Which of the Following Is a Difference Between Off-Price Retailers

question 71

Multiple Choice

Which of the following is a difference between off-price retailers and specialty shops?

• A) Off-price retailers keep a greater amount of floor stock,whereas specialty shops keep a lower amount of floor stock.
• B) Off-price retailers charge customers higher prices,whereas specialty shops charge customers lower prices.
• C) Off-price retailers focus on lean inventory management,whereas specialty shops have an agile approach to inventory.
• D) Off-price retailers focus on providing high-quality customer service,whereas specialty shops de-emphasize customer service.

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Definitions:

U.S. GAAP

Generally Accepted Accounting Principles as practiced in the United States, a framework of accounting standards, principles, and procedures.

Reversing Temporary Difference

A temporary difference that will result in deductible amounts in future years, affecting taxable income.

Originating Temporary Difference

An originating temporary difference in accounting refers to the initial differences between the book value of an asset or liability and its tax base, which will result in taxable or deductible amounts in the future.

Permanent Difference

An accounting difference between the taxable income and accounting income that will not reverse in future periods.