Exam 9: Building Your Pro Forma Financial Statements

Revenue projections help you to understand the company's revenue drivers.

It is better to let your accountant articulate the numbers of your business idea to potential investors.

A financial statement that displays each item as a percentage of a common-base figure is called:

When we graph costs over time, we see them decreasing exponentially.

Many noncash transactions are represented in the balance sheet.

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

The first step in Revenue Projections is to calculate the median revenue of your products in the product mix.

Under the Build-Up Method, you should start with the:

In the comparable method, you look at how your company compares to industry averages and benchmark companies.

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

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

What is the best way to validate costs?

An entrepreneur must be able to ___________, if his income statement does not match the industry average?

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

The build-up method drills down revenue projections to a typical ______.

If a business is profitable and growing, which of the following is most likely to be a reason for failure?

Which of the following equations is true about the Balance Sheet under GAAP?

Seldom are revenues in retail spread evenly across the calendar year.

It is possible to have positive earnings on the income statement and a negative statement of cash flows.

Entrepreneurs who claim their estimates are "conservative" are usually overly optimistic about their ventures' future.