Question 1

Which of the following is the contribution margin approach formula?

Accepted Answer

A) (SP - V
C) S - FC 
B) SP(FC - V
C) S 
C) (FC - V
C) S - SP 
D) FC = (SP - V
C)  
A) (SP - V
C) S - FC 
B) SP(FC - V
C) S 
C) (FC - V
C) S - SP 
D) FC = (SP - V
C)

Question 2

When using the internal rate of return method, the future cash flows are discounted at a rate that makes the net present value equal to

Accepted Answer

A) assets minus liabilities. 
B) assets minus owners' equity. 
C) assets minus (liabilities plus owners' equity). 
D) zero. 
A) assets minus liabilities. 
B) assets minus owners' equity. 
C) assets minus (liabilities plus owners' equity). 
D) zero.

Question 3

One type of budget used by the entrepreneur is a(n) _____ budget.

Accepted Answer

A) operating 
B) project 
C) cost 
D) R&D 
A) operating 
B) project 
C) cost 
D) R&D

Question 4

How many months of the year should be illustrated in the first pro forma income statement?

Accepted Answer

A) 3 
B) 8 
C) 6 
D) 12 
A) 3 
B) 8 
C) 6 
D) 12

Question 5

A cost that changes in the same direction and proportion to changes in operating activity is a

Accepted Answer

A) fixed cost. 
B) proportional cost. 
C) variable cost. 
D) variable receipt. 
A) fixed cost. 
B) proportional cost. 
C) variable cost. 
D) variable receipt.

Question 6

An inventory turnover ratio of 9.81 means that the average dollar volume of inventory is used up almost _____ time(s) during the fiscal year

Accepted Answer

A) 10 
B) 100 
C) 1 
D) 1.2 
A) 10 
B) 100 
C) 1 
D) 1.2

Question 7

Financial information pulls together all the information presented in the other segments of the business.

Accepted Answer

A) True 
 B)False

Question 8

Capital investments or capital expenditures are expected to last beyond one year.

Accepted Answer

A) True 
 B)False

Question 9

Ratio analysis can be applied from which of the following directions?

Accepted Answer

A) vertical only 
B) vertical and horizontal 
C) horizontal only 
D) external and internal 
A) vertical only 
B) vertical and horizontal 
C) horizontal only 
D) external and internal

Question 10

In the simple linear regression analysis equation, Y = a + bx, Y represents

Accepted Answer

A) expected sales. 
B) the dependent variable. 
C) the slope of the line. 
D) the vertical intercept. 
A) expected sales. 
B) the dependent variable. 
C) the slope of the line. 
D) the vertical intercept.

Question 11

The first step in creating an operating budget is to prepare the sales forecast.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the traditional accounting equation that verifies the accuracy of the entrepreneur's balance sheet?

Accepted Answer

A) Assets = Liabilities + Owners' Equity 
B) Assets + Liabilities = Owners' Equity 
C) Assets + Owners' Equity = Liabilities 
D) Assets = Liabilities - Owners' Equity 
A) Assets = Liabilities + Owners' Equity 
B) Assets + Liabilities = Owners' Equity 
C) Assets + Owners' Equity = Liabilities 
D) Assets = Liabilities - Owners' Equity

Question 13

Sales-to-assets measures the efficiency of total assets in generating net profit: the number of dollars in net profit produced for every $1 invested in net assets.

Accepted Answer

A) True 
 B)False

Question 14

When using trend line analysis, how many periods are required?

Accepted Answer

A) three 
B) two 
C) one 
D) five 
A) three 
B) two 
C) one 
D) five

Question 15

Comparing financial numbers in order to make decisions is referred to as

Accepted Answer

A) ratio analysis. 
B) debt reduction. 
C) comparable fractions. 
D) descriptive statistics. 
A) ratio analysis. 
B) debt reduction. 
C) comparable fractions. 
D) descriptive statistics.

Question 16

Many companies continue to use the payback method because it is

Accepted Answer

A) inexpensive to use. 
B) more favorable in its short-term effects on earnings. 
C) an immediate cash payment. 
D) a longer loan program. 
A) inexpensive to use. 
B) more favorable in its short-term effects on earnings. 
C) an immediate cash payment. 
D) a longer loan program.

Question 17

Which of the following is needed to prepare a pro forma balance sheet?

Accepted Answer

A) the last balance sheet prepared before the budget period began 
B) assets 
C) liabilities 
D) owners' equity 
A) the last balance sheet prepared before the budget period began 
B) assets 
C) liabilities 
D) owners' equity

Question 18

The handling questionable costs approach of break-even analysis was specifically designed for firms that have expenses that are difficult to assign.

Accepted Answer

A) True 
 B)False

Which of the following is the contribution margin approach formula?

When using the internal rate of return method, the future cash flows are discounted at a rate that makes the net present value equal to

One type of budget used by the entrepreneur is a(n) _____ budget.

How many months of the year should be illustrated in the first pro forma income statement?

A cost that changes in the same direction and proportion to changes in operating activity is a

An inventory turnover ratio of 9.81 means that the average dollar volume of inventory is used up almost _____ time(s) during the fiscal year

Financial information pulls together all the information presented in the other segments of the business.

Capital investments or capital expenditures are expected to last beyond one year.

Ratio analysis can be applied from which of the following directions?

In the simple linear regression analysis equation, Y = a + bx, Y represents

The first step in creating an operating budget is to prepare the sales forecast.

Which of the following is the traditional accounting equation that verifies the accuracy of the entrepreneur's balance sheet?

Sales-to-assets measures the efficiency of total assets in generating net profit: the number of dollars in net profit produced for every $1 invested in net assets.

When using trend line analysis, how many periods are required?

Comparing financial numbers in order to make decisions is referred to as

Many companies continue to use the payback method because it is

Which of the following is needed to prepare a pro forma balance sheet?

The handling questionable costs approach of break-even analysis was specifically designed for firms that have expenses that are difficult to assign.

Entrepreneurship Evolutionary Development--Revolutionary Impact

The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Social Entrepreneurship and the Global Environment for Entrepreneurship

Innovation: the Creative Pursuit of Ideas

Assessment of Entrepreneurial Opportunities

Pathways to Entrepreneurial Ventures

Sources of Capital for Entrepreneurial Ventures

Legal Challenges for Entrepreneurial Ventures

Marketing Research for Entrepreneurial Ventures

Developing an Effective Business Plan

Strategic Entrepreneurial Growth

Valuation of Entrepreneurial Ventures

Harvesting Entrepreneurial Ventures

Filters

Exam 11: Financial Preparation for Entrepreneurial Ventures

Which of the following is the contribution margin approach formula?

When using the internal rate of return method, the future cash flows are discounted at a rate that makes the net present value equal to

One type of budget used by the entrepreneur is a(n) _____ budget.

How many months of the year should be illustrated in the first pro forma income statement?

A cost that changes in the same direction and proportion to changes in operating activity is a

An inventory turnover ratio of 9.81 means that the average dollar volume of inventory is used up almost _____ time(s) during the fiscal year

Financial information pulls together all the information presented in the other segments of the business.

Capital investments or capital expenditures are expected to last beyond one year.

Ratio analysis can be applied from which of the following directions?

In the simple linear regression analysis equation, Y = a + bx, Y represents

The first step in creating an operating budget is to prepare the sales forecast.

Which of the following is the traditional accounting equation that verifies the accuracy of the entrepreneur's balance sheet?

Sales-to-assets measures the efficiency of total assets in generating net profit: the number of dollars in net profit produced for every $1 invested in net assets.

When using trend line analysis, how many periods are required?

Comparing financial numbers in order to make decisions is referred to as

Many companies continue to use the payback method because it is

Which of the following is needed to prepare a pro forma balance sheet?

The handling questionable costs approach of break-even analysis was specifically designed for firms that have expenses that are difficult to assign.

Entrepreneurship Evolutionary Development--Revolutionary Impact

The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Social Entrepreneurship and the Global Environment for Entrepreneurship

Innovation: the Creative Pursuit of Ideas

Assessment of Entrepreneurial Opportunities

Pathways to Entrepreneurial Ventures

Sources of Capital for Entrepreneurial Ventures

Legal Challenges for Entrepreneurial Ventures

Marketing Research for Entrepreneurial Ventures

Developing an Effective Business Plan

Strategic Entrepreneurial Growth

Valuation of Entrepreneurial Ventures

Harvesting Entrepreneurial Ventures

Filters