Question 1

The practice of recording economic activity when realized is known as accrual accounting.

Accepted Answer

A) True 
 B)False

Question 2

EBDAT is equal to:

Accepted Answer

A) revenues - variable costs - cash fixed costs 
B) revenues + variable costs + cash fixed costs 
C) revenues - variables costs - total fixed costs 
D) revenues + variable costs - cash fixed costs 
A) revenues - variable costs - cash fixed costs 
B) revenues + variable costs + cash fixed costs 
C) revenues - variables costs - total fixed costs 
D) revenues + variable costs - cash fixed costs

Question 3

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 
E) $9,500;$3,230 
A) $6,000;$2,040 
B) $2,000;$1,320 
C) $4,000;$1,360 
D) $2,000;$680 
E) $9,500;$3,230

Question 4

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) $2,720 
B) $897.60 
C) $6,460 
D) $2,040 
E) $1,320 
A) $2,720 
B) $897.60 
C) $6,460 
D) $2,040 
E) $1,320

Question 5

"Gross earnings" is equal to:

Accepted Answer

A) Revenue - After-Tax cost of financial capital used 
B) net income ÷ sales 
C) (net sales - the cost of production)× tax rate 
D) net sales - the cost of production 
A) Revenue - After-Tax cost of financial capital used 
B) net income ÷ sales 
C) (net sales - the cost of production)× tax rate 
D) net sales - the cost of production

Question 6

What is the survival revenues breakeven based on: cash fixed costs = $400,000 and a variable cost revenue ratio = .65?

Accepted Answer

A) $460,500 
B) $615,385 
C) $1,142,857 
D) $2,000,334 
E) $4,000,667 
A) $460,500 
B) $615,385 
C) $1,142,857 
D) $2,000,334 
E) $4,000,667

Question 7

Which of the following is a source of cash?

Accepted Answer

A) an increase in accounts receivable 
B) a decrease in wages payable 
C) the acquisition of land 
D) an increasein the amount owed on a note payable 
E) the repurchase of outstanding shares of stock 
A) an increase in accounts receivable 
B) a decrease in wages payable 
C) the acquisition of land 
D) an increasein the amount owed on a note payable 
E) the repurchase of outstanding shares of stock

Question 8

Which of the following is a use of cash?

Accepted Answer

A) a decrease in inventory 
B) an increase in accrued liabilities 
C) the sale of an asset for a gain 
D) a drop in the amount owed on a bond 
E) an increase in stock issued 
A) a decrease in inventory 
B) an increase in accrued liabilities 
C) the sale of an asset for a gain 
D) a drop in the amount owed on a bond 
E) an increase in stock issued

The practice of recording economic activity when realized is known as accrual accounting.

EBDAT is equal to:

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?

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?

"Gross earnings" is equal to:

What is the survival revenues breakeven based on: cash fixed costs = $400,000 and a variable cost revenue ratio = .65?

Which of the following is a source of cash?

Which of the following is a use of cash?

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

The practice of recording economic activity when realized is known as accrual accounting.

EBDAT is equal to:

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?

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?

"Gross earnings" is equal to:

What is the survival revenues breakeven based on: cash fixed costs = $400,000 and a variable cost revenue ratio = .65?

Which of the following is a source of cash?

Which of the following is a use of cash?

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