QVC Is a Television Home Shopping Network

question 166

Multiple Choice

QVC is a television home shopping network. It generates sales of more than $8 billion from its 60 million customers by

• A)restricting purchases only through its Mall of America studio.
• B)broadcasting live 12 hours a day 365 days a year.
• C)offering more than 1,000 products each week.
• D)offering overstocked items from retailers at a fraction of the original cost.
• E)running live podcasts and live streaming over the Internet.

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Definitions:

Perpetual Inventory System

An inventory tracking system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Debit Memo

A document issued to record a reduction in the balance due from a customer, often due to a return or correction.

Gross Profit

The difference between revenue and the cost of goods sold before expenses.

Single-Step Income Statement

An income statement format that calculates net income using a single subtraction of total expenses from total revenue.