Whatsapp: +1 432-201-8290
Pro forma financial statements are used toQuestion 1
| | a. find the contribution margin | |
| | b. show the results of some assumed event | |
| | c. predict the sensitivity of different output variables | |
| | d. show the results of an actual event |
0.4 points
Question 2
1.
An example of an investing activity is:
| | a. Issuing new corporate stock | |
| | b. Paying corporate income taxes | |
| | c. Buying new computers | |
| | d. Taking out a new loan. |
0.4 points
Question 3
1.
The value of debt and equity securities is based upon:
| | a. The type of investment vehicle | |
| | b. The growth potential of the asset | |
| | c. The accounting method used for recording the asset | |
| | d. The present value of the cash flows that the securities are expected to provide. |
0.4 points
Question 4
1.
Which of the following is defined as the systematic allocation of the cost of an asset over more than one period?
| | a. Deferral | |
| | b. Expensing | |
| | c. Optimization | |
| | d. Depreciation |
0.4 points
Question 5
1.
Peerless believes that its sales next year will increase 20 percent from the current level of $800,000. Management calculates that assets must incr
Pro forma financial statements are used to
Question 1
1.
Pro forma financial statements are used to:
|
|
a. find the contribution margin
|
|
|
|
b. show the results of some assumed event
|
|
|
|
c. predict the sensitivity of different output variables
|
|
|
|
d. show the results of an actual event
|
0.4 points
Question 2
1.
An example of an investing activity is:
|
|
a. Issuing new corporate stock
|
|
|
|
b. Paying corporate income taxes
|
|
|
|
c. Buying new computers
|
|
|
|
d. Taking out a new loan.
|
0.4 points
Question 3
1.
The value of debt and equity securities is based upon:
|
|
a. The type of investment vehicle
|
|
|
|
b. The growth potential of the asset
|
|
|
|
c. The accounting method used for recording the asset
|
|
|
|
d. The present value of the cash flows that the securities are expected to provide.
|
0.4 points
Question 4
1.
Which of the following is defined as the systematic allocation of the cost of an asset over more than one period?
|
|
a. Deferral
|
|
|
|
b. Expensing
|
|
|
|
c. Optimization
|
|
|
|
d. Depreciation
|
0.4 points
Question 5
1.
Peerless believes that its sales next year will increase 20 percent from the current level of $800,000. Management calculates that assets must increase $110,000 to support the new sales level, and current liabilities will increase $70,000. What total financing will be needed?
|
|
a. $40,000
|
|
|
|
b. $1,600
|
|
|
|
c. $33,600
|
|
|
|
d. $8,000
|
0.4 points
Question 6
1.
In preparing a statement of cash flows, the ____ method involves adjusting net income to reconcile it to net cash flows from operating activities.
|
|
a. direct
|
|
|
|
b. indirect
|
|
|
|
c. accrual
|
|
|
|
d. none of the above
|
0.4 points
Question 7
1.
Ship-to-Shore earned $280,000 after taxes last year. Its expenses included depreciation of $55,000, interest expenses of $40,000 and deferred taxes of $20,000. The company also purchased two new fresh water fishing boats for $40,000 ($20,000) each. What is Ship-to-Shore?s after-tax cash flow for last year?
|
|
a. $395,000
|
|
|
|
b. $355,000
|
|
|
|
c. $315,000
|
|
|
|
d. $280,000
|
0.4 points
Question 8
1.
Dippity Doo-Dah Party Dips has revenues of $50,000, general & administrative expenses of $35,000, interest expense of $4,000 and depreciation expense of $4200. The firm is in the 38% tax bracket. What would be the firm s cash flow from operations?
|
|
a. $4216
|
|
|
|
b. $4000
|
|
|
|
c. $8416
|
|
|
|
d. $6,800
|
0.4 points
Question 9
1.
The financial statement that shows the effects of a company?s operating, investing, and financing activities on its cash balance is known as the:
|
|
a. cash budget statement
|
|
|
|
b. pro forma financial statement
|
|
|
|
c. statement of cash flows
|
|
|
|
d. breakeven analysis
|
0.4 points
Question 10
1.
To decrease the additional financing needed to support an increase in sales, management can
|
|
a. decrease notes payable
|
|
|
|
b. retire common stock
|
|
|
|
c. increase the dividend payout
|
|
|
|
d. cut dividends
|
0.4 points
Question 11
1.
In the percent-of-sales forecasting method, which of the following is (are) assumed to increase proportionately with sales?
|
|
a. Cash
|
|
|
|
b. accounts receivable
|
|
|
|
c. accounts payable
|
|
|
|
d. all of the above
|
0.4 points
Question 12
1.
Cash budgeting can be employed effectively by management to
|
|
a. identify potential cash flow problems in advance
|
|
|
|
b. aid them in capital budgeting
|
|
|
|
c. control retained earnings
|
|
|
|
d. coordinate cash and deferred expenses
|
0.4 points
Question 13
1.
All the following current liabilities normally vary directly with the sales except:
|
|
a. accounts payable
|
|
|
|
b. notes payable
|
|
|
|
c. accrued wages
|
|
|
|
d. accrued taxes
|
0.4 points
Question 14
1.
Using a cash budget is more useful than the percentage of sales method because: I. It can more precisely estimate the amount of financing needed. II. It can better estimate the time of financing need.
|
|
a. I only
|
|
|
|
b. II only
|
|
|
|
c. Both I and II
|
|
|
|
d. Neither I nor II
|
0.4 points
Question 15
1.
A good operational plan incorporates a plan for:
|
|
a. the unionization of its business.
|
|
|
|
b. a solid organizational chart with detailed job descriptions.
|
|
|
|
c. the resources a firm will need to obtain its long term objectives.
|
|
|
|
d. all of the above
|