Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

A retailer has no debt (short term or long term).Its financial leverage _____.

Accepted Answer

A) equals 0 
B) equals 1 
C) equals infinity 
D) cannot be determined based on the information given 
A) equals 0 
B) equals 1 
C) equals infinity 
D) cannot be determined based on the information given B

Question 3

A retailer's planned expenditures for a given time period based on its expected performance is its _____.

Accepted Answer

A) asset turnover 
B) net worth 
C) budget 
D) sales forecast 
A) asset turnover 
B) net worth 
C) budget 
D) sales forecast C

Question 4

While _____ assets are recorded on a balance sheet on the basis of cost,_____ assets are recorded on the basis of cost less accumulated depreciation.

Accepted Answer

A) fixed;hidden 
B) fixed;current 
C) hidden;fixed 
D) current;fixed 
A) fixed;hidden 
B) fixed;current 
C) hidden;fixed 
D) current;fixed

Question 5

A retailer's success in reaching particular performance standards is best measured by _____.

Accepted Answer

A) several key business ratios 
B) the strategic profit model 
C) asset turnover 
D) the profit-and-loss statement 
A) several key business ratios 
B) the strategic profit model 
C) asset turnover 
D) the profit-and-loss statement

Question 6

Staying open longer hours,increasing the use of mail and phone orders,and purchasing goods through vendors with faster delivery times allows a retailer to _____.

Accepted Answer

A) increase its return on assets 
B) increase its profit margins 
C) increase its financial leverage 
D) decrease its return on assets 
A) increase its return on assets 
B) increase its profit margins 
C) increase its financial leverage 
D) decrease its return on assets

Question 7

A retailer can improve its cash flow through reducing the effects of seasonality and through purchasing goods from vendors with faster delivery.

Accepted Answer

A) True 
 B)False

Question 8

Top-down budgeting utilizes operating personnel in budget formulation.

Accepted Answer

A) True 
 B)False

Question 9

The major difference between the top-down and bottom-up budgeting process is the _____.

Accepted Answer

A) resulting budget amount obtained 
B) degree of employee/manager participation 
C) starting amount in the budget 
D) absence or presence of opportunity costs in the budgetary process 
A) resulting budget amount obtained 
B) degree of employee/manager participation 
C) starting amount in the budget 
D) absence or presence of opportunity costs in the budgetary process

Question 10

Cash flow management is especially important when a retailer _____.

Accepted Answer

A) is not concerned with liquidity 
B) has a highly seasonal business 
C) has low overall costs 
D) allocates expenses on the basis of sales 
A) is not concerned with liquidity 
B) has a highly seasonal business 
C) has low overall costs 
D) allocates expenses on the basis of sales

Question 11

A high accounts payable to net sales ratio indicates a retailer's use of suppliers to finance operations.

Accepted Answer

A) True 
 B)False

Question 12

A retailer's assets,liabilities,and net worth are portrayed on its _____.

Accepted Answer

A) balance sheet 
B) profit-and-loss statement 
C) budget statement 
D) sales forecast 
A) balance sheet 
B) profit-and-loss statement 
C) budget statement 
D) sales forecast

Question 13

Examples of fixed assets to a retailer are _____.

Accepted Answer

A) taxes payable,accounts payable,and mortgage interest due 
B) owner's equity,cash on hand,and inventory on hand 
C) property,store fixtures,and trucks 
D) cash on hand,inventory,and accounts receivable 
A) taxes payable,accounts payable,and mortgage interest due 
B) owner's equity,cash on hand,and inventory on hand 
C) property,store fixtures,and trucks 
D) cash on hand,inventory,and accounts receivable

Question 14

A retailer can decrease its collection period by offering its customers cash discounts.

Accepted Answer

A) True 
 B)False

Question 15

A firm's markdown strategy has the greatest impact on which ratio?

Accepted Answer

A) collection period 
B) current ratio 
C) quick ratio 
D) overall gross profit 
A) collection period 
B) current ratio 
C) quick ratio 
D) overall gross profit

Question 16

Retailers should measure productivity strictly from the perspective of cost cutting.

Accepted Answer

A) True 
 B)False

Question 17

The most severe measure of a retailer's liquidity is the _____.

Accepted Answer

A) quick ratio 
B) collection period 
C) current ratio 
D) assets to net sales ratio 
A) quick ratio 
B) collection period 
C) current ratio 
D) assets to net sales ratio

Question 18

The basic difference between the quick ratio and the current ratio is that the _____.

Accepted Answer

A) quick ratio measures liquidity while the current ratio measures profitability 
B) current ratio test is a more difficult one 
C) current ratio includes inventories and marketable securities 
D) current ratio measures only the most liquid assets 
A) quick ratio measures liquidity while the current ratio measures profitability 
B) current ratio test is a more difficult one 
C) current ratio includes inventories and marketable securities 
D) current ratio measures only the most liquid assets

Question 19

The quick ratio measures a retailer's ability to _____.

Accepted Answer

A) raise capital with a stock offering 
B) earn a satisfactory profit 
C) cover short-term liabilities 
D) turn inventory at satisfactory levels 
A) raise capital with a stock offering 
B) earn a satisfactory profit 
C) cover short-term liabilities 
D) turn inventory at satisfactory levels

Question 20

A retailer can increase its accounts payable to net sales ratio by _____.

Accepted Answer

A) increasing its inventory turnover 
B) paying accounts payable early to receive cash discounts 
C) switching to vendors with net 45 versus net 30 terms 
D) increasing its initial markup 
A) increasing its inventory turnover 
B) paying accounts payable early to receive cash discounts 
C) switching to vendors with net 45 versus net 30 terms 
D) increasing its initial markup

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

A retailer has no debt (short term or long term).Its financial leverage _____.

A retailer's planned expenditures for a given time period based on its expected performance is its _____.

While _ assets are recorded on a balance sheet on the basis of cost,_ assets are recorded on the basis of cost less accumulated depreciation.

A retailer's success in reaching particular performance standards is best measured by _____.

Staying open longer hours,increasing the use of mail and phone orders,and purchasing goods through vendors with faster delivery times allows a retailer to _____.

A retailer can improve its cash flow through reducing the effects of seasonality and through purchasing goods from vendors with faster delivery.

Top-down budgeting utilizes operating personnel in budget formulation.

The major difference between the top-down and bottom-up budgeting process is the _____.

Cash flow management is especially important when a retailer _____.

A high accounts payable to net sales ratio indicates a retailer's use of suppliers to finance operations.

A retailer's assets,liabilities,and net worth are portrayed on its _____.

Examples of fixed assets to a retailer are _____.

A retailer can decrease its collection period by offering its customers cash discounts.

A firm's markdown strategy has the greatest impact on which ratio?

Retailers should measure productivity strictly from the perspective of cost cutting.

The most severe measure of a retailer's liquidity is the _____.

The basic difference between the quick ratio and the current ratio is that the _____.

The quick ratio measures a retailer's ability to _____.

A retailer can increase its accounts payable to net sales ratio by _____.

An Introduction to Retailing

Building and Sustaining Relationships in Retailing

Strategic Planning in Retailing

Retail Institutions by Ownership

Retail Institutions by Store-Based Strategy

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

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 cash flow for a period corresponds to its sales revenue for the same period.

A retailer has no debt (short term or long term).Its financial leverage _____.

A retailer's planned expenditures for a given time period based on its expected performance is its _____.

While _____ assets are recorded on a balance sheet on the basis of cost,_____ assets are recorded on the basis of cost less accumulated depreciation.

A retailer's success in reaching particular performance standards is best measured by _____.

Staying open longer hours,increasing the use of mail and phone orders,and purchasing goods through vendors with faster delivery times allows a retailer to _____.

A retailer can improve its cash flow through reducing the effects of seasonality and through purchasing goods from vendors with faster delivery.

Top-down budgeting utilizes operating personnel in budget formulation.

The major difference between the top-down and bottom-up budgeting process is the _____.

Cash flow management is especially important when a retailer _____.

A high accounts payable to net sales ratio indicates a retailer's use of suppliers to finance operations.

A retailer's assets,liabilities,and net worth are portrayed on its _____.

Examples of fixed assets to a retailer are _____.

A retailer can decrease its collection period by offering its customers cash discounts.

A firm's markdown strategy has the greatest impact on which ratio?

Retailers should measure productivity strictly from the perspective of cost cutting.

The most severe measure of a retailer's liquidity is the _____.

The basic difference between the quick ratio and the current ratio is that the _____.

The quick ratio measures a retailer's ability to _____.

A retailer can increase its accounts payable to net sales ratio by _____.

An Introduction to Retailing

Building and Sustaining Relationships in Retailing

Strategic Planning in Retailing

Retail Institutions by Ownership

Retail Institutions by Store-Based Strategy

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

Financial Merchandise Management

Pricing in Retailing

Establishing and Maintaining a Retail Image

Promotional Strategy

Integrating and Controlling the Retail Strategy

Filters

While _ assets are recorded on a balance sheet on the basis of cost,_ assets are recorded on the basis of cost less accumulated depreciation.