Chapter 12 Questions

Chapter 12 Questions - Chapter 12 Questions: 1.

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Chapter 12 Questions: 1. Which is not  a typical time frame for a profit-and-loss statement?  Your Answer: Weekly    Correct   2. Which is not  a major component of a profit-and-loss statement?  Your Answer: Depreciation    Correct   3. Property, buildings, fixtures, and equipment are examples of  Your Answer: fixed assets.    Correct   4.
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Payroll expenses payable and accounts payable are examples of  Your Answer: current liabilities.    Correct   5. Assets minus liabilities equals a retailer's  Your Answer: net worth.    Correct   6. The value of a retail business, after deducting all financial obligations, is known as  Your Answer: financial leverage.  Correct Answer: net worth.    Review section on asset management.  7.
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Which of the following will increase asset turnover? Your Answer: Outsourcing delivery operations    Correct   8. The three components of return on assets are  Your Answer: net sales, net profit after tax, and total assets.    Correct   9. Total assets divided by net worth equals  Your Answer: financial leverage.    Correct   10. A firm with a financial leverage equal to one has  Your Answer: no debt.   
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Correct   11. The strategic profit model results in a performance measure known as  Your Answer: asset turnover.  Correct Answer: return on net worth.    Review section on the strategic profit model.  12. The key business ratio found by computing cash plus accounts receivable, and then dividing by total  current liabilities is the  Your Answer: current ratio.   Correct Answer: quick ratio.    Review section on other key business ratios.  13. The key business ratio found by calculating net sales minus cost of goods sold, and then dividing by net  sales is the 
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Your Answer: overall gross profit.    Correct   14. Planned expenditures for a given time period based on expected performance are outlined in a  Your Answer: strategic profit model.  Correct Answer: budget.    Review section on budgeting.  15. After determining who is responsible for budgeting decisions, the next step in the preliminary budgeting  process is to determine Your Answer: the budgeting time frame.    Correct   16. With zero-based budgeting, a retailer Your Answer:
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  Correct   17. When planning and implementing a budget, a retailer must carefully consider  Your Answer: cash flow.    Correct   18. Capital expenditures are  Your Answer: the long-term investments in fixed assets.    Correct   19. Which measure is not
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Chapter 12 Questions - Chapter 12 Questions: 1.

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