Suppose That a Retail Store Conducts a Mail Survey of Its

question 16

Multiple Choice

Suppose that a retail store conducts a mail survey of its customers and finds that 50% of the customers believe store personnel are "courteous." Which benchmark or comparison would be most useful for interpreting this result?

• A) The annual dollars spent at the store by those customers who believe store personnel are courteous
• B) How the 50% figure compares with that for competitors
• C) The percentage of store personnel who have completed training in customer service and public relations
• D) How the 50% figure compares with industrial or wholesale institutions and stores
• E) The percentage of store personnel who feel they are courteous to customers

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Definitions:

Gross Accounts Receivable

The total amount owed by customers to a business for goods or services provided without deducting any allowance for doubtful accounts.

Contra-Revenue Account

An account that decreases the gross amount of revenue reported on the financial statements, such as sales returns, discounts, and allowances.

Bad Debts Expense

An expense reported on the income statement, representing the amount of accounts receivable that is not expected to be collected.

Partial Balance Sheet

A partial balance sheet presents only a section of a company's financial statements, typically focusing on either assets, liabilities, or equity at a specific point in time.