, net sales of $64,000, and net profit after taxes of $23,000. Calculate the retailer's net profit margin.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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