Exam 4: Cost and Profitability Assessment

All of the following are examples of variable operating expenses, except:

A feasibility study will help you determine:

If your feasibility study suggests to you that your new business venture is not viable, the next step is to:

Distinguish between current assets and fixed assets.

What is the formula used to determine cash flow from operating activities?

Debts you expect to incur that will fall due in less than 12 months are considered:

Distinguish between current liabilities and long-term liabilities.

Which category of financial ratios measure the level of debt the business has incurred?

What are the three sections in a typical cash flow statement?

Non-cash accounting entries that may show up on an income statement such as depreciation, amortization, and asset transfers are ignored in forecasting the cash flow statement.

A(n) _______ measures the company's sales and expenses during a specified period of time.

Which of the following financial statements provides a "snapshot" of your business's health at one point in time?

The debt-to-equity ratio is an example of a(n):

All of the following are examples of fixed expenses, except:

In very simple terms, a cash flow forecast:

Compare and contrast liquidity ratios with profitability ratios.

Briefly outline the key information that must be available to construct a pro forma income statement.

All of the following are current assets, except:

The cost of goods sold:

What is the basic algebraic formula used to determine the break-even point?