Exam 11: Forecasting Financial Requirements

The cash budget is concerned specifically with dollars both received and paid out.

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

Match the term with its definition. -A method of forecasting asset requirements using a ratio of assets to sales

Which of the following sources of information would be the most inclusive for an entrepreneur engaging in financial forecasting?

Which of the following is the best source of information when forecasting?

Match the term with its definition. -Statements that project a firm's financial performance and condition, including a firm's projected profits, assets and financing requirements, and cash flows

Zeno had a great idea but no cash so he asked the bank for a loan to finance the entire operation. It seems he forgot that a bank would never provide _____ percent of the firm's financing.

The projections of a venture's profits, asset and financing requirements, and cash flows are essential in determining whether a venture is economically viable.