Financial Strategy Quiz

Which financial metric is used to evaluate how efficiently a retail company uses its assets?

• Return on Assets (ROA)

• Sales Growth

• Net Profit

• Inventory Turnover

Which of the following is a societal objective in retailing?

• Increasing gross margin

• Providing opportunities for marginalized communities

• Improving inventory turnover

• Reducing taxes

What is a personal objective a retailer might have?

• Increasing net sales

• Lowering operating expenses

• Gaining personal independence

• Reducing asset turnover

The Strategic Profit Model helps retailers:

• Measure customer satisfaction

• Forecast market demand

• Understand how decisions affect financial performance

• Predict future product trends

What is the correct formula for gross margin?

• Net Sales - Cost of Goods Sold

• Net Sales ÷ Total Assets

• Operating Profit - Taxes

• Net Income ÷ Gross Sales

The Net Sales for the month of June is 20,000 PHP while the net profit margin is 50%. How much is the Net income?

• 10,000 PHP

• 15,000 PHP

• 15,000 PHP

• 8,000 PHP

What is another term for SG&A expenses?

• Product expenses

• Marketing revenue

• Operating expenses

• Profit before tax

What does the net profit margin include?

• Only COGS

• Only total revenue

• Operating and non-operating income/expenses

• Total liabilities

Asset turnover is calculated by dividing:

• Total Assets by Net Profit

• Sales by Average Assets

• Net Income by Gross Margin

• Inventory by Sales

An increase in inventory turnover means:

• Higher storage cost

• Faster movement of inventory

• Increase in unsold stock

• Decrease in demand