Question 1

Cash is a current asset.

Accepted Answer

A) True 
 B)False  True

Question 2

For the Internet start-up,capital budgeting and operating expenses will tend to be consumed by equipment purchasing or leasing,inventory,and advertising expenses.

Accepted Answer

A) True 
 B)False  True

Question 3

Capital budgets project expenditures on:

Accepted Answer

A)  new equipment. 
B)  future production costs. 
C)  advertising. 
D)  costs of goods sold. 
A)  new equipment. 
B)  future production costs. 
C)  advertising. 
D)  costs of goods sold. A

Question 4

Using a spreadsheet software package is helpful when developing budgets as it helps to gauge the impact of different financial scenarios.

Accepted Answer

A) True 
 B)False

Question 5

To satisfy outside investors,the financial plan will need three years of projected financial data.

Accepted Answer

A) True 
 B)False

Question 6

Selling expense is an expense that can be expected to remain stable over time.

Accepted Answer

A) True 
 B)False

Question 7

An entrepreneur focuses on the operating costs before completion of the sales budget.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would be an application of funds

Accepted Answer

A)  Decrease in assets 
B)  Increase in turnover 
C)  Paying dividends 
D)  Increase in liabilities 
A)  Decrease in assets 
B)  Increase in turnover 
C)  Paying dividends 
D)  Increase in liabilities

Question 9

Cash flow:

Accepted Answer

A)  results from the differences between cash receipts and cash payments. 
B)  is the result of subtracting expenses from sales. 
C)  is the same as profit. 
D)  is the sum total of all sales at a point in time. 
A)  results from the differences between cash receipts and cash payments. 
B)  is the result of subtracting expenses from sales. 
C)  is the same as profit. 
D)  is the sum total of all sales at a point in time.

Question 10

By definition,break-even is where Total Revenue (TR)= Total Fixed Costs (TFC).

Accepted Answer

A) True 
 B)False

Question 11

Fixed assets are those that:

Accepted Answer

A)  are intangible. 
B)  include cash. 
C)  will be used over a long period of time. 
D)  are similar to loans and advances. 
A)  are intangible. 
B)  include cash. 
C)  will be used over a long period of time. 
D)  are similar to loans and advances.

Question 12

Fixed expenses:

Accepted Answer

A)  are incurred regardless of sales volume. 
B)  can be estimated by taking into consideration the production. 
C)  includes labor, raw materials, and commissions. 
D)  must be linked to strategy in the business plan. 
A)  are incurred regardless of sales volume. 
B)  can be estimated by taking into consideration the production. 
C)  includes labor, raw materials, and commissions. 
D)  must be linked to strategy in the business plan.

Question 13

Many profitable firms fail because of lack of cash.

Accepted Answer

A) True 
 B)False

Question 14

Cash flow is the same thing as profit.

Accepted Answer

A) True 
 B)False

Question 15

Pro forma sources and applications of funds summarizes all the projected sources of funds available to the venture and how these funds will be disbursed.

Accepted Answer

A) True 
 B)False

Question 16

In a cost benefit analysis of a capital expenditure the total costs associated with the expenditure is ________ the total benefits of the expenditure.

Accepted Answer

A)  multiplied by 
B)  subtracted from 
C)  divided by 
D)  added to 
A)  multiplied by 
B)  subtracted from 
C)  divided by 
D)  added to

Question 17

The first step in preparing a pro forma income statement is to separate fixed and variable costs.

Accepted Answer

A) True 
 B)False

Question 18

As long as the selling price is less than the variable cost per unit,some contribution will be made to cover fixed costs.

Accepted Answer

A) True 
 B)False

Question 19

________ represent(s)money that is owed to creditors.

Accepted Answer

A)  Assets 
B)  Cash flow 
C)  Owner equity 
D)  Liabilities 
A)  Assets 
B)  Cash flow 
C)  Owner equity 
D)  Liabilities

Question 20

Which of the following statements concerning cash flow is true

Accepted Answer

A)  Cash flow is the result of subtracting expenses from sales. 
B)  Cash flow is the same as profit. 
C)  Cash flows only when actual payments are received or made. 
D)  Profit results from the difference between actual cash receipts and cash payments. 
A)  Cash flow is the result of subtracting expenses from sales. 
B)  Cash flow is the same as profit. 
C)  Cash flows only when actual payments are received or made. 
D)  Profit results from the difference between actual cash receipts and cash payments.

Cash is a current asset.

For the Internet start-up,capital budgeting and operating expenses will tend to be consumed by equipment purchasing or leasing,inventory,and advertising expenses.

Capital budgets project expenditures on:

Using a spreadsheet software package is helpful when developing budgets as it helps to gauge the impact of different financial scenarios.

To satisfy outside investors,the financial plan will need three years of projected financial data.

Selling expense is an expense that can be expected to remain stable over time.

An entrepreneur focuses on the operating costs before completion of the sales budget.

Which of the following would be an application of funds

Cash flow:

By definition,break-even is where Total Revenue (TR)= Total Fixed Costs (TFC).

Fixed assets are those that:

Fixed expenses:

Many profitable firms fail because of lack of cash.

Cash flow is the same thing as profit.

Pro forma sources and applications of funds summarizes all the projected sources of funds available to the venture and how these funds will be disbursed.

In a cost benefit analysis of a capital expenditure the total costs associated with the expenditure is ________ the total benefits of the expenditure.

The first step in preparing a pro forma income statement is to separate fixed and variable costs.

As long as the selling price is less than the variable cost per unit,some contribution will be made to cover fixed costs.

________ represent(s)money that is owed to creditors.

Which of the following statements concerning cash flow is true

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Protecting the Idea and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

Sources of Capital

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters

Exam 10: The Financial Plan

Cash is a current asset.

For the Internet start-up,capital budgeting and operating expenses will tend to be consumed by equipment purchasing or leasing,inventory,and advertising expenses.

Capital budgets project expenditures on:

Using a spreadsheet software package is helpful when developing budgets as it helps to gauge the impact of different financial scenarios.

To satisfy outside investors,the financial plan will need three years of projected financial data.

Selling expense is an expense that can be expected to remain stable over time.

An entrepreneur focuses on the operating costs before completion of the sales budget.

Which of the following would be an application of funds

Cash flow:

By definition,break-even is where Total Revenue (TR)= Total Fixed Costs (TFC).

Fixed assets are those that:

Fixed expenses:

Many profitable firms fail because of lack of cash.

Cash flow is the same thing as profit.

Pro forma sources and applications of funds summarizes all the projected sources of funds available to the venture and how these funds will be disbursed.

In a cost benefit analysis of a capital expenditure the total costs associated with the expenditure is ________ the total benefits of the expenditure.

The first step in preparing a pro forma income statement is to separate fixed and variable costs.

As long as the selling price is less than the variable cost per unit,some contribution will be made to cover fixed costs.

________ represent(s)money that is owed to creditors.

Which of the following statements concerning cash flow is true

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Protecting the Idea and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

Sources of Capital

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters