Question 1

A financial statement that reports the revenues generated and expenses incurred over an accounting period is called the:

Accepted Answer

A) income statement 
B) balance sheet 
C) statement of retained earnings 
D) statement of cash flows 
A) income statement 
B) balance sheet 
C) statement of retained earnings 
D) statement of cash flows A

Question 2

A lease that provides maintenance in addition to financing and is also usually cancelable is called a(n):

Accepted Answer

A) capital lease 
B) operating lease 
C) asset lease 
D) equity lease 
A) capital lease 
B) operating lease 
C) asset lease 
D) equity lease B

Question 3

Internal operating schedules include all of the following except:

Accepted Answer

A) cost of production schedules 
B) inventories schedules 
C) balance sheets 
D) cost of goods sold schedules 
A) cost of production schedules 
B) inventories schedules 
C) balance sheets 
D) cost of goods sold schedules C

Question 4

Net cash burn occurs when the sum of which of the following items is negative?

Accepted Answer

A) cash flows from operations and financing 
B) cash flows from investing and financing 
C) cash flows from operations and investing 
D) cash flows from net income and depreciation 
A) cash flows from operations and financing 
B) cash flows from investing and financing 
C) cash flows from operations and investing 
D) cash flows from net income and depreciation

Question 5

Acme Pest Control has sales of $13,500, cost of goods sold of $4,000, selling expenses of $3,500, depreciation of $2,000, interest expense of $2,000, and a tax rate of 34%. What is Acme's net income?

Accepted Answer

A) $2,920 
B) $680 
C) $2,000 
D) $1,320 
A) $2,920 
B) $680 
C) $2,000 
D) $1,320

Question 6

Which of the following is not a characteristic of inventories?

Accepted Answer

A) raw materials 
B) finished products 
C) goods sold but not yet shipped 
D) work-in-process 
A) raw materials 
B) finished products 
C) goods sold but not yet shipped 
D) work-in-process

Question 7

The balance sheet equation states that total assets equals:

Accepted Answer

A) total liabilities plus depreciation 
B) total liabilities plus owners' equity 
C) owners' equity plus net income 
D) owners' equity plus current liabilities 
A) total liabilities plus depreciation 
B) total liabilities plus owners' equity 
C) owners' equity plus net income 
D) owners' equity plus current liabilities

Question 8

The production and inventories schedules are two internal operating schedules needed to prepare a venture's financial statements.

Accepted Answer

A) True 
 B)False

Question 9

On the balance sheet, total liabilities equals total assets minus owners' equity.

Accepted Answer

A) True 
 B)False

Question 10

Acme Pest Control has sales of $13,500, cost of goods sold of $4,000, selling expenses of $3,500, depreciation of $2,000, interest expense of $2,000, and a tax rate of 34%. What is Acme's taxable income and tax expense?

Accepted Answer

A) $6,000; $2,040 
B) $2,000; $1,320 
C) $4,000; $1,360 
D) $2,000; $680 
A) $6,000; $2,040 
B) $2,000; $1,320 
C) $4,000; $1,360 
D) $2,000; $680

Question 11

Economic value added (EVA) measures a firm's market value added over a specified time period.

Accepted Answer

A) True 
 B)False

Question 12

What is the survival revenues breakeven based on the following information: administrative expenses = $200,000; marketing expenses = $180,000; depreciation expenses = $100,000; interest expenses = $20,000; and a variable cost revenue ratio = 0.50?

Accepted Answer

A) $600,000 
B) $800,000 
C) $1,000,000 
D) $1,200,000 
A) $600,000 
B) $800,000 
C) $1,000,000 
D) $1,200,000

Question 13

Cost of goods sold is the cost of materials, labor, and advertising incurred to produce the products that were sold.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following shows the calculation for economic value added (EVA)?]

Accepted Answer

A) EVA = NOPAT + After-Tax Dollar Cost of Financial Capital Used 
B) EVA = ROE - Percentage Cost of Financial Capital 
C) EVA = NOPAT - After-Tax Dollar Cost of Financial Capital Used 
D) EVA = ROE + Percentage Cost of Financial Capital 
A) EVA = NOPAT + After-Tax Dollar Cost of Financial Capital Used 
B) EVA = ROE - Percentage Cost of Financial Capital 
C) EVA = NOPAT - After-Tax Dollar Cost of Financial Capital Used 
D) EVA = ROE + Percentage Cost of Financial Capital

Question 15

The income statement is a financial statement that reports the revenues generated and expenses incurred over an accounting period.

Accepted Answer

A) True 
 B)False

Question 16

Cash includes all of the following except :

Accepted Answer

A) coins 
B) currency 
C) checking accounts 
D) certificates of deposit 
A) coins 
B) currency 
C) checking accounts 
D) certificates of deposit

Question 17

Find the contribution profit margin based on the following information: cash fixed costs = $60,000; variable costs = $70,000; and sales = $100,000.

Accepted Answer

A) 70% 
B) 60% 
C) 30% 
D) 40% 
A) 70% 
B) 60% 
C) 30% 
D) 40%

Question 18

Seed financing (e.g., financing from the entrepreneur's assets, family, and friends)usually occurs during the development stage in a new venture's life cycle.

Accepted Answer

A) True 
 B)False

Question 19

The practice of recording economic activity when it is recognized rather than waiting until it is realized is called:

Accepted Answer

A) GAAP accounting 
B) accrual accounting 
C) forward-looking accounting 
D) management accounting 
A) GAAP accounting 
B) accrual accounting 
C) forward-looking accounting 
D) management accounting

Question 20

Use the following information to determine the cash fixed costs: administrative expenses = $200,000; marketing expenses = $180,000; depreciation expenses = $100,000; and interest expenses = $20,000.

Accepted Answer

A) $380,000 
B) $400,000 
C) $480,000 
D) $500,000 
A) $380,000 
B) $400,000 
C) $480,000 
D) $500,000

A financial statement that reports the revenues generated and expenses incurred over an accounting period is called the:

A lease that provides maintenance in addition to financing and is also usually cancelable is called a(n):

Internal operating schedules include all of the following except:

Net cash burn occurs when the sum of which of the following items is negative?

Acme Pest Control has sales of $13,500, cost of goods sold of $4,000, selling expenses of $3,500, depreciation of $2,000, interest expense of $2,000, and a tax rate of 34%. What is Acme's net income?

Which of the following is not a characteristic of inventories?

The balance sheet equation states that total assets equals:

The production and inventories schedules are two internal operating schedules needed to prepare a venture's financial statements.

On the balance sheet, total liabilities equals total assets minus owners' equity.

Acme Pest Control has sales of $13,500, cost of goods sold of $4,000, selling expenses of $3,500, depreciation of $2,000, interest expense of $2,000, and a tax rate of 34%. What is Acme's taxable income and tax expense?

Economic value added (EVA) measures a firm's market value added over a specified time period.

What is the survival revenues breakeven based on the following information: administrative expenses = $200,000; marketing expenses = $180,000; depreciation expenses = $100,000; interest expenses = $20,000; and a variable cost revenue ratio = 0.50?

Cost of goods sold is the cost of materials, labor, and advertising incurred to produce the products that were sold.

Which of the following shows the calculation for economic value added (EVA)?]

The income statement is a financial statement that reports the revenues generated and expenses incurred over an accounting period.

Cash includes all of the following except :

Find the contribution profit margin based on the following information: cash fixed costs = $60,000; variable costs = $70,000; and sales = $100,000.

Seed financing (e.g., financing from the entrepreneur's assets, family, and friends)usually occurs during the development stage in a new venture's life cycle.

The practice of recording economic activity when it is recognized rather than waiting until it is realized is called:

Use the following information to determine the cash fixed costs: administrative expenses = $200,000; marketing expenses = $180,000; depreciation expenses = $100,000; and interest expenses = $20,000.

Introduction to Finance for Entrepreneurs

Developing the Business Idea

Organizing and Financing a New Venture

Evaluating Operating and Financial Performance

Managing Cash Flow

Types and Costs of Financial Capital

Securities Law Considerations When Obtaining Venture Financing

Projecting Financial Statements

Valuing Early Stage Ventures

Venture Capital Valuation Methods

Professional Venture Capital

Other Financing Alternatives

Security Structures and Determining Enterprise Values

Harvesting the Business Venture Investment

Financially Troubled Ventures Turnaround Opportunities

Filters

Exam 4: Preparing and Using Financial Statements

A financial statement that reports the revenues generated and expenses incurred over an accounting period is called the:

A lease that provides maintenance in addition to financing and is also usually cancelable is called a(n):

Internal operating schedules include all of the following except:

Net cash burn occurs when the sum of which of the following items is negative?

Acme Pest Control has sales of $13,500, cost of goods sold of $4,000, selling expenses of $3,500, depreciation of $2,000, interest expense of $2,000, and a tax rate of 34%. What is Acme's net income?

Which of the following is not a characteristic of inventories?

The balance sheet equation states that total assets equals:

The production and inventories schedules are two internal operating schedules needed to prepare a venture's financial statements.

On the balance sheet, total liabilities equals total assets minus owners' equity.

Acme Pest Control has sales of $13,500, cost of goods sold of $4,000, selling expenses of $3,500, depreciation of $2,000, interest expense of $2,000, and a tax rate of 34%. What is Acme's taxable income and tax expense?

Economic value added (EVA) measures a firm's market value added over a specified time period.

What is the survival revenues breakeven based on the following information: administrative expenses = $200,000; marketing expenses = $180,000; depreciation expenses = $100,000; interest expenses = $20,000; and a variable cost revenue ratio = 0.50?

Cost of goods sold is the cost of materials, labor, and advertising incurred to produce the products that were sold.

Which of the following shows the calculation for economic value added (EVA)?]

The income statement is a financial statement that reports the revenues generated and expenses incurred over an accounting period.

Cash includes all of the following except :

Find the contribution profit margin based on the following information: cash fixed costs = $60,000; variable costs = $70,000; and sales = $100,000.

Seed financing (e.g., financing from the entrepreneur's assets, family, and friends)usually occurs during the development stage in a new venture's life cycle.

The practice of recording economic activity when it is recognized rather than waiting until it is realized is called:

Use the following information to determine the cash fixed costs: administrative expenses = $200,000; marketing expenses = $180,000; depreciation expenses = $100,000; and interest expenses = $20,000.

Introduction to Finance for Entrepreneurs

Developing the Business Idea

Organizing and Financing a New Venture

Evaluating Operating and Financial Performance

Managing Cash Flow

Types and Costs of Financial Capital

Securities Law Considerations When Obtaining Venture Financing

Projecting Financial Statements

Valuing Early Stage Ventures

Venture Capital Valuation Methods

Professional Venture Capital

Other Financing Alternatives

Security Structures and Determining Enterprise Values

Harvesting the Business Venture Investment

Financially Troubled Ventures Turnaround Opportunities

Filters