Question 1

Brynlee paid $500,000 for a company,$100,000 in excess of the book value.Brynlee has ______.

Accepted Answer

A)  $100,000 of expenses
B)  $100,000 of intangible assets
C)  goodwill of $100,000
D)  debt of $100,000 C

Question 2

Shari is working on a report and describes it to you as reporting what the company owes,what it owns,and her shareholder stake at the last day of the prior month.She's working on an income statement.

Accepted Answer

A) True 
 B)False  False

Question 3

Describe DOI.

Accepted Answer

DOI is a measure of the average number of days it takes to sell the entire inventory of a company.DOI is calculated using the following equation: DOI = (Average Inventory)/COGS per day Average Inventory = (Beginning Inventory + Ending Inventory)/2 COGS per day = COGS/356

Question 4

Ana is interested in developing her credit policy.She wants to make a policy for which of the following?

Accepted Answer

A)  the price and timing of raw materials,and other goods and services necessary to build,sell,and support products
B)  how pricing will be determined for her products and services
C)  the level of compensation and benefits for each type of position in the business
D)  the process and timing in which obligations to pay for products and services sold will be billed and collected

Question 5

Norah is interested in developing her purchasing policy.She wants to make a policy for which of the following?

Accepted Answer

A)  the price and timing of raw materials,and other goods and services necessary to build,sell,and support products
B)  how pricing will be determined for her products and services
C)  the level of compensation and benefits for each type of position in the business
D)  the process and timing in which obligations to pay for products and services sold will be billed and collected

Question 6

Describe how to calculate CCC (cash conversion cycle).

Accepted Answer

The answer of Describe how to calculate CCC (cash conversion...

Question 7

Which of the following is a cash inflow?

Accepted Answer

A)  wages
B)  shares
C)  payment to suppliers
D)  dividends to shareholders

Question 8

Kurt has a 5-year bank loan with his business.The principal that is scheduled to be paid in the first 12 months is considered ______.

Accepted Answer

A)  a loss
B)  a long-term liability
C)  a short-term portion of long-term debt
D)  operational cash flows

Question 9

The pro forma financial statement should include at least three scenarios of your financial forecast,each containing an income statement,balance sheet,and ______.

Accepted Answer

A)  sales statement
B)  capitol stock
C)  cash flow statement
D)  accrued expenses

Question 10

Shareholder equity includes what two main components?

Accepted Answer

A)  retained earnings and capital stock
B)  long-term investments and retained earnings
C)  intangible assets and capital stock
D)  retained earnings and fixed assets

Question 11

Describe DSO.

Accepted Answer

The answer of Describe DSO....

Question 12

______ is the amount that customers owe to a company after receipt of items or services purchased.

Accepted Answer

A)  Accounts payable
B)  Accounts receivable
C)  Accounts deferred
D)  Accounts accrued

Question 13

What is the backlog?

Accepted Answer

A)  the amount of money that the company owes vendors
B)  the amount of money due to a company from its customers
C)  orders that have been received but not delivered to the customer
D)  orders that have been delivered to the customer but not yet paid for

Question 14

Katie is interested in developing her compensation policy.She wants to make a policy for which of the following?

Accepted Answer

A)  the price and timing of raw materials,and other goods and services necessary to build,sell,and support products
B)  how pricing will be determined for her products and services
C)  the level of compensation and benefits for each type of position in the business
D)  the process and timing in which obligations to pay for products and services sold will be billed and collected

Question 15

Bill's business has sales of $100,000,inventory of $20,000,cost of goods sold of $31,000,and general and administrative expenses of $45,000.Bill's gross profit is $69,000.

Accepted Answer

A) True 
 B)False

Question 16

Sally is worried about her backlog report.This is a report on orders that have been delivered but not yet paid by the customers.

Accepted Answer

A) True 
 B)False

Question 17

Bill's business has sales of $100,000,inventory of $20,000,cost of goods sold of $31,000,and general and administrative expenses of $45,000.Bill's gross profit is $80,000.

Accepted Answer

A) True 
 B)False

Question 18

Jimi is very interested in managing his cash.You mentioned this course to him and told him about ______,which is the number of days a company's cash is tied up in the production and sales process.

Accepted Answer

A)  the income statement
B)  the cash convention report
C)  the cash conversion cycle
D)  adding depreciation and amortization to net income

Question 19

The balance sheet shows ______.

Accepted Answer

A)  what the business owns and what the business owes
B)  only net worth
C)  current employee salaries
D)  shareholder deferred revenue

Question 20

Naseem is interested in developing her pricing policy.She wants to make a policy for which of the following?

Accepted Answer

A)  the price and timing of raw materials,and other goods and services necessary to build,sell,and support products
B)  how pricing will be determined for her products and services
C)  the level of compensation and benefits for each type of position in the business
D)  the process and timing in which obligations to pay for products and services sold will be billed and collected

Exam 17: Financial Statements and Projections for Startups

Brynlee paid $500,000 for a company,$100,000 in excess of the book value.Brynlee has ______.

Shari is working on a report and describes it to you as reporting what the company owes,what it owns,and her shareholder stake at the last day of the prior month.She's working on an income statement.

Describe DOI.

Ana is interested in developing her credit policy.She wants to make a policy for which of the following?

Norah is interested in developing her purchasing policy.She wants to make a policy for which of the following?

Describe how to calculate CCC (cash conversion cycle).

Which of the following is a cash inflow?

Kurt has a 5-year bank loan with his business.The principal that is scheduled to be paid in the first 12 months is considered ______.

The pro forma financial statement should include at least three scenarios of your financial forecast,each containing an income statement,balance sheet,and ______.

Shareholder equity includes what two main components?

Describe DSO.

______ is the amount that customers owe to a company after receipt of items or services purchased.

What is the backlog?

Katie is interested in developing her compensation policy.She wants to make a policy for which of the following?

Bill's business has sales of $100,000,inventory of $20,000,cost of goods sold of $31,000,and general and administrative expenses of $45,000.Bill's gross profit is $69,000.

Sally is worried about her backlog report.This is a report on orders that have been delivered but not yet paid by the customers.

Bill's business has sales of $100,000,inventory of $20,000,cost of goods sold of $31,000,and general and administrative expenses of $45,000.Bill's gross profit is $80,000.

Jimi is very interested in managing his cash.You mentioned this course to him and told him about ______,which is the number of days a company's cash is tied up in the production and sales process.

The balance sheet shows ______.

Naseem is interested in developing her pricing policy.She wants to make a policy for which of the following?