Question 1

Shareholders equity is the same as ______.

Accepted Answer

A) owners' capital 
B) the value of stock 
C) paid in capital 
D) retained earnings

Question 2

Janis went to her accountant and learned about DSO, defined as the ______.

Accepted Answer

A) measures the number of days it takes to collect on accounts receivable 
B) measures the average number of days it takes to sell the entire inventory of a company 
C) measures the number of days it takes you to pay your bills 
D) equals DOI + DSO - DPO

Question 3

Beckett has purchased a business and now has intangible assets.He has ______.

Accepted Answer

A) assets he cannot touch 
B) to balance the books received with a plug amount and this is what it is called 
C) patents, software programs, copyrights, trademarks, and/or brand names 
D) property, plant, and equipment

Question 4

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 5

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 6

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 7

Presenting carefully thought-out financial projections to investors is an exercise in lowering perceived risk in both you as an entrepreneur and your idea.

Accepted Answer

A) True 
 B)False

Question 8

Jimi is very interested in managing his cash.You mentioned this course to him and tell him about ______.

Accepted Answer

A) the income statement 
B) Cash Convention Report 
C) cash conversion cycle 
D) adding depreciation and amortization to net income

Question 9

When a company has long-term investments, it means they ______.

Accepted Answer

A) have cash, stocks, bonds, and real estate that has been on their books longer than one year 
B) should be selling them soon so they can become short-term profit 
C) have more cash than they need and they are wasting it on long-term investments 
D) are going for a bank loan

Question 10

______ are assets converted into cash within a year.

Accepted Answer

A) Cash flow assets 
B) Current assets 
C) Acid test assets 
D) Deferred assets

Question 11

Kurt has been given an Excel worksheet with his cash flow statement on it.He, by error, sorted the lines of the statement alphabetically.We need to help Kurt separate his cash flows into two categories: inflows and outflows.Which of the following should be a cash inflow?

Accepted Answer

A) interest on bank loans and overdrafts 
B) repayment of dividends to shareholders 
C) repayment of loans 
D) cash sales

Question 12

The financial statement that subtracts cost of goods sold from revenue to arrive at gross profit is is a(n) ______.

Accepted Answer

A) balance sheet 
B) cash flow statement 
C) entrepreneurs scorecard 
D) income statement

Question 13

Sandy's balance sheet is partially completed.However, she has total assets of $120,000 and total stockholder's equity of $15,000.Her liabilities should total $105,000.

Accepted Answer

A) True 
 B)False

Exam 17: Financial Statements and Projections for Startups

Shareholders equity is the same as ______.

Janis went to her accountant and learned about DSO, defined as the ______.

Beckett has purchased a business and now has intangible assets.He has ______.

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 $69,000.

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.

Presenting carefully thought-out financial projections to investors is an exercise in lowering perceived risk in both you as an entrepreneur and your idea.

Jimi is very interested in managing his cash.You mentioned this course to him and tell him about ______.

When a company has long-term investments, it means they ______.

______ are assets converted into cash within a year.

Kurt has been given an Excel worksheet with his cash flow statement on it.He, by error, sorted the lines of the statement alphabetically.We need to help Kurt separate his cash flows into two categories: inflows and outflows.Which of the following should be a cash inflow?

The financial statement that subtracts cost of goods sold from revenue to arrive at gross profit is is a(n) ______.

Sandy's balance sheet is partially completed.However, she has total assets of $120,000 and total stockholder's equity of $15,000.Her liabilities should total $105,000.