Score for this quiz: 92.5 out of 100

Submitted Nov 19 at 5:40pm

This attempt took 41 minutes.

Question 1

2.5 / 2.5 pts

In projecting cash flows the most difficult problem is in determining the exact amount of

monthly receipts and disbursements.

True

False

Question 2

2.5 / 2.5 pts

Break-even is that volume of sales at which there are neither profits nor losses.

True

False

Question 3

2.5 / 2.5 pts

In projecting operating expenses for the second and third year costs like ______ are

likely to remain stable unless new equipment or additional space is purchased.

cost of goods sold

advertising

gross profit

insurance

Question 4

2.5 / 2.5 pts

______ is projected net profit calculated from projected revenue minus projected costs

and expenses.

Pro forma Income

Net sales

Gross profit

Cost of goods sold

Question 5

2.5 / 2.5 pts

The indirect method of projecting cash flow is the most popular.

True

False

Question 6

2.5 / 2.5 pts

Sales in excess of the break-even point will result in a profit, as long as the selling price

remains above the cost to produce each unit.

True

False

Question 7

2.5 / 2.5 pts

As long as the selling price is greater than the _______________ cost per unit, some

contribution can be made to cover ________________.

variable; fixed costs

fixed; variable costs

fixed; negative cash flow

total; expenses

Question 8

2.5 / 2.5 pts

Rent and insurance are examples of variable costs.

False

True

Question 9

2.5 / 2.5 pts

Cash flow is the result of subtracting expenses from sales.

False

True

Question 10

2.5 / 2.5 pts

The _____ budget is used to project cash flows for the cost of goods produced.

capital

operating

production

depreciation

Question 11

2.5 / 2.5 pts

The indirect method of projecting cash flow uses a simple determination of cash in less

cash out.

False

True