Retailers Can Assess a Particular Store's Sales Effectiveness by Looking

question 67

Multiple Choice

Retailers can assess a particular store's sales effectiveness by looking at (1) the number of people passing by on an average day; (2) the _________; (3) the percentage of those entering who buy; and (4) the average amount spent per sale.

• A) percentage of customers who bought merchandise on "sale"
• B) total units sold per day
• C) total dollar sales per day
• D) percentage of those who buy full-price merchandise
• E) percentage who enter the store

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Definitions:

Accounts Receivable

Represents money owed to a company by its customers for goods or services delivered but not yet paid for.

Indirect Method

A way of calculating cash flows for operational activities by starting with net income and adjusting for non-cash transactions.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from revenues.

Direct Method

A method of preparing the cash flow statement where actual cash flow information from the company’s operations segment is used directly.