Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Net Sales

Financial Accounting

4. Merchandising Operations

Net Sales

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Multiple Choice

Which of the following provides the best quantitative evidence of whether a company's present strategy is working well?

A high number of new product launches

A larger advertising budget

A steady increase in net sales over time

An increase in the number of employees

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Verified step by step guidance

Understand the question: The problem is asking for the best quantitative evidence to evaluate whether a company's current strategy is effective. Quantitative evidence refers to measurable data, often expressed in numerical terms.

Analyze the options: Review each option provided and determine whether it offers measurable and relevant data to assess the company's strategy. For example, 'a high number of new product launches' is qualitative and does not directly measure success, while 'a steady increase in net sales over time' is quantitative and directly reflects financial performance.

Focus on financial metrics: In Financial Accounting, net sales are a key indicator of a company's revenue generation and overall performance. A steady increase in net sales over time suggests that the company's strategy is driving consistent growth.

Eliminate irrelevant options: Options like 'a larger advertising budget' and 'an increase in the number of employees' are not direct measures of strategy effectiveness. They may indicate operational changes but do not provide clear evidence of success.

Conclude the reasoning: The correct answer is 'a steady increase in net sales over time' because it provides measurable, quantitative evidence of the company's strategy working well, reflecting improved financial performance over time.