Which of the Following Statements About Retail Buying Is FALSE

question 160

Multiple Choice

Which of the following statements about retail buying is FALSE?

• A) In most retail operations, a "resident buyer" runs his own department--and his decision is final.
• B) Most retail buyers see themselves as purchasing agents for their target customers.
• C) Retail buyers make most purchases as straight rebuys.
• D) A retail buyer is usually "open to buy" only when s/he has not spent all of the budgeted funds.
• E) Resident buyers are independent buying agents who help producers and intermediaries reach each other inexpensively.

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Definitions:

Net Income

The amount of earnings remaining for a business after subtracting all costs and expenses from total revenues, also known as net profit.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period.

Debits and Credits

Accounting terms used to record changes in accounts, where debits are entries on the left side of an account and credits are entries on the right.

Adjusting Entries

Journal entries made at the end of an accounting period to update accounts for accuracies in preparation for financial reporting.