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1
The purpose of the pro forma sources and applications of funds is to show how net income and financing were used to increase assets or to pay off debt.
A)True
B)False
2
Breakeven is the volume of sales a venture needs to make profits.
A)True
B)False
3
Salaries and wages for the company should reflect the number of personnel employed as well as their role in the organization.
A)True
B)False
4
Sales revenue for an Internet start-up is often more easier to project.
A)True
B)False
5
To satisfy outside investors, the financial plan will need two years of past financial data.
A)True
B)False
6
In the start-up stage where the venture is very small and limited in time and resources:
A)a software program is not required.
B)the software selected can be very simple and easy to use.
C)a software program may cause delays and increase costs.
D)the software should be capable of performing a variety of tasks.
7
Which of the following would NOT be a current asset?
A)Certificates of deposit that mature in six months
B)Customer receivables
C)Cash
D)Property
8
Which of the following is an example of cash flow?
A)Payment on a loan
B)Sales
C)Depreciation
D)Use of a credit card
9
Which among the following is NOT a forecasting technique used to project sales?
A)Survey of buyer's intentions
B)Sales force opinions
C)Monthly disbursements
D)Time series
10
_____ budgets are used to project cash flows for the cost of goods produced.
A)Capital
B)Operating
C)Production
D)Depreciation





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