Question 1

Depreciation is considered a source of funds because it does not represent an out-of-pocket expense.

Accepted Answer

A) True 
 B)False

Question 2

Owner equity is the excess of all assets over all liabilities.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Cash flow is the result of subtracting expenses from sales.

Accepted Answer

A) True 
 B)False

Question 5

Cash is a current asset.

Accepted Answer

A) True 
 B)False

Question 6

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.

Question 7

Rent and insurance are examples of variable costs.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Current liabilities are:

Accepted Answer

A) those liabilities due for payment within a year. 
B) everything owed to creditors. 
C) everything of value owned by the company. 
D) those liabilities that represent the excess over all assets. 
A) those liabilities due for payment within a year. 
B) everything owed to creditors. 
C) everything of value owned by the company. 
D) those liabilities that represent the excess over all assets.

Question 10

In relation to calculating a break-even point,identify two costs that are considered fixed and two costs considered variable.

Accepted Answer

Variable Fixed
Materials Depre

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

________ 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 14

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

Accepted Answer

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

Question 15

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 16

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 17

The _____ method is the most popular method used to project cash flow.

Accepted Answer

A) direct 
B) indirect 
C) depreciation-adjusted 
D) present value method 
A) direct 
B) indirect 
C) depreciation-adjusted 
D) present value method

Question 18

The marginal contribution is defined as:

Accepted Answer

A) selling price per unit minus variable cost per unit 
B) total fixed costs minus selling price per unit 
C) variable cost per unit minus the selling price per unit 
D) total fixed costs plus total variable costs 
A) selling price per unit minus variable cost per unit 
B) total fixed costs minus selling price per unit 
C) variable cost per unit minus the selling price per unit 
D) total fixed costs plus total variable costs

Question 19

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 20

______ is the volume of sales needed to cover total variable and fixed costs.

Accepted Answer

A) Cash flow 
B) Depreciation 
C) Revenue 
D) Breakeven 
A) Cash flow 
B) Depreciation 
C) Revenue 
D) Breakeven

Depreciation is considered a source of funds because it does not represent an out-of-pocket expense.

Owner equity is the excess of all assets over all liabilities.

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?

Cash flow is the result of subtracting expenses from sales.

Cash is a current asset.

Capital budgets project expenditures on:

Rent and insurance are examples of variable costs.

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

Current liabilities are:

In relation to calculating a break-even point,identify two costs that are considered fixed and two costs considered variable.

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

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

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

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

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

Which of the following would not be a current asset?

The _____ method is the most popular method used to project cash flow.

The marginal contribution is defined as:

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

______ is the volume of sales needed to cover total variable and fixed costs.

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

Depreciation is considered a source of funds because it does not represent an out-of-pocket expense.

Owner equity is the excess of all assets over all liabilities.

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?

Cash flow is the result of subtracting expenses from sales.

Cash is a current asset.

Capital budgets project expenditures on:

Rent and insurance are examples of variable costs.

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

Current liabilities are:

In relation to calculating a break-even point,identify two costs that are considered fixed and two costs considered variable.

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

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

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

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

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

Which of the following would not be a current asset?

The _____ method is the most popular method used to project cash flow.

The marginal contribution is defined as:

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

______ is the volume of sales needed to cover total variable and fixed costs.

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

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