Question 1

Roland has already projected his company's sales. The next step in forecasting his company's income is to project:

Accepted Answer

A)  operating expenses. 
B)  interest expense. 
C)  taxes. 
D)  cost of goods sold. 
A)  operating expenses. 
B)  interest expense. 
C)  taxes. 
D)  cost of goods sold.

Question 2

Willard may be able to forecast his asset needs using the ____________ technique.

Accepted Answer

A)  percentage-of-inventory 
B)  percentage-of-equity 
C)  percentage-of-debt 
D)  percentage-of-sales 
A)  percentage-of-inventory 
B)  percentage-of-equity 
C)  percentage-of-debt 
D)  percentage-of-sales

Question 3

Because Liam's new restaurant had a high volume of sales, his inventory needs increased illustrating that a firm's asset needs are the primary force driving sales.

Accepted Answer

A) True 
 B)False

Question 4

Marcia uses other people's money whenever possible to finance her business. She prefers to minimize and control rather than maximize and own. This practice is known as:

Accepted Answer

A)  high-stepping. 
B)  bootstrapping. 
C)  unethical business practice. 
D)  taking advantage of others. 
A)  high-stepping. 
B)  bootstrapping. 
C)  unethical business practice. 
D)  taking advantage of others.

Question 5

Where should Rhonda put the administrative expenses for her business when she prepares the financial forecasts?

Accepted Answer

A)  Administrative costs are subtracted from amount of sales. 
B)  In the operating expenses section 
C)  Administrative costs are included in cost of goods sold 
D)  In the interest expense section 
A)  Administrative costs are subtracted from amount of sales. 
B)  In the operating expenses section 
C)  Administrative costs are included in cost of goods sold 
D)  In the interest expense section

Question 6

A line of credit is a short-term loan used in a business to help with financing fixed assets.

Accepted Answer

A) True 
 B)False

Question 7

Pro forma financial statements are statements that have been prepared in the proper format by a CPA.

Accepted Answer

A) True 
 B)False

Question 8

Spontaneous debt financing results when accounts payable increase in proportion to a firm's profits.

Accepted Answer

A) True 
 B)False

Question 9

The greater a firm's sales, the greater need for financing because of greater _____ requirements.

Accepted Answer

A)  asset 
B)  employee 
C)  marketing 
D)  operational 
A)  asset 
B)  employee 
C)  marketing 
D)  operational

Question 10

A simple listing of expected cash inflows and outflows provides the entrepreneur with a(n)

Accepted Answer

A)  income statement. 
B)  cash budget. 
C)  pro forma balance sheet. 
D)  net equity computation. 
A)  income statement. 
B)  cash budget. 
C)  pro forma balance sheet. 
D)  net equity computation.

Question 11

Yvonne is planning a coffee shop. The cost of producing the coffee should be included in the ________ section of the pro forma financial statement.

Accepted Answer

A)  variable expense 
B)  amount of sales 
C)  cost of goods sold 
D)  operating expense 
A)  variable expense 
B)  amount of sales 
C)  cost of goods sold 
D)  operating expense

Question 12

Match the term with its definition.
-A short-term loan

Accepted Answer

A) Cash budget 
B) Current ratio 
C) Line of credit 
D) Net working capital 
E) pro forma financial statements
F)percentage-of-sales technique
G)spontaneous debt financing 
A) Cash budget 
B) Current ratio 
C) Line of credit 
D) Net working capital 
E) pro forma financial statements
F)percentage-of-sales technique
G)spontaneous debt financing

Question 13

Entrepreneurs determine financial requirements based on ________.

Accepted Answer

A)  predictions 
B)  suggestions 
C)  assumptions 
D)  projections 
A)  predictions 
B)  suggestions 
C)  assumptions 
D)  projections

Question 14

Which action will be a concern for a prospective investor?

Accepted Answer

A)  Having too much cash in a bank account 
B)  Searching for information with a trade association 
C)  Inadequate provision for personal expenses of the entrepreneur 
D)  Obtaining a line of credit before beginning operations 
A)  Having too much cash in a bank account 
B)  Searching for information with a trade association 
C)  Inadequate provision for personal expenses of the entrepreneur 
D)  Obtaining a line of credit before beginning operations

Roland has already projected his company's sales. The next step in forecasting his company's income is to project:

Willard may be able to forecast his asset needs using the ____________ technique.

Because Liam's new restaurant had a high volume of sales, his inventory needs increased illustrating that a firm's asset needs are the primary force driving sales.

Marcia uses other people's money whenever possible to finance her business. She prefers to minimize and control rather than maximize and own. This practice is known as:

Where should Rhonda put the administrative expenses for her business when she prepares the financial forecasts?

A line of credit is a short-term loan used in a business to help with financing fixed assets.

Pro forma financial statements are statements that have been prepared in the proper format by a CPA.

Spontaneous debt financing results when accounts payable increase in proportion to a firm's profits.

The greater a firm's sales, the greater need for financing because of greater _____ requirements.

A simple listing of expected cash inflows and outflows provides the entrepreneur with a(n)

Yvonne is planning a coffee shop. The cost of producing the coffee should be included in the ________ section of the pro forma financial statement.

Match the term with its definition. -A short-term loan

Entrepreneurs determine financial requirements based on ________.

Which action will be a concern for a prospective investor?

The Entrepreneurial Life

Integrity and Ethics: Foundations for Success in Small Business

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management and the Small Business

Managing Human Resources

Managing Operations

Managing the Firms Assets

Managing Risk in the Small Business

A: Managing Risk in the Small Business

Filters

Exam 11: Forecasting Financial Requirements

Roland has already projected his company's sales. The next step in forecasting his company's income is to project:

Willard may be able to forecast his asset needs using the ____________ technique.

Because Liam's new restaurant had a high volume of sales, his inventory needs increased illustrating that a firm's asset needs are the primary force driving sales.

Marcia uses other people's money whenever possible to finance her business. She prefers to minimize and control rather than maximize and own. This practice is known as:

Where should Rhonda put the administrative expenses for her business when she prepares the financial forecasts?

A line of credit is a short-term loan used in a business to help with financing fixed assets.

Pro forma financial statements are statements that have been prepared in the proper format by a CPA.

Spontaneous debt financing results when accounts payable increase in proportion to a firm's profits.

The greater a firm's sales, the greater need for financing because of greater _____ requirements.

A simple listing of expected cash inflows and outflows provides the entrepreneur with a(n)

Yvonne is planning a coffee shop. The cost of producing the coffee should be included in the ________ section of the pro forma financial statement.

Match the term with its definition. -A short-term loan

Entrepreneurs determine financial requirements based on ________.

Which action will be a concern for a prospective investor?

The Entrepreneurial Life

Integrity and Ethics: Foundations for Success in Small Business

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management and the Small Business

Managing Human Resources

Managing Operations

Managing the Firms Assets

Managing Risk in the Small Business

A: Managing Risk in the Small Business

Filters