Question 1

Expenses or costs that vary directly with revenues are said to be:

Accepted Answer

A) fixed expenses 
B) semi-fixed expenses 
C) semi-variable expenses 
D) variable expenses 
A) fixed expenses 
B) semi-fixed expenses 
C) semi-variable expenses 
D) variable expenses

Question 2

The balance sheet equation states that total assets =

Accepted Answer

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

Question 3

Which of the following is not a characteristic of marketable securities?

Accepted Answer

A) short-term 
B) illiquid 
C) high-quality 
D) interest-bearing 
A) short-term 
B) illiquid 
C) high-quality 
D) interest-bearing

Question 4

Net cash build occurs when the sum of cash flows from operations and investing is negative.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a category on the statement of cash flows?

Accepted Answer

A) cash flow from operating activities 
B) cash flow from equity activities 
C) cash flow from investing activities 
D) cash flow from financing activities 
A) cash flow from operating activities 
B) cash flow from equity activities 
C) cash flow from investing activities 
D) cash flow from financing activities

Question 6

Determine the total operating fixed costs (TOFC)based on the following: Administrative expenses = $200,000; Marketing expenses = $180,000; Depreciation expenses = $100,000; and Interest expenses = $20,000.

Accepted Answer

A) $200,000 
B) $380,000 
C) $400,000 
D) $480,000 
E) $500,000 
A) $200,000 
B) $380,000 
C) $400,000 
D) $480,000 
E) $500,000

Question 7

Financial statement that shows how cash,as reflected in accrual accounting,flows into and out of a company during a specific period of operation 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

Question 8

During the startup stage in a new venture's life cycle,the income statement typically shows no sales but expenses including the production and market of products or services.

Accepted Answer

A) True 
 B)False

Question 9

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 10

On the balance sheet,Total Liabilities = Total Assets - Owners Equity.

Accepted Answer

A) True 
 B)False

Question 11

Which one of the following is not considered to be an internal operating schedule?

Accepted Answer

A) income statement 
B) cost of production schedule 
C) cost of goods sold schedule 
D) inventories schedule 
A) income statement 
B) cost of production schedule 
C) cost of goods sold schedule 
D) inventories schedule

Question 12

A firm with constant variable costs has a survival revenue breakeven of $375,000.This year it had $250,000 in sales,$100,000 of which was a fixed cost.What are the firm's cash fixed costs?

Accepted Answer

A) $150,000 
B) $225,000 
C) $625,000 
D) $937,500 
A) $150,000 
B) $225,000 
C) $625,000 
D) $937,500

Question 13

Accrual accounting is the practice of recording economic activity when recognized rather than waiting until realized.

Accepted Answer

A) True 
 B)False

Question 14

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 operating income?

Accepted Answer

A) $4,000 
B) $2,000 
C) $9,500 
D) $6,000 
E) $1,320 
A) $4,000 
B) $2,000 
C) $9,500 
D) $6,000 
E) $1,320

Question 15

Which of the following is not depreciated?

Accepted Answer

A) inventory 
B) machinery 
C) land 
D) both a and b 
E) both a and c 
A) inventory 
B) machinery 
C) land 
D) both a and b 
E) both a and c

Question 16

In breakeven analysis,solving for when EBITDA is equal to zero gives breakeven in terms of:

Accepted Answer

A) economic revenues 
B) variable costs 
C) survival revenues 
D) fixed costs 
A) economic revenues 
B) variable costs 
C) survival revenues 
D) fixed costs

Question 17

Long-term,non-cancelable leases whereby the owner receives payments that cover the cost of the equipment plus a return on investment in the equipment is known as a capital lease.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

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

Question 19

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% 
E) 100% 
A) 70% 
B) 60% 
C) 30% 
D) 40% 
E) 100%

Question 20

Financial statement that provides a snapshot of a business' financial position as of a specific date 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

Expenses or costs that vary directly with revenues are said to be:

The balance sheet equation states that total assets =

Which of the following is not a characteristic of marketable securities?

Net cash build occurs when the sum of cash flows from operations and investing is negative.

Which of the following is not a category on the statement of cash flows?

Determine the total operating fixed costs (TOFC)based on the following: Administrative expenses = $200,000; Marketing expenses = $180,000; Depreciation expenses = $100,000; and Interest expenses = $20,000.

Financial statement that shows how cash,as reflected in accrual accounting,flows into and out of a company during a specific period of operation is called the:

During the startup stage in a new venture's life cycle,the income statement typically shows no sales but expenses including the production and market of products or services.

Cash includes all of the following except:

On the balance sheet,Total Liabilities = Total Assets - Owners Equity.

Which one of the following is not considered to be an internal operating schedule?

A firm with constant variable costs has a survival revenue breakeven of $375,000.This year it had $250,000 in sales,$100,000 of which was a fixed cost.What are the firm's cash fixed costs?

Accrual accounting is the practice of recording economic activity when recognized rather than waiting until realized.

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 operating income?

Which of the following is not depreciated?

In breakeven analysis,solving for when EBITDA is equal to zero gives breakeven in terms of:

Long-term,non-cancelable leases whereby the owner receives payments that cover the cost of the equipment plus a return on investment in the equipment is known as a capital lease.

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

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

Financial statement that provides a snapshot of a business' financial position as of a specific date is called the:

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

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Exam 4: Preparing and Using Financial Statements

Expenses or costs that vary directly with revenues are said to be:

The balance sheet equation states that total assets =

Which of the following is not a characteristic of marketable securities?

Net cash build occurs when the sum of cash flows from operations and investing is negative.

Which of the following is not a category on the statement of cash flows?

Determine the total operating fixed costs (TOFC)based on the following: Administrative expenses = $200,000; Marketing expenses = $180,000; Depreciation expenses = $100,000; and Interest expenses = $20,000.

Financial statement that shows how cash,as reflected in accrual accounting,flows into and out of a company during a specific period of operation is called the:

During the startup stage in a new venture's life cycle,the income statement typically shows no sales but expenses including the production and market of products or services.

Cash includes all of the following except:

On the balance sheet,Total Liabilities = Total Assets - Owners Equity.

Which one of the following is not considered to be an internal operating schedule?

A firm with constant variable costs has a survival revenue breakeven of $375,000.This year it had $250,000 in sales,$100,000 of which was a fixed cost.What are the firm's cash fixed costs?

Accrual accounting is the practice of recording economic activity when recognized rather than waiting until realized.

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 operating income?

Which of the following is not depreciated?

In breakeven analysis,solving for when EBITDA is equal to zero gives breakeven in terms of:

Long-term,non-cancelable leases whereby the owner receives payments that cover the cost of the equipment plus a return on investment in the equipment is known as a capital lease.

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

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

Financial statement that provides a snapshot of a business' financial position as of a specific date is called the:

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