Exam 11: Financial Preparation for Entrepreneurial Ventures

One type of budget used by the entrepreneur is

An inventory turnover ratio of 9.80 means that the average dollar volume of inventory is used up almost _____ times during the fiscal year

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

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

After the firm has forecast its sales for the budget period

Using regression analysis to estimate the relationship between expected sales and another variable is rarely used.

Vertical analysis is the application of ratio analysis to all of the financial statements to find accounting mistakes.

The pro forma income statement is prepared before the pro forma balance sheet.

A budget is one of the most powerful tools that an entrepreneur can use in planning business operations.

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

Pro forma statements show the firm's present financial position.

Name and describe the final phase of the budget process.

The concept of the net present value method works on the premise that

Horizontal analysis looks at financial statements over time.

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

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

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

A fixed cost

Cash inflows come from

A method that discounts future cash flows at a rate that makes the net present value of the project equal to zero is known as