Ready to test your Knowledge?
Try out our new practice tests completely free!
exam preparation banner icon

The Art Science

Business

Quiz 6 :

Analyzing Cash Flow and Other Financial Information

Quiz 6 :

Analyzing Cash Flow and Other Financial Information

search
arrow
It is possible to sell products and have no cash coming into a company.
Free
True False
Answer:

Answer:

True

arrow
When there is a doubling in orders for a new business's products or services in a single month, it leads to an immediate increase in the cash flowing into the business.
Free
True False
Answer:

Answer:

False

arrow
A cash flow statement is the same as a budget.
Free
True False
Answer:

Answer:

False

arrow
A general rule of thumb when examining the initial equity needs of a new venture is to base it on equity investments competitors have made into their businesses.
True False
Answer:
arrow
A firm obtains profits when its sales revenue is higher than its expenses.
True False
Answer:
arrow
In a small business, profits will demonstrate to the owner if the business is viable over the long term.
True False
Answer:
arrow
If a small firm is making a profit, then the firm must have a positive cash flow.
True False
Answer:
arrow
Everything in cash flow in a small business is related to one activity: operations.
True False
Answer:
arrow
A budget details all the expenses incurred by a company within a specified period.
True False
Answer:
arrow
A budget does the exact opposite of a cash flow statement.
True False
Answer:
arrow
In a business, the actual cash that flows into the firm minus the cash that goes out of it is known as cash flow.
True False
Answer:
arrow
A new small business must pay its vendors by using purchase orders.
True False
Answer:
arrow
To prevent a cash crunch, a company must accurately forecast its actual cash flow.
True False
Answer:
arrow
Float is the difference between the money going out and the money coming in.
True False
Answer:
arrow
One of the fundamental realities of starting a new business is that it takes a period of time for the new venture to ramp up sales and then to obtain cash from those sales.
True False
Answer:
arrow
Cash flow in a business is the same as profit.
True False
Answer:
arrow
A deviation analysis is a review of the differences between the predicted and the actual performance of cash flows.
True False
Answer:
arrow
For a proposed new business, a financial analysis focuses exclusively on its ability to generate positive cash flow in the shortest time possible.
True False
Answer:
arrow
In a large firm, when there is a separation between managers and ownership, profits are a useful measure to evaluate a manager's performance.
True False
Answer:
arrow
In order to determine a firm's cash flow, the firm's owner must calculate the entire cash flow projection and multiply that by 150 percent to determine if the firm can meet its financial obligations.
True False
Answer:
Showing 1 - 20 of 93