Question 1

Profit from the business will be included on the balance sheet in the assets section.

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

Cash flow is the same thing as profit.

Accepted Answer

A) True 
 B)False

Question 4

________ 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 5

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 6

Owner's equity represents:

Accepted Answer

A) the net worth of the business. 
B) only capital invested by the entrepreneur. 
C) everything of value owned by the firm. 
D) all assets owned by the entrepreneur. 
A) the net worth of the business. 
B) only capital invested by the entrepreneur. 
C) everything of value owned by the firm. 
D) all assets owned by the entrepreneur.

Question 7

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 8

Fixed operating expenses include all of the following except:

Accepted Answer

A) Rent 
B) Utilities 
C) Raw Materials 
D) Depreciation 
A) Rent 
B) Utilities 
C) Raw Materials 
D) Depreciation

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is likely to be a fixed cost?

Accepted Answer

A) Materials 
B) Commissions 
C) Depreciation 
D) Direct labor 
A) Materials 
B) Commissions 
C) Depreciation 
D) Direct labor

Question 11

The purpose of the pro forma sources and applications of funds statement is to show the relationship between revenue and expenses.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following software programs is most widely used by entrepreneurs?

Accepted Answer

A) Quickbooks 
B) Vision Point 
C) Peachtree 
D) all of these. 
A) Quickbooks 
B) Vision Point 
C) Peachtree 
D) all of these.

Question 13

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 14

Define the contribution margin and its importance.

Accepted Answer

Selling price minus variable costs divid

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Using the ________ method of projecting cash flow,adjustments are made to net income based on the fact that cash may not actually be received or disbursed.

Accepted Answer

A) indirect 
B) breakeven 
C) direct 
D) pro forma 
A) indirect 
B) breakeven 
C) direct 
D) pro forma

Question 17

The basic balance sheet relationship is:

Accepted Answer

A) assets plus owner's equity equal liabilities. 
B) assets equal liabilities plus owner's equity. 
C) assets plus liabilities equal owner's equity. 
D) assets equal owner's equity minus liabilities. 
A) assets plus owner's equity equal liabilities. 
B) assets equal liabilities plus owner's equity. 
C) assets plus liabilities equal owner's equity. 
D) assets equal owner's equity minus liabilities.

Question 18

Cash is a current asset.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

When developing operating and capital budgets,the entrepreneur can seek advice from experts,but should retain the final say so.

Accepted Answer

A) True 
 B)False

Profit from the business will be included on the balance sheet in the assets section.

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

Cash flow is the same thing as profit.

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

The sales budget:

Owner's equity represents:

Which of the following would be a source of funds?

Fixed operating expenses include all of the following except:

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

Which of the following is likely to be a fixed cost?

The purpose of the pro forma sources and applications of funds statement is to show the relationship between revenue and expenses.

Which of the following software programs is most widely used by entrepreneurs?

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

Define the contribution margin and its importance.

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

Using the ________ method of projecting cash flow,adjustments are made to net income based on the fact that cash may not actually be received or disbursed.

The basic balance sheet relationship is:

Cash is a current asset.

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

When developing operating and capital budgets,the entrepreneur can seek advice from experts,but should retain the final say so.

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property 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

Profit from the business will be included on the balance sheet in the assets section.

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

Cash flow is the same thing as profit.

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

The sales budget:

Owner's equity represents:

Which of the following would be a source of funds?

Fixed operating expenses include all of the following except:

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

Which of the following is likely to be a fixed cost?

The purpose of the pro forma sources and applications of funds statement is to show the relationship between revenue and expenses.

Which of the following software programs is most widely used by entrepreneurs?

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

Define the contribution margin and its importance.

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

Using the ________ method of projecting cash flow,adjustments are made to net income based on the fact that cash may not actually be received or disbursed.

The basic balance sheet relationship is:

Cash is a current asset.

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

When developing operating and capital budgets,the entrepreneur can seek advice from experts,but should retain the final say so.

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property 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