Question 1

Sales in excess of the break-even point will result in a profit,as long as the selling price remains above the cost to produce each unit.

Accepted Answer

A) True 
 B)False

Question 2

The ________ budget is used to evaluate expenditures that will impact the business for more than one year.

Accepted Answer

A)  production 
B)  operating 
C)  depreciation 
D)  capital 
A)  production 
B)  operating 
C)  depreciation 
D)  capital

Question 3

The formula for break-even analysis is:

Accepted Answer

A)  total fixed costs divided by selling price minus variable cost per unit. 
B)  total variable costs divided by marginal contribution. 
C)  total sales divided by selling price plus variable cost per unit. 
D)  total fixed costs divided by selling price plus marginal contribution. 
A)  total fixed costs divided by selling price minus variable cost per unit. 
B)  total variable costs divided by marginal contribution. 
C)  total sales divided by selling price plus variable cost per unit. 
D)  total fixed costs divided by selling price plus marginal contribution.

Question 4

The sales budget:

Accepted Answer

A)  should be prepared before developing the pro forma income statement. 
B)  must be prepared by the venture's accounting firm. 
C)  must be based on actual sales figures for the last month. 
D)  needs to be prepared only in case of a manufacturing firm. 
A)  should be prepared before developing the pro forma income statement. 
B)  must be prepared by the venture's accounting firm. 
C)  must be based on actual sales figures for the last month. 
D)  needs to be prepared only in case of a manufacturing firm.

Question 5

Notes payable is considered a ________ on the balance sheet.

Accepted Answer

A)  cash out-flow 
B)  current asset 
C)  current liability 
D)  long-term liability 
A)  cash out-flow 
B)  current asset 
C)  current liability 
D)  long-term liability

Question 6

The pro forma balance sheet depicts the condition of the business at the end of the first year.

Accepted Answer

A) True 
 B)False

Question 7

Depreciation is considered a cash outlay,not an expense.

Accepted Answer

A) True 
 B)False

Question 8

When estimating expenses for the pro forma income statement,it is best to be conservative.

Accepted Answer

A) True 
 B)False

Question 9

________ is(are)the major source of revenue.

Accepted Answer

A)  Borrowing from banks 
B)  Outside investors' contributions 
C)  Sales 
D)  Dividends 
A)  Borrowing from banks 
B)  Outside investors' contributions 
C)  Sales 
D)  Dividends

Sales in excess of the break-even point will result in a profit,as long as the selling price remains above the cost to produce each unit.

The ________ budget is used to evaluate expenditures that will impact the business for more than one year.

The formula for break-even analysis is:

The sales budget:

Notes payable is considered a ________ on the balance sheet.

The pro forma balance sheet depicts the condition of the business at the end of the first year.

Depreciation is considered a cash outlay,not an expense.

When estimating expenses for the pro forma income statement,it is best to be conservative.

________ is(are)the major source of revenue.

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

Sales in excess of the break-even point will result in a profit,as long as the selling price remains above the cost to produce each unit.

The ________ budget is used to evaluate expenditures that will impact the business for more than one year.

The formula for break-even analysis is:

The sales budget:

Notes payable is considered a ________ on the balance sheet.

The pro forma balance sheet depicts the condition of the business at the end of the first year.

Depreciation is considered a cash outlay,not an expense.

When estimating expenses for the pro forma income statement,it is best to be conservative.

________ is(are)the major source of revenue.

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