Question 1

Which of the following would be considered a variable expense?

Accepted Answer

A) Rent 
B) Raw materials 
C) Interest 
D) Insurance 
A) Rent 
B) Raw materials 
C) Interest 
D) Insurance

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 breakeven 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

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 4

Which of the following would not be a current asset?

Accepted Answer

A) Certificates of deposit that mature in six months 
B) Customer receivables 
C) Cash 
D) Supplier bills payable in thirty days 
A) Certificates of deposit that mature in six months 
B) Customer receivables 
C) Cash 
D) Supplier bills payable in thirty days

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

In projecting the operating expenses for the second and third year,it is helpful to first look at those expenses that will likely change over time.

Accepted Answer

A) True 
 B)False

Question 7

Many profitable firms fail because of lack of cash.

Accepted Answer

A) True 
 B)False

Question 8

Any amount due within a year is considered a current liability.

Accepted Answer

A) True 
 B)False

Question 9

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 10

______ is/are 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 11

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 12

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 13

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 14

The _____ budget is used to project cash flows for the cost of goods produced.

Accepted Answer

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

Question 15

Define capital budgeting.

Accepted Answer

Capital budgets are intended to provide

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

The pro forma cash flow,like the _________,is based on best estimates.

Accepted Answer

A) business cash flow at a certain point of time 
B) expense statement 
C) income statement 
D) actual cash flow statement 
A) business cash flow at a certain point of time 
B) expense statement 
C) income statement 
D) actual cash flow statement

Question 18

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

Accepted Answer

Summarizes all the projected sources of

Question 19

In an Internet start-up,advertising costs will be extensive to create awareness of the website.

Accepted Answer

A) True 
 B)False

Question 20

Assets represent the net worth of the firm.

Accepted Answer

A) True 
 B)False

Which of the following would be considered a variable expense?

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

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

Which of the following would not be a current asset?

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

In projecting the operating expenses for the second and third year,it is helpful to first look at those expenses that will likely change over time.

Many profitable firms fail because of lack of cash.

Any amount due within a year is considered a current liability.

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

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

Cash flow:

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.

Fixed assets are those that:

The _____ budget is used to project cash flows for the cost of goods produced.

Define capital budgeting.

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

The pro forma cash flow,like the _________,is based on best estimates.

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

In an Internet start-up,advertising costs will be extensive to create awareness of the website.

Assets represent the net worth of the firm.

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

Which of the following would be considered a variable expense?

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

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

Which of the following would not be a current asset?

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

In projecting the operating expenses for the second and third year,it is helpful to first look at those expenses that will likely change over time.

Many profitable firms fail because of lack of cash.

Any amount due within a year is considered a current liability.

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

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

Cash flow:

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.

Fixed assets are those that:

The _____ budget is used to project cash flows for the cost of goods produced.

Define capital budgeting.

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

The pro forma cash flow,like the _________,is based on best estimates.

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

In an Internet start-up,advertising costs will be extensive to create awareness of the website.

Assets represent the net worth of the firm.

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

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