Question 1

A retailer's assets equal its ________.

Accepted Answer

A)  liabilities plus net worth 
B)  net worth less liabilities 
C)  current assets less current liabilities 
D)  net worth 
A)  liabilities plus net worth 
B)  net worth less liabilities 
C)  current assets less current liabilities 
D)  net worth A

Question 2

As part of bankruptcy protection,a retailer can ________.

Accepted Answer

A)  raise additional capital for mergers 
B)  refuse to pay bills 
C)  get out of leases 
D)  convert stock ownership to bonds 
A)  raise additional capital for mergers 
B)  refuse to pay bills 
C)  get out of leases 
D)  convert stock ownership to bonds C

Question 3

Financial leverage equals ________.

Accepted Answer

A)  total assets divided by net worth 
B)  total assets divided by total liabilities 
C)  total current assets divided by total current liabilities 
D)  (net worth - total assets) divided by net sales 
A)  total assets divided by net worth 
B)  total assets divided by total liabilities 
C)  total current assets divided by total current liabilities 
D)  (net worth - total assets) divided by net sales A

Question 4

A retailer's cash flow for a period is equal to its sales revenue for the same period.

Accepted Answer

A) True 
 B)False

Question 5

A low assets to net sales ratio represents the use of debt to finance acquisitions,growth,or stock repurchase.

Accepted Answer

A) True 
 B)False

Question 6

The expense categories that appear on a profit-and-loss statement are ________ expenses.

Accepted Answer

A)  direct 
B)  indirect 
C)  functional account 
D)  natural account 
A)  direct 
B)  indirect 
C)  functional account 
D)  natural account

Question 7

Which natural expense category is charged as an expense in the period incurred,but does not have a negative effect on cash flow?

Accepted Answer

A)  depreciation 
B)  travel 
C)  media costs 
D)  equipment rentals 
A)  depreciation 
B)  travel 
C)  media costs 
D)  equipment rentals

Question 8

a.Differentiate between zero-based and incremental budgeting.
b.Under what conditions would you use each technique?

Accepted Answer

a. Differentiate between zero-based and

Question 9

A firm's collection period is 37 days; its overall terms are 30 days.This indicates ________.

Accepted Answer

A)  slow-turning accounts receivable 
B)  fast-turning accounts receivable 
C)  average-turning accounts receivable 
D)  slow paying of accounts payable 
A)  slow-turning accounts receivable 
B)  fast-turning accounts receivable 
C)  average-turning accounts receivable 
D)  slow paying of accounts payable

Question 10

A retailer's net worth is also referred to as its ________.

Accepted Answer

A)  current assets plus fixed assets 
B)  net assets 
C)  present value of assets 
D)  owner's equity 
A)  current assets plus fixed assets 
B)  net assets 
C)  present value of assets 
D)  owner's equity

Question 11

A collection period equals ________.

Accepted Answer

A)  accounts receivable divided by net sales 
B)  [(cash + accounts receivable) divided by net sales] × 365 
C)  (accounts receivable divided by net sales) × 365 
D)  (current assets divided by net sales) × 365 
A)  accounts receivable divided by net sales 
B)  [(cash + accounts receivable) divided by net sales] × 365 
C)  (accounts receivable divided by net sales) × 365 
D)  (current assets divided by net sales) × 365

Question 12

Which are examples of fixed assets to a retailer?

Accepted Answer

A)  cash, inventory on hand, and accounts receivable 
B)  buildings, store fixtures, and real-estate 
C)  accounts receivable, sales tax receipts before required payments, and fixtures 
D)  inventory on order, fixtures, and accounts receivable 
A)  cash, inventory on hand, and accounts receivable 
B)  buildings, store fixtures, and real-estate 
C)  accounts receivable, sales tax receipts before required payments, and fixtures 
D)  inventory on order, fixtures, and accounts receivable

Question 13

A retailer can best measure its liquidity by evaluating its ________.

Accepted Answer

A)  collection period 
B)  return on net sales ratio 
C)  accounts payable to net sales ratio 
D)  quick ratio 
A)  collection period 
B)  return on net sales ratio 
C)  accounts payable to net sales ratio 
D)  quick ratio

Question 14

Total retailing expenses can be best analyzed when they are tabulated on the basis of natural account expenses.

Accepted Answer

A) True 
 B)False

Question 15

A retailer seeking to decrease its collection period should ________.

Accepted Answer

A)  decrease the frequency of mailing credit statements 
B)  reduce its debt through the sale of common stock 
C)  encourage slow-paying customers to use bank credit cards 
D)  sell assets to convert them to cash 
A)  decrease the frequency of mailing credit statements 
B)  reduce its debt through the sale of common stock 
C)  encourage slow-paying customers to use bank credit cards 
D)  sell assets to convert them to cash

Question 16

A retailer can decrease its collection period by stressing that its customers use retailer-generated credit cards.

Accepted Answer

A) True 
 B)False

Question 17

Top-down budgeting reflects a style of supervising retail employees that assumes that employees lack ambition and dislike responsibility.

Accepted Answer

A) True 
 B)False

Question 18

Opportunity costs are reflected in a profit-and-loss statement.

Accepted Answer

A) True 
 B)False

Question 19

An example of an operating expenditure is ________.

Accepted Answer

A)  depreciation 
B)  salesperson salaries 
C)  fixture costs 
D)  computer costs 
A)  depreciation 
B)  salesperson salaries 
C)  fixture costs 
D)  computer costs

Question 20

Leveraged buyouts (LBOs)are characterized by high debt.

Accepted Answer

A) True 
 B)False

A retailer's assets equal its ________.

As part of bankruptcy protection,a retailer can ________.

Financial leverage equals ________.

A retailer's cash flow for a period is equal to its sales revenue for the same period.

A low assets to net sales ratio represents the use of debt to finance acquisitions,growth,or stock repurchase.

The expense categories that appear on a profit-and-loss statement are ________ expenses.

Which natural expense category is charged as an expense in the period incurred,but does not have a negative effect on cash flow?

a.Differentiate between zero-based and incremental budgeting. b.Under what conditions would you use each technique?

A firm's collection period is 37 days; its overall terms are 30 days.This indicates ________.

A retailer's net worth is also referred to as its ________.

A collection period equals ________.

Which are examples of fixed assets to a retailer?

A retailer can best measure its liquidity by evaluating its ________.

Total retailing expenses can be best analyzed when they are tabulated on the basis of natural account expenses.

A retailer seeking to decrease its collection period should ________.

A retailer can decrease its collection period by stressing that its customers use retailer-generated credit cards.

Top-down budgeting reflects a style of supervising retail employees that assumes that employees lack ambition and dislike responsibility.

Opportunity costs are reflected in a profit-and-loss statement.

An example of an operating expenditure is ________.

Leveraged buyouts (LBOs)are characterized by high debt.

An Introduction to Retailing

Building and Sustaining Relationships in Retailing

Strategic Planning in Retailing

Retail Institutions by Ownership

Retail Institutions by Store-Based Strategy Mix

Web, nonstore-Based, and Other Forms of Nontraditional Retailing

Identifying and Understanding Consumers

Information Gathering and Processing in Retailing

Trading-Area Analysis

Site Selection

Retail Organization and Human Resource Management

Operations Management: Operational Dimensions

Developing Merchandise Plans

Implementing Merchandise Plans

Financial Merchandise Management

Pricing in Retailing

Establishing and Maintaining a Retail Image

Promotional Strategy

Integrating and Controlling the Retail Strategy

Filters

Exam 12: Operations Management: Financial Dimensions

A retailer's assets equal its ________.

As part of bankruptcy protection,a retailer can ________.

Financial leverage equals ________.

A retailer's cash flow for a period is equal to its sales revenue for the same period.

A low assets to net sales ratio represents the use of debt to finance acquisitions,growth,or stock repurchase.

The expense categories that appear on a profit-and-loss statement are ________ expenses.

Which natural expense category is charged as an expense in the period incurred,but does not have a negative effect on cash flow?

a.Differentiate between zero-based and incremental budgeting. b.Under what conditions would you use each technique?

A firm's collection period is 37 days; its overall terms are 30 days.This indicates ________.

A retailer's net worth is also referred to as its ________.

A collection period equals ________.

Which are examples of fixed assets to a retailer?

A retailer can best measure its liquidity by evaluating its ________.

Total retailing expenses can be best analyzed when they are tabulated on the basis of natural account expenses.

A retailer seeking to decrease its collection period should ________.

A retailer can decrease its collection period by stressing that its customers use retailer-generated credit cards.

Top-down budgeting reflects a style of supervising retail employees that assumes that employees lack ambition and dislike responsibility.

Opportunity costs are reflected in a profit-and-loss statement.

An example of an operating expenditure is ________.

Leveraged buyouts (LBOs)are characterized by high debt.

An Introduction to Retailing

Building and Sustaining Relationships in Retailing

Strategic Planning in Retailing

Retail Institutions by Ownership

Retail Institutions by Store-Based Strategy Mix

Web, nonstore-Based, and Other Forms of Nontraditional Retailing

Identifying and Understanding Consumers

Information Gathering and Processing in Retailing

Trading-Area Analysis

Site Selection

Retail Organization and Human Resource Management

Operations Management: Operational Dimensions

Developing Merchandise Plans

Implementing Merchandise Plans

Financial Merchandise Management

Pricing in Retailing

Establishing and Maintaining a Retail Image

Promotional Strategy

Integrating and Controlling the Retail Strategy

Filters