Which of the Following Is NOT Retailing

question 103

Multiple Choice

Which of the following is NOT retailing?

• A)A vacuum cleaner manufacturer hires its own sales force to sell door to door.
• B)A private ambulance service takes an accident victim to a hospital and charges him $100.
• C)A group of students sell donuts to people passing by their dorm.
• D)A book wholesaler has a mail-order catalog which offers discounts to final consumers who buy by mail.
• E)A company purchases computers and resells them to local businesses.

Understand the impact of credit card sales and discounts on financial statements.

Recognize effective internal controls for cash management.

Understand the classification and reporting of cash equivalents on the balance sheet.

Understand different environmental worldviews including anthropocentric, deep ecology, and planetary management.

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Definitions:

Current Ratio

A financial ratio indicating a firm's capacity to settle short-term liabilities using its short-term assets.

Noncurrent Assets

Long-term assets not expected to be converted into cash within one year, such as property, plant, and equipment.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the owners' claim on the company's assets.

Inventory Turnover

A financial ratio indicating how many times a company has sold and replaced inventory over a specific period.