5 Written questions
5 Matching questions
- Operating activities
- Working capital
- Assumptions sheet
- Accounts receivable
- a the ability to earn a profit.
- b money owed to it by its customers.
- c represents the amount of liquid assets the firm has available.
- d include net income (or loss), depreciation, and changes in current assets and current liabilities other than cash and short-term debt.
- e 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.
5 Multiple choice questions
- the equity invested in the business by the owners plus the accumulated earnings retained by the business after paying dividends.
- a statistical technique used to find relationships between variables for the purpose of predicting future values.
- how productively a firm utilizes its assets relative to its revenue and its profits.
- depict relationships between items on a firm's financial statements, used to discern whether a firm is meeting its financial objectives and how it stacks up against its industry peers.
- includes all the direct costs associated with producing or delivering a product or service, including the material costs and direct labor.
5 True/False questions
Net sales → an estimate of a firm's future income and expenses, based on its past performance, its current circumstances, and its future plans.
Current liabilities → include obligations that are payable within a year, including accounts payable, accrued expenses, and the current portion of long-term debt.
Operating expenses → include net income (or loss), depreciation, and changes in current assets and current liabilities other than cash and short-term debt.
Debt-to-equity ratio → a simple ratio that measures the price of a company's stock against its earnings.
Statement of cash flows → summarizes the changes in a firm's cash position for a specified period of time and details why the change occurred.