Examlex

Solved

​After Firm a Acquired Firm B,it Lowered the Prices for the Goods

question 35

Multiple Choice

​After firm A acquired firm B,it lowered the prices for the goods produced by both firms.This can increase profits if the goods are


Definitions:

Merchandise Inventory

Goods that a retail or wholesale company intends to sell to customers for a profit, listed as a current asset on the balance sheet.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within a year or the operating cycle, whichever is longer.

Gross Margin Ratio

A fiscal gauge that assesses the amount of profit remaining from sales once the expenses for producing the goods have been subtracted.

Net Sales

Total revenue from sales minus returns, allowances for damaged or missing goods, and any discounts allowed.

Related Questions