5 Written questions
5 Matching questions
- Operating expenses
- Financial management
- Current assets
- Debt-to-equity ratio
- a include marketing, administrative costs, and other expenses not directly related to producing a product or service.
- b calculated by dividing its long-term debt by its shareholders' equity, if it gets too high, it may have trouble meeting its obligations and securing the level of financing needed to fuel its growth.
- c the ability to earn a profit.
- d deals with two activities: raising money and managing a company's finances in a way that achieves the highest rate of return .
- e include cash plus items that are readily convertible to cash, such as accounts receivable, marketable securities, and inventories.
5 Multiple choice questions
- a method for expressing each expense item as a percentage of sales.
- shows the projected flow of cash into and out of the company during a specified period.
- 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.
- a statistical technique used to find relationships between variables for the purpose of predicting future values.
- a report similar to the annual report except that it contains more detailed information about the company's business.
5 True/False questions
Fixed assets → assets used over a longer time frame, such as real estate, buildings, equipment, and furniture.
Stability → the strength and vigor of the firm's overall financial posture.
Pro forma balance sheet → 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.
Operating activities → include net income (or loss), depreciation, and changes in current assets and current liabilities other than cash and short-term debt.
Owner's equity → miscellaneous assets, including accumulated goodwill.