Beauty Business FREE Beauty Business Salon Financial Management Questions and Answers 2

Question 1

What is the recommended percentage of gross revenue a salon should allocate to payroll expenses?

Accepted Answer

40-50%

Answer

60-70%

Answer

25-35%

Answer

80-90%

Question 2

Which financial document shows a salon's assets, liabilities, and owner's equity at a specific point in time?

Accepted Answer

Balance sheet

Answer

Income statement

Answer

Cash flow statement

Answer

Profit and loss report

Question 3

What does the term 'service ticket average' refer to in salon financial management?

Accepted Answer

The average revenue generated per client visit

Answer

The cost of supplies per service

Answer

The price of the most popular service

Answer

The total daily revenue divided by staff count

Question 4

A salon owner notices retail sales have dropped 15% over three months. Which metric should they examine first?

Accepted Answer

Retail-to-service ratio

Answer

Employee turnover rate

Answer

Building lease terms

Answer

Social media followers

Question 5

What is the primary purpose of maintaining a cash reserve fund for a salon business?

Accepted Answer

To cover unexpected expenses and slow business periods

Answer

To invest in stock market opportunities

Answer

To pay annual bonuses to employees

Answer

To fund advertising campaigns

Question 6

When calculating the break-even point for a new salon, which formula is correct?

Accepted Answer

Fixed costs divided by contribution margin per service

Answer

Total revenue minus total expenses

Answer

Net profit divided by number of clients

Answer

Gross revenue multiplied by tax rate