5 Written Questions
5 Matching Questions
- Owner's equity
- Assumptions sheet
- Income statement
- a a new firm's forecast should be preceded in its business plan by an explanation of the sources of the numbers for the forecast and the assumptions used to generate them.
- b the strength and vigor of the firm's overall financial posture.
- c an estimate of a firm's future income and expenses, based on its past performance, its current circumstances, and its future plans.
- d the equity invested in the business by the owners plus the accumulated earnings retained by the business after paying dividends.
- e reflects the results of the operations of a firm over a specified period of time.
5 Multiple Choice Questions
- itemized forecasts of a company's income, expenses, and capital needs and are also an important tool for financial planning and control.
- a simple ratio that measures the price of a company's stock against its earnings.
- represents the amount of liquid assets the firm has available.
- shows the projected flow of cash into and out of the company during a specified period.
- provides a firm a sense of how its activities will affect its ability to meet its short-term liabilities and how its finances will evolve over time.
5 True/False Questions
Investing activities → include cash raised during the period by borrowing money or selling stock and/or cash used during the period by paying dividends, buying back outstanding stock, or buying back outstanding bonds.
Operating expenses → include marketing, administrative costs, and other expenses not directly related to producing a product or service.
Regression analysis → a statistical technique used to find relationships between variables for the purpose of predicting future values.
Financing activities → include cash raised during the period by borrowing money or selling stock and/or cash used during the period by paying dividends, buying back outstanding stock, or buying back outstanding bonds.
Percent-of-sales method → includes all the direct costs associated with producing or delivering a product or service, including the material costs and direct labor.