Financial Forecasting, Finance And Accounting

Question: A company has a post-money valuation of $500,000. The last investor put in $100,000. The pre-money valuation before the investor came in was _________________.
A
$400,000

B
$600,000

C
$1,000,000

D
$100,000

Note: Not available
1. Report
Question: Why does a Balance Sheet balance (assets = liabilities + equity)?
A
It is required by law.

B
Companies force it to balance.

C
Accounting is a double-entry system of equal debits and credits.

D
Auditors make adjustments to make it balance.

Note: Not available
1. Report
Question: The primary financial statements that are forecast are _________________.
A
income statement only

B
retained earnings and cash flow

C
balance sheet and trial balance

D
income statement, balance sheet, and cash flow

Note: Not available
1. Report
Question: Which of the following is NOT an operating expense?
A
Rent

B
Accounts Payable

C
Insurance

D
Bank fees

Note: Not available
1. Report
Question: An operating budget in a corporate setting is usually prepared ________________.
A
for the following fiscal year

B
for the next 5 years

C
one month at a time

D
None of these; an operating budget is not typically created in a corporate setting.

Note: Not available
1. Report
Question: Why would a company perform a variance/sensitivity analysis?
A
It is a required financial statement.

B
Auditors will ask for it.

C
Shareholders require the document.

D
To see how the forecast model changes based on changing dynamic inputs

Note: Not available
1. Report
Question: Depreciation on the Balance Sheet reflects ___________________.
A
the current period depreciation

B
Tax Liability

C
Total Assets

D
cumulative depreciation on fixed assets

Note: Not available
1. Report
Question: For which of the following company structures is it easiest to issue shares?
A
LLC

B
C Corporation

C
Sole Proprietorship

D
LLP

Note: Not available
1. Report
Question: Why might someone forecast future years as one annual number?
A
The forecaster is lazy.

B
It is the best method for forecasting future years.

C
It saves management time and energy.

D
Because it is difficult to predict what will happen, applying a growth percentage to the year is the most reasonable assumption.

Note: Not available
1. Report
Question: Why is it reasonable for a startup company to forecast a Net Loss for several years?
A
A company can never make money in its first years.

B
It reduces tax liability in future years.

C
As the company launches and grows, expenses will often exceed any revenue-generating abilities; hence, the expected payoff will not come until future years.

D
It's not reasonable and should not be done.

Note: Not available
1. Report

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Question: A company has a post-money valuation of $500,000. The last investor put in $100,000. The pre-money valuation before the investor came in was _________________.

Question: Why does a Balance Sheet balance (assets = liabilities + equity)?

Question: The primary financial statements that are forecast are _________________.

Question: Which of the following is NOT an operating expense?

Question: An operating budget in a corporate setting is usually prepared ________________.

Question: Why would a company perform a variance/sensitivity analysis?

Question: Depreciation on the Balance Sheet reflects ___________________.

Question: For which of the following company structures is it easiest to issue shares?

Question: Why might someone forecast future years as one annual number?

Question: Why is it reasonable for a startup company to forecast a Net Loss for several years?