Income Statement
Advertising expenses and rent are an example of what type of expense on the income statement?
Operating expenses
Assets + Liabilities = Owner's Equity is the accounting equation. True or False?
Assets = Liabilities + Owner's Equity
Assets - Liabilities = OE
Assets - OE = Liabilities
______ is a good, service or idea that is created for the purpose of satisfying a need or want.
A person who has an unfulfilled desire AND is financially able and willing to satisfy that desire is part of a _____.
Market
What is the formula to find Gross Profit?
Sales - COGS = Gross Profit
Items of value to the company are listed on the balance sheet as _________.
Assets
Marketing Mix
A group of customers the business seeks to attract is also known as the ______________.
Target market
What's another name for the income statement?
Earnings statement, operating statement, profit and loss statement
Name 2 short-term liabilities.
Taxes, wages/salaries, accounts payable, depreciation
_______ is a short striking phrase used in advertising. "Just Do It"
Slogan
What is the difference between mass marketing and segment marketing?
Mass appeals to a large group of people, standardized products with little tailored marketing approach. Segment marketing is the tailoring of products/communication to a specific subset of people.
Shipping charges for distributing the company's product is an example of an operating expense. True or False?
False. COGS - anything dealing with production/shipping is COGS.
What is the difference between a current (short-term) asset vs a fixed asset?
Liquidity. Current assets can be used in its entirety in under 1 year or less (cash, accounts receivable). Fixed assets have a useful life of more than 1 year - land, machinery, buildings, vehicles.
__________ is when the company has to have the product in the right quantities at the right time at the right location.
Place/Distribution.
Name 3 of the 4 market segmentations.
Demographic, psychographic, behavioral, geographic
COGS = $50
Rent = $5
Salaries = $10
What is net income/loss?
$135 of Net Income.
Danny’s Pizza Shop bought $100 in equipment and supplies on credit. It also has $200 in cash and other assets. What is the total amount of owner’s equity in the Pizza Shop?
$200.
Total Assets = $100 equipment, $200 cash
Liabilities = $100 bought equipment on credit
Assets - Liabilities = O/E = $200
Describe and define 2 of the 4 P's of the Marketing Mix.
Product
Price
Promotion
Place
Name 2 identifiers within the psychographic segment that marketers will use to group consumers.
Name 2 identifiers within the behavioral segment that marketers will use to group consumers.
Hobbies, lifestyle choices (fashion, music taste), general attitude/personality of buyer, travel tendencies
Usage rate of products, loyalty response, occasion response