Entrepreneurship of Financial Statements and Projections for Startups MCQs
Entrepreneurship of Financial Statements and Projections for Startups MCQs
These Entrepreneurship of Financial Statements and Projections for Startups multiple-choice questions and their answers will help you strengthen your grip on the subject of Entrepreneurship of Financial Statements and Projections for Startups. You can prepare for an upcoming exam or job interview with these 50 Entrepreneurship of Financial Statements and Projections for Startups MCQs.
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1: Money owed by a business to its suppliers.
A. Accounts Payable
B. Accounts Receivable
C. Accrued Expenses
D. Backlog
2: Which of correct statement about Accounts Receivable?
A. Orders that have been received but not delivered to the customer.
B. invests in early-stage and emerging companies because of perceived long-term growth potential.
C. Money owed to the company for goods or services provided and billed to a customer.
D. None of these
3: In accrued expenses costs incurred by the company for which no payment has been made.
A. True
B. false
4: Orders that have been received but not delivered to the customer are called ?
A. Balance Sheet
B. Bottom-Up
C. Backlog
D. None of these
5: Backlog shows what the company owes, what it owns, including the shareholder’s stake, at a particular point in time ?
A. Balance Sheet
B. Top
C. Bottom-Up
D. All correct
6: Estimating revenues and costs from the smallest unit of sales, such as a day is known as ?
A. Bottom-Up Method
B. Capital Stock
C. Cash Conversion Cycle (CCC)
D. Incorrect statement
7: In capital Stock the original amount the owners paid into the company plus any additional paid-in capital to purchase stock in the company.
A. True
B. False
8: The number of days a company’s cash is tied up in the production and sales process is known as
A. Cash Flow Statement
B. Cash Conversion Cycle (CCC)
C. Compensation Policy
D. Credit Policy
9: A financial report that details the inflows and outflows of cash for a company over a set period of time are called ?
A. Cash Flow Statement
B. Cash Conversion Cycle (CCC)
C. Compensation Policy
D. Credit Policy
E. Compensation Policy
10: In compensation policy The level of compensation and benefits for each type of position in the business.
A. True
B. False
11: which process obligations to pay for products and services sold will be billed and collected.
A. Current Liabilities
B. Current Assets
C. Days of Inventory
D. Credit Policy
12: _______ assets that can be converted into cash within a year.
A. Current Liabilities
B. Current Assets
C. Days of Inventory
D. Credit Policy
13: Bills that must be paid within 1 year of the date of the balance sheet is best statement for___.
A. Current Liabilities
B. Current Assets
C. Days of Inventory
D. Credit Policy
14: DOI stand for in Entrepreneurship
A. Days of Inventory
B. Digital Object Identifier
C. Days Payable Outstanding
D. Days Sales Outstanding
15: A measure of the number of days it takes you to pay your bills is best statement for
A. Days of Inventory
B. Digital Object Identifier
C. Days Payable Outstanding
D. Days Sales Outstanding
16: DSO measures the number of days that it takes to collect on accounts receivable.
A. True
B. False
17: A financial report that shows revenue, expenses, and profit for a period of time, typically a month, quarter, or year is known as
A. Income Statement
B. Intangible Assets
C. Interest Expense
D. Inventory Policy
18: In intangible assets the value of patents, software programs, copyrights, trademarks, franchises, brand names, or assets that cannot be physically touched.
A. True
B. False
19: Which of the correct statements is interest expense?
A. The level of various types of inventory (e.g., raw materials, work-in-process, finished goods) maintained and the speed with which inventory moves from the business to the customer.
B. The extent of the company’s debt burden as well as representing any interest owed on borrowed money.
C. Economic obligations of the company, such as money owed to lenders, suppliers, and employees.
D. All statement are relevant to Interest expensive
20: Inventory moves from the _____
A. Employment to the customer.
B. customer to the customer.
C. business to the customer.
D. None of these
21: Economic obligations of the company, such as money owed to lenders, suppliers, and employees is best statement for
A. Liabilities
B. intangible Assets
C. Interest Expense
D. Long-Term Debt
22: Obligation for debt that is due to be repaid in more than 12 months is best statement for
A. Long-Term Debt
B. Long-Term Investments
C. Net Income
D. Operating Profit
23: Long-Term Investments assets that are
A. more than 1 year old
B. more than 10 year old
C. more than 3 year old
D. more than 2 year old
24: Net Income indicates:
A. over from revenue once all costs and expenses are subtracted.
B. what is left after all costs, expenses, and taxes have been paid.
C. Both a & b
D. None of these
25: In operating profit the amount left over from revenue once all costs and expenses are subtracted
A. True
B. False
26: Short-term liabilities that do not fall into a specific category, such as
A. Sales text & income text
B. Not giving any text
C. Both a&b
D. None of these
27: The process and timing in which obligations to pay for goods and services received by the business will be paid is known as
A. Payables Policy
B. Prepaid Expenses
C. Pricing Policy
D. None of these
28: Which statement is true about Prepaid Expenses?
A. How pricing will be determined for your products and services.
B. Refers to data gathered by yourself through sources such as focus groups, interviews, and surveys.
C. The payments the company has already made for services not yet received.
D. All statement are incorrect
29: How pricing will be determined for your products and services.
A. Pricing will be determined for you
B. customer value pricing
C. psychological price barriers
D. contribution pricing
E. Products & services.
30: Primary research refers to data gathered by yourself through sources such as focus groups, interviews, and surveys
A. True
B. False
31: The price and timing of raw materials and other goods and services necessary to build, sell, and support productsThis statement relate to
A. Retained Earnings
B. Secondary Research
C. Purchasing Policy
D. None of these
32: Definition of Retained Earnings
A. The money that has been invested in the business plus the cumulative net profits and losses the company has generated.
B. data gathered from external sources such as industry publications, websites, government agencies
C. Both options a and b
D. The cumulative amount of profit retained by the company and not paid out in the form of dividends to owners.
33: Secondary research refers to data gathered from _______ such as industry publications, websites, government agencies, and so on.
A. Shareholder Equity
B. Secondary Research
C. Purchasing Policy
D. None of these
34: In shareholder equity the money that has been ________ plus the cumulative net profits and losses the company has generated.
A. invested in the business
B. invested in the hotel
C. Invested on poor people
D. None of these
35: In Short-Term Debt the portion of long-term debt that must be paid within a year.
A. True
B. False
36: Which is true with respect to building pro forma financial statements?
A. You should provide at least five scenarios of your financial forecast.
B. Creating a pro forma statement is a relatively quick process, given all the dynamic tools available online.
C. Pro forma financial plans must be both strategically compelling and operationally achievable.
D. Pro forma financial plans should use real numbers, not base estimates on assumption.
37: Which of the following relationships between financial statements is accurate?
A. Net profit on the income statement is equal to retained earnings on the balance sheet.When a sale is made, the value of the product is moved from cost of goods on the income statement to inventory on the balance sheet.
B. When a sale is made, the value of the product is moved from cost of goods on the income statement to inventory on the balance sheet.
C. The ending cash balance on the cash flow statement is equal to the cash on the balance sheet.
D. When a sale is made, and the product or service is accepted by the customer, revenue on the balance sheet increases, and inventory on the income statement decreases.
38: A ______ financial statement gives one an idea of how the actual statement will look if the underlying assumptions hold true.
A. futures
B. projected revenue
C. potential income
D. pro forma
39: ______ refers to the number of days a company’s cash is tied up in the production and sales process.
A. Cash flow statement
B. Collection period
C. Cash conversion cycle
D. Return on assets
40: The ______ (also known as the profit and loss statement) is a financial report that measures the financial performance of your business on a monthly or annual basis.
A. balance sheet
B. cash flow statement
C. income statement
D. break-even statement
41: Which of the following is true with respect to financial projections for startups?
A. Venture capitalists often perform their own financial projections prior to making an investment decision.
B. Entrepreneurs often lose out on financing because they follow the generally accepted accounting principle of conservatism, thus showing too low a rate of financial return.
C. Often entrepreneurs build their financial projections based on third-party data sources that are misinterpreted.
D. Presenting well-thought out financial projections can serve to increase perceived risk in your idea, and you as an entrepreneur.
42: ______ is determined by accounting principles and includes accruals and noncash items such as depreciation and amortization. ______ only deals with actual cash transactions.
A. Retained earnings; Current liabilities
B. Net profit; Cost of goods sold
C. Shareholder equity; Current assets
D. Net income; Cash flow
43: The ______ is a financial report that shows what the company owes, and what it owns, including the shareholders’ stake, at a particular point in time.
A. balance sheet
B. cash flow statement
C. income statement
D. break-even statement
44: In determining which market(s) to enter, Manny’s Cookies examined publicly available demographic data, including census reports and other local government data to ascertain whether a given market had a sufficient customer base. The type of research Manny’s Cookies was conducting is called ______.
A. primary
B. focus group
C. secondary
D. external
45: In many types of businesses, the people who work for the business (i.e., labor) can account for ______ of operating costs.
A. 40–50%
B. 15–25%
C. 75–85%
D. 30–40%
46: Using comparable data that you gathered during your research to compare with financial statements of existing businesses allows you to conduct the ______.
A. sensitivity analysis
B. reasonableness test
C. integrated financial statement
D. pricing policy
47: ______ is a measure of the number of days it takes to collect on accounts receivable.
A. DPO
B. DIO
C. DSO
D. DTO
48: When conducting a ______, a minimum of three scenarios is recommended: best case, worst case, and likely case.
A. sensitivity analysis
B. reasonableness test
C. integrated financial statement
D. pricing policy
49: ______ expenses are the expenditures that the company makes to generate income.
A. Operating
B. Inventory
C. Equipment
D. Interest
50: ______ is a measure of the number of days it takes you to pay your bills.
A. DPO
B. DIO
C. DSO
D. DTO
Entrepreneurship of Financial Statements and Projections for Startups MCQs
