As a General Rule of Thumb, What Will a Retailer

question 85

Multiple Choice

As a general rule of thumb, what will a retailer with a high gross margin also have?

• A)an inventory management system
• B)low prices
• C)salespeople trained in cross-selling techniques
• D)high prices

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Definitions:

Periodic Cash Payments

Regular financial payments made over a stipulated period, such as dividends or loan repayments.

Depreciation Expense

Methodically spreading out the expense of a physical asset across its period of usability.

Capital Lease

A lease classified as a purchase by the lessee, whereby the lessee records the leased asset as an owned asset on the balance sheet.

Bargain Purchase Option

A lease agreement provision allowing the lessee to purchase the leased asset at a price significantly lower than its expected fair market value at the end of the lease term.