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Chapter 12
Which is not a typical time frame for a profit-and-loss statement?
Correct Answer: Weekly
Which is not a major component of a profit-and-loss statement?
Your Answer: Depreciation
Property, buildings, fixtures, and equipment are examples of
Your Answer: fixed assets.
Payroll expenses payable and accounts payable are examples of
Your Answer: current liabilities.
Assets minus liabilities equals a retailer's
Correct Answer: net worth.
The value of a retail business, after deducting all financial obligations, is known as
Your Answer: net worth.
Which of the following will increase asset turnover?
Correct Answer: Outsourcing delivery operations
The three components of return on assets are
Correct Answer: net sales, net profit after tax, and total assets.
Total assets divided by net worth equals
Correct Answer: financial leverage.
A firm with a financial leverage equal to one has
Your Answer: no debt.
The strategic profit model results in a performance measure known as
Your Answer: return on net worth.
The key business ratio found by computing cash plus accounts receivable, and then dividing by total current liabilities is the
Correct Answer: quick ratio.
The key business ratio found by calculating net sales minus cost of goods sold, and then dividing by net sales is the
Correct Answer: overall gross profit.
Planned expenditures for a given time period based on expected performance are outlined in a
Correct Answer: budget.
After determining who is responsible for budgeting decisions, the next step in the preliminary budgeting process is to determine
Correct Answer: the budgeting time frame.
With zero-based budgeting, a retailer
Correct Answer: starts each new budget from scratch.
When planning and implementing a budget, a retailer must carefully consider
Correct Answer: cash flow.
Capital expenditures are
Correct Answer: the long-term investments in fixed assets.
Which measure is not used to describe a retailer's productivity?
Which is not a typical time frame for a profit-and-loss statement?
Correct Answer: Weekly
Which is not a major component of a profit-and-loss statement?
Your Answer: Depreciation
Property, buildings, fixtures, and equipment are examples of
Your Answer: fixed assets.
Payroll expenses payable and accounts payable are examples of
Your Answer: current liabilities.
Assets minus liabilities equals a retailer's
Correct Answer: net worth.
The value of a retail business, after deducting all financial obligations, is known as
Your Answer: net worth.
Which of the following will increase asset turnover?
Correct Answer: Outsourcing delivery operations
The three components of return on assets are
Correct Answer: net sales, net profit after tax, and total assets.
Total assets divided by net worth equals
Correct Answer: financial leverage.
A firm with a financial leverage equal to one has
Your Answer: no debt.
The strategic profit model results in a performance measure known as
Your Answer: return on net worth.
The key business ratio found by computing cash plus accounts receivable, and then dividing by total current liabilities is the
Correct Answer: quick ratio.
The key business ratio found by calculating net sales minus cost of goods sold, and then dividing by net sales is the
Correct Answer: overall gross profit.
Planned expenditures for a given time period based on expected performance are outlined in a
Correct Answer: budget.
After determining who is responsible for budgeting decisions, the next step in the preliminary budgeting process is to determine
Correct Answer: the budgeting time frame.
With zero-based budgeting, a retailer
Correct Answer: starts each new budget from scratch.
When planning and implementing a budget, a retailer must carefully consider
Correct Answer: cash flow.
Capital expenditures are
Correct Answer: the long-term investments in fixed assets.
Which measure is not used to describe a retailer's productivity?