Question 1

By closing your sales for credit, you can increase your company's cash flow.

Accepted Answer

A) True 
 B)False

Question 2

The expense of acquiring land should appear in full on your annual income statement.

Accepted Answer

A) True 
 B)False

Question 3

Approximately how many subsections in the section of the planning process should your explanation of the financial statements have, if you follow the model in the chapter?

Accepted Answer

A) 1 
B) 3 
C) 4 
D) 7 
E) 8 
A) 1 
B) 3 
C) 4 
D) 7 
E) 8

Question 4

An accumulated depreciation line item on your balance sheet shows how much of the asset has been:

Accepted Answer

A) Used up 
B) Acquired 
C) Written-off 
D) None of the above 
E) All of the above 
A) Used up 
B) Acquired 
C) Written-off 
D) None of the above 
E) All of the above

Question 5

The following are examples of operating expenses, except:

Accepted Answer

A) Property purchases 
B) Rent expenses 
C) Interest expenses 
D) Salaries 
E) Administrative expenses 
A) Property purchases 
B) Rent expenses 
C) Interest expenses 
D) Salaries 
E) Administrative expenses

Question 6

The income statement shows the standing of a company at any given point of time.

Accepted Answer

A) True 
 B)False

Question 7

Explain the comparable method.

Accepted Answer

a.In the comparable method, you look at

Question 8

The chapter says financial statements are obsolete immediately after they come off the printer.Why?

Accepted Answer

a.Once the business is operating, the na

Question 9

An optimistic attitude about your business's future helps achieve positive cash flow sooner.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following columns is not included in the revenue worksheet?

Accepted Answer

A) Product/Service Description 
B) Price 
C) Units Sold 
D) Units Ordered 
E) Total Revenue 
A) Product/Service Description 
B) Price 
C) Units Sold 
D) Units Ordered 
E) Total Revenue

Question 11

Pro-forma financials often project sales occurring 5 years in the future.

Accepted Answer

A) True 
 B)False

Question 12

If, after all calculations, your balance sheet does not balance, you should adjust retained earnings accordingly.

Accepted Answer

A) True 
 B)False

Question 13

Financial analysis is simply the mathematical expression of an overall business strategy.

Accepted Answer

A) True 
 B)False

Question 14

In financial analysis, the step that follows forecasting revenues and expenses is formulating a cash flow statement from those forecasts.

Accepted Answer

A) True 
 B)False

Question 15

In the build-up method, after you identify all your revenue sources, what is the next step?

Accepted Answer

A) Identify all your costs 
B) Think about how much revenue you can generate in a year 
C) Determine operating expenses by the most appropriate time frame 
D) Break down revenue into a typical day 
E) Write a two- to three- page description of financial statements 
A) Identify all your costs 
B) Think about how much revenue you can generate in a year 
C) Determine operating expenses by the most appropriate time frame 
D) Break down revenue into a typical day 
E) Write a two- to three- page description of financial statements

Question 16

Under rare occasions, we may introduce additional elements to the balance sheet equation.

Accepted Answer

A) True 
 B)False

Question 17

The standard term for most business plans is:

Accepted Answer

A) 2 years 
B) 4 years 
C) 5 years 
D) 8 years 
E) Until the break-even date 
A) 2 years 
B) 4 years 
C) 5 years 
D) 8 years 
E) Until the break-even date

Question 18

Different companies may calculate COGS differently, even if their actual costs are identical.

Accepted Answer

A) True 
 B)False

Question 19

What is the importance of building integrated financial statements?

Accepted Answer

a.The income statement, cash flow, and b

Question 20

The process of examining and reexamining your assumptions over and over is a waste of time

Accepted Answer

A) True 
 B)False

By closing your sales for credit, you can increase your company's cash flow.

The expense of acquiring land should appear in full on your annual income statement.

Approximately how many subsections in the section of the planning process should your explanation of the financial statements have, if you follow the model in the chapter?

An accumulated depreciation line item on your balance sheet shows how much of the asset has been:

The following are examples of operating expenses, except:

The income statement shows the standing of a company at any given point of time.

Explain the comparable method.

The chapter says financial statements are obsolete immediately after they come off the printer.Why?

An optimistic attitude about your business's future helps achieve positive cash flow sooner.

Which of the following columns is not included in the revenue worksheet?

Pro-forma financials often project sales occurring 5 years in the future.

If, after all calculations, your balance sheet does not balance, you should adjust retained earnings accordingly.

Financial analysis is simply the mathematical expression of an overall business strategy.

In financial analysis, the step that follows forecasting revenues and expenses is formulating a cash flow statement from those forecasts.

In the build-up method, after you identify all your revenue sources, what is the next step?

Under rare occasions, we may introduce additional elements to the balance sheet equation.

The standard term for most business plans is:

Different companies may calculate COGS differently, even if their actual costs are identical.

What is the importance of building integrated financial statements?

The process of examining and reexamining your assumptions over and over is a waste of time

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

Building the Founding Team

The Business Planning Process

Facing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Debt and Other Forms of Financing

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship: an Overview

Filters

Exam 8: Building Your Pro Forma Financial Statements

By closing your sales for credit, you can increase your company's cash flow.

The expense of acquiring land should appear in full on your annual income statement.

Approximately how many subsections in the section of the planning process should your explanation of the financial statements have, if you follow the model in the chapter?

An accumulated depreciation line item on your balance sheet shows how much of the asset has been:

The following are examples of operating expenses, except:

The income statement shows the standing of a company at any given point of time.

Explain the comparable method.

The chapter says financial statements are obsolete immediately after they come off the printer.Why?

An optimistic attitude about your business's future helps achieve positive cash flow sooner.

Which of the following columns is not included in the revenue worksheet?

Pro-forma financials often project sales occurring 5 years in the future.

If, after all calculations, your balance sheet does not balance, you should adjust retained earnings accordingly.

Financial analysis is simply the mathematical expression of an overall business strategy.

In financial analysis, the step that follows forecasting revenues and expenses is formulating a cash flow statement from those forecasts.

In the build-up method, after you identify all your revenue sources, what is the next step?

Under rare occasions, we may introduce additional elements to the balance sheet equation.

The standard term for most business plans is:

Different companies may calculate COGS differently, even if their actual costs are identical.

What is the importance of building integrated financial statements?

The process of examining and reexamining your assumptions over and over is a waste of time

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

Building the Founding Team

The Business Planning Process

Facing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Debt and Other Forms of Financing

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship: an Overview

Filters