Question 1

________ is the amount owners have invested and/or retained from the venture operations.

Accepted Answer

A)  Cash flow 
B)  Retained earnings 
C)  Profit 
D)  Owner's equity 
A)  Cash flow 
B)  Retained earnings 
C)  Profit 
D)  Owner's equity

Question 2

If the total fixed costs are $850,000,the sale price is $110 and the variable cost per unit is 25,what is the break-even volume

Accepted Answer

A)  17,000 
B)  10,000 
C)  7,000 
D)  1,000 
A)  17,000 
B)  10,000 
C)  7,000 
D)  1,000

Question 3

Which of the following statements concerning financial software is not true

Accepted Answer

A)  A spreadsheet program may be the easiest to use since numbers rarely change during the budget process. 
B)  Start-ups are recommended to use simple software that is easy to use. 
C)  Financial software helps the entrepreneur maintain the books and generate financial statements. 
D)  There are many software packages that vary in price and complexity. 
A)  A spreadsheet program may be the easiest to use since numbers rarely change during the budget process. 
B)  Start-ups are recommended to use simple software that is easy to use. 
C)  Financial software helps the entrepreneur maintain the books and generate financial statements. 
D)  There are many software packages that vary in price and complexity.

Question 4

In projecting operating expenses for the second and third year costs like ________ are likely to remain stable unless new equipment or additional space is purchased.

Accepted Answer

A)  cost of goods sold 
B)  gross profit 
C)  advertising 
D)  insurance 
A)  cost of goods sold 
B)  gross profit 
C)  advertising 
D)  insurance

Question 5

Large positive cash flows usually occur in the first months of a new venture.

Accepted Answer

A) True 
 B)False

Question 6

What is a pro forma sources and applications of funds statement
 Give examples of sources and uses of funds.

Accepted Answer

Summarizes all the projected sources of

Question 7

________ is a cash disbursement and ________ is/are an operating expense.

Accepted Answer

A)  Debt; interest 
B)  Amortization; salaries 
C)  Depreciation; rent 
D)  Depreciation; cost of goods sold 
A)  Debt; interest 
B)  Amortization; salaries 
C)  Depreciation; rent 
D)  Depreciation; cost of goods sold

Question 8

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

Accepted Answer

A)  pro forma income statement 
B)  pro forma sources and applications of funds statement 
C)  break-even analysis 
D)  cash flow statement 
A)  pro forma income statement 
B)  pro forma sources and applications of funds statement 
C)  break-even analysis 
D)  cash flow statement

Question 9

Equipment would be included on the balance sheet in which section

Accepted Answer

A)  Current assets 
B)  Fixed assets 
C)  Retained earnings 
D)  Owner's equity 
A)  Current assets 
B)  Fixed assets 
C)  Retained earnings 
D)  Owner's equity

Question 10

Identify the basic formula of a balance sheet and give an example of an item that might fall under each major component of the formula.
A.Assets = liabilities + owners equity
B.Assets - two categories

Accepted Answer

1.Current - include cash and anything el

Question 11

The indirect method of projecting cash flow is the most popular.

Accepted Answer

A) True 
 B)False

Question 12

The purpose of the pro forma sources and applications of funds statement is to show the amount owners have invested and/or retained from the venture operations.

Accepted Answer

A) True 
 B)False

Question 13

Inventory is considered a source of funds because of the revenue it brings in.

Accepted Answer

A) True 
 B)False

Question 14

As long as the selling price is greater than the ________ cost per unit,some contribution can be made to cover ________.

Accepted Answer

A)  fixed; variable costs 
B)  variable; fixed costs 
C)  total; expenses 
D)  fixed; negative cash flow 
A)  fixed; variable costs 
B)  variable; fixed costs 
C)  total; expenses 
D)  fixed; negative cash flow

Question 15

Break-even analysis is a technique to determine the total liabilities of the firm.

Accepted Answer

A) True 
 B)False

Question 16

One of the simplest and probably the most widely used small business accounting software package is Intuit's Quickbooks.

Accepted Answer

A) True 
 B)False

Question 17

The cost of goods sold expense can be determined either by directly computing the variable cost of producing a unit times the number of units sold or by using an industry standard percentage of sales.

Accepted Answer

A) True 
 B)False

Question 18

Fixed expenses are incurred regardless of sales volume.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following would be a source of funds

Accepted Answer

A)  An equipment purchase 
B)  Retiring a long term liability 
C)  Inventory 
D)  Personal funds of founders 
A)  An equipment purchase 
B)  Retiring a long term liability 
C)  Inventory 
D)  Personal funds of founders

Question 20

Explain negative cash flow.How can a profitable firm have negative cash flow

Accepted Answer

One of the major problems that new ventu

________ is the amount owners have invested and/or retained from the venture operations.

If the total fixed costs are $850,000,the sale price is $110 and the variable cost per unit is 25,what is the break-even volume

Which of the following statements concerning financial software is not true

In projecting operating expenses for the second and third year costs like ________ are likely to remain stable unless new equipment or additional space is purchased.

Large positive cash flows usually occur in the first months of a new venture.

What is a pro forma sources and applications of funds statement Give examples of sources and uses of funds.

is a cash disbursement and is/are an operating expense.

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

Equipment would be included on the balance sheet in which section

Identify the basic formula of a balance sheet and give an example of an item that might fall under each major component of the formula. A.Assets = liabilities + owners equity B.Assets - two categories

The indirect method of projecting cash flow is the most popular.

The purpose of the pro forma sources and applications of funds statement is to show the amount owners have invested and/or retained from the venture operations.

Inventory is considered a source of funds because of the revenue it brings in.

As long as the selling price is greater than the cost per unit,some contribution can be made to cover .

Break-even analysis is a technique to determine the total liabilities of the firm.

One of the simplest and probably the most widely used small business accounting software package is Intuit's Quickbooks.

The cost of goods sold expense can be determined either by directly computing the variable cost of producing a unit times the number of units sold or by using an industry standard percentage of sales.

Fixed expenses are incurred regardless of sales volume.

Which of the following would be a source of funds

Explain negative cash flow.How can a profitable firm have negative cash flow

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

________ is the amount owners have invested and/or retained from the venture operations.

If the total fixed costs are $850,000,the sale price is $110 and the variable cost per unit is 25,what is the break-even volume

Which of the following statements concerning financial software is not true

In projecting operating expenses for the second and third year costs like ________ are likely to remain stable unless new equipment or additional space is purchased.

Large positive cash flows usually occur in the first months of a new venture.

What is a pro forma sources and applications of funds statement Give examples of sources and uses of funds.

________ is a cash disbursement and ________ is/are an operating expense.

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

Equipment would be included on the balance sheet in which section

Identify the basic formula of a balance sheet and give an example of an item that might fall under each major component of the formula. A.Assets = liabilities + owners equity B.Assets - two categories

The indirect method of projecting cash flow is the most popular.

The purpose of the pro forma sources and applications of funds statement is to show the amount owners have invested and/or retained from the venture operations.

Inventory is considered a source of funds because of the revenue it brings in.

As long as the selling price is greater than the ________ cost per unit,some contribution can be made to cover ________.

Break-even analysis is a technique to determine the total liabilities of the firm.

One of the simplest and probably the most widely used small business accounting software package is Intuit's Quickbooks.

The cost of goods sold expense can be determined either by directly computing the variable cost of producing a unit times the number of units sold or by using an industry standard percentage of sales.

Fixed expenses are incurred regardless of sales volume.

Which of the following would be a source of funds

Explain negative cash flow.How can a profitable firm have negative cash flow

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

is a cash disbursement and is/are an operating expense.

As long as the selling price is greater than the cost per unit,some contribution can be made to cover .