Question 1

Projecting financials may present a challenge because in a start-up business:

Accepted Answer

A) things seldom go as planned. 
B) things always go as planned. 
C) expenses are too complex. 
D) expenses are simple. 
A) things seldom go as planned. 
B) things always go as planned. 
C) expenses are too complex. 
D) expenses are simple.

Question 2

Jill's business has current assets of R50 000 and current liabilities of R25 000.Which statement is true about the company's current ratio?

Accepted Answer

A) The ratio is 50% and is acceptable for most industries. 
B) The ratio is 2 and is acceptable for most industries. 
C) The ratio is R25 000 and is not acceptable for most industries. 
D) Current ratio cannot be determined from the information given. 
A) The ratio is 50% and is acceptable for most industries. 
B) The ratio is 2 and is acceptable for most industries. 
C) The ratio is R25 000 and is not acceptable for most industries. 
D) Current ratio cannot be determined from the information given.

Question 3

Liquid assets include:

Accepted Answer

A) trade payables. 
B) equipment. 
C) working capital. 
D) office supplies. 
A) trade payables. 
B) equipment. 
C) working capital. 
D) office supplies.

Question 4

Maria is projecting sales for her company for the upcoming new year.To be financially effective, she:

Accepted Answer

A) can over-project for sales if she has done research. 
B) should develop realistic sales projections. 
C) would be better served by under-projecting sales so she won't be disappointed. 
D) should ignore projections until after one year of operations when she can realistically project. 
A) can over-project for sales if she has done research. 
B) should develop realistic sales projections. 
C) would be better served by under-projecting sales so she won't be disappointed. 
D) should ignore projections until after one year of operations when she can realistically project.

Question 5

The cost of goods sold is always fixed.

Accepted Answer

A) True 
 B)False

Question 6

A golf club should break down its annual cash budget into shorter time units because:

Accepted Answer

A) of the seasonality of its sales. 
B) one year is too far into the future to predict. 
C) the marketing plans may change during the year. 
D) production breakdowns may alter the company's situation. 
A) of the seasonality of its sales. 
B) one year is too far into the future to predict. 
C) the marketing plans may change during the year. 
D) production breakdowns may alter the company's situation.

Question 7

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.

Question 8

Which source of information would be the most inclusive for an entrepreneur determining information to complete the financial statements?

Accepted Answer

A) Attend trade shows. 
B) Contact the industry association. 
C) Examine industry averages. 
D) Talk to others in the industry. 
A) Attend trade shows. 
B) Contact the industry association. 
C) Examine industry averages. 
D) Talk to others in the industry.

Question 9

Jake has prepared pro forma financial statements for his landscaping business.At the minimum, how often should he check results and make modifications as needed?

Accepted Answer

A) Annually 
B) Quarterly 
C) Monthly 
D) Weekly 
A) Annually 
B) Quarterly 
C) Monthly 
D) Weekly

Question 10

Cash flow can be projected in two ways: using the statement of profit and loss to project cash flows or preparing a cash budget.

Accepted Answer

A) True 
 B)False

Question 11

The cash budget is concerned only with rand received and rand paid out.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) statement of profit and loss. 
B) cash budget. 
C) pro forma statement of financial position. 
D) net equity computation. 
A) statement of profit and loss. 
B) cash budget. 
C) pro forma statement of financial position. 
D) net equity computation.

Projecting financials may present a challenge because in a start-up business:

Jill's business has current assets of R50 000 and current liabilities of R25 000.Which statement is true about the company's current ratio?

Liquid assets include:

Maria is projecting sales for her company for the upcoming new year.To be financially effective, she:

The cost of goods sold is always fixed.

A golf club should break down its annual cash budget into shorter time units because:

Which action will be a concern for a prospective investor?

Which source of information would be the most inclusive for an entrepreneur determining information to complete the financial statements?

Jake has prepared pro forma financial statements for his landscaping business.At the minimum, how often should he check results and make modifications as needed?

Cash flow can be projected in two ways: using the statement of profit and loss to project cash flows or preparing a cash budget.

The cash budget is concerned only with rand received and rand paid out.

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

The Entrepreneurial Life

Integrity, Ethics And, Social Entrepreneurship

Starting a Small Business

Franchising 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 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

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Exam 11: Forecasting Financial Requirements

Projecting financials may present a challenge because in a start-up business:

Jill's business has current assets of R50 000 and current liabilities of R25 000.Which statement is true about the company's current ratio?

Liquid assets include:

Maria is projecting sales for her company for the upcoming new year.To be financially effective, she:

The cost of goods sold is always fixed.

A golf club should break down its annual cash budget into shorter time units because:

Which action will be a concern for a prospective investor?

Which source of information would be the most inclusive for an entrepreneur determining information to complete the financial statements?

Jake has prepared pro forma financial statements for his landscaping business.At the minimum, how often should he check results and make modifications as needed?

Cash flow can be projected in two ways: using the statement of profit and loss to project cash flows or preparing a cash budget.

The cash budget is concerned only with rand received and rand paid out.

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

The Entrepreneurial Life

Integrity, Ethics And, Social Entrepreneurship

Starting a Small Business

Franchising 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 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

Filters