Entrepreneurship Theory Process Practice

Business

Quiz 11 :

Financial Preparation for Entrepreneurial Ventures

Quiz 11 :

Financial Preparation for Entrepreneurial Ventures

Question Type
search
arrow
The pro forma income statement is prepared before the pro forma balance sheet.
Free
True False
Answer:

Answer:

True

Tags
Choose question tag
close menu
arrow
When using regression analysis, the entrepreneur may draw conclusions about the relationship between product sales and advertising expenditures.
Free
True False
Answer:

Answer:

True

Tags
Choose question tag
close menu
arrow
Break-even analysis is used to tell how many units must be sold in order to break even at a particular selling price.
Free
True False
Answer:

Answer:

True

Tags
Choose question tag
close menu
arrow
Accounts receivable turnover measures the rate at which accounts receivable are being collected on a monthly basis.
True False
Answer:
Tags
Choose question tag
close menu
arrow
Financial information pulls together all the information presented in the other segments of the business.
True False
Answer:
Tags
Choose question tag
close menu
arrow
The first type of expense to be estimated when preparing an operating budget is cost of goods sold.
True False
Answer:
Tags
Choose question tag
close menu
arrow
An entrepreneur must graph at least two numbers-total sales and total expenses-when using the graphic approach for break-even analysis.
True False
Answer:
Tags
Choose question tag
close menu
arrow
Horizontal analysis looks at financial statements and ratios over time.
True False
Answer:
Tags
Choose question tag
close menu
arrow
The cash-flow budget provides an overview of cash inflows and outflows for the budget period.
True False
Answer:
Tags
Choose question tag
close menu
arrow
After the operating budget has been prepared, an entrepreneur can proceed to the next phase of the budget process, which is the cash-flow budget.
True False
Answer:
Tags
Choose question tag
close menu
arrow
Capital investments or capital expenditures are expected to last beyond one year.
True False
Answer:
Tags
Choose question tag
close menu
arrow
The traditional accounting equation is: Assets + Liabilities = Owners' Equity.
True False
Answer:
Tags
Choose question tag
close menu
arrow
Contribution margin is the difference between the selling price and the fixed cost per unit.
True False
Answer:
Tags
Choose question tag
close menu
arrow
A budget is one of the most powerful tools that an entrepreneur can use in planning business operations.
True False
Answer:
Tags
Choose question tag
close menu
arrow
The first step in the preparation of the cash-flow budget is the identification and timing of cash outflows.
True False
Answer:
Tags
Choose question tag
close menu
arrow
The principal objective of capital budgeting is to maximize the value of the firm.
True False
Answer:
Tags
Choose question tag
close menu
arrow
The typical business will have cash inflows from three sources: cash sales, cash payments received on account, and loan proceeds.
True False
Answer:
Tags
Choose question tag
close menu
arrow
It is typical for a firm to prepare an operating budget but not a cash-flow budget.
True False
Answer:
Tags
Choose question tag
close menu
arrow
The handling questionable costs approach of break-even analysis was specifically designed for firms that have expenses that are difficult to assign.
True False
Answer:
Tags
Choose question tag
close menu
arrow
Pro forma statements show the firm's present financial position.
True False
Answer:
Tags
Choose question tag
close menu
Showing 1 - 20 of 78