5 Written Questions

1. The cash drawer of a cash register.
2. A government fee, usually a percentage of the total sale, which is added to the retail price of goods and paid by the final user.
3. The bottom number in a mathematical expression written as a fraction.
4. Gross profit minus total operating expenses.
5. The price at which merchandise ultimately sells after all markups and/or markdowns are taken.

5 Matching Questions

1. Retail price
2. Extension
3. Keystoning
4. Net sales
5. Gross profit

1. a The revenue generated from sales minus sales returns and allowances.
2. b Doubling the cost of the merchandise to arrive at the retail price.
3. c Sales revenue minus cost of merchandise sold.
4. d The result of multiplying the number of units by the cost per unit.
5. e The sum of cost plus markup; the price the customer pays for the merchandise.

5 Multiple Choice Questions

1. An amount added to the cost of goods to reach a selling price.
   1. Markdown
   2. Cost
   3. Markup
   4. Till
2. A set reduction in retail price given to an employee at the time of a sales transaction.
   1. Extension
   2. Net profit
   3. Sales income
   4. Employee discount
3. A transaction in which the customer pays for the purchase with cash or check.
   1. Cash sale
   2. Net sales
   3. Sales tax
   4. Gross sales
4. The revenue generated from sales minus sales returns and allowances.
   1. Extension
   2. Sales income
   3. Cash sale
   4. Sales tax
5. The top number in a mathematical expression written as a fraction.
   1. Denominator
   2. Extension
   3. Keystoning
   4. Numerator

5 True/False Questions

1. Change fund → A transaction in which the customer pays for the purchase with cash or check.

   True        False

2. Initial markup → The difference between merchandise cost and the selling price originally placed on the merchandise.

   True        False

3. Gross sales → Total revenue from sales before considering returns, allowances, or adjustments.

   True        False

4. Keystone markup → A markup that is equal to the cost of the merchandise.

   True        False

5. Cost → The amount a retailer pays the supplier for an item for resale.

   True        False