Financial Forecasting, Finance And Accounting

Question: In which of the following sections would a startup company record an investment by a venture capital firm?
A
Cash from Investing

B
Net Income

C
Cash from Operations

D
Cash from Financing

Note: Not available
1. Report
Question: In what way are the Balance Sheet and the Cash Flow Statement linked in a dynamic forecast?
A
There is no relationship between the two.

B
Changes in Accounts Receivable are carried over to the Cash Flow Operating Activities section.

C
Net Income is determined on the Balance Sheet and carried over to the Cash Flow Statement.

D
Tax liability is calculated using both statements.

Note: Not available
1. Report
Question: The term "revenue driver" refers to ____________________.
A
the per-unit sales price

B
any factor that drives revenue, such as site impressions

C
the total revenue by product

D
the total revenue

Note: Not available
1. Report
Question: A simple method of calculating variance is to _________________.
A
apply a percentage increase/decrease to each line item on the P&L

B
build an entirely new model for each

C
use current interest rates

D
look at the company's FICA score

Note: Not available
1. Report
Question: Which of the following is the accepted format for a forecasted P&L?
A
Expenses first, then Revenue

B
Revenue, COGS, Operating Expenses

C
Taxes, COGS, Revenue, Operating Expenses

D
Assets, Liabilities, Equity

Note: Not available
1. Report
Question: What is the purpose of a summary page?
A
It is required by the IRS.

B
It saves the financial model creator from having to delve into details.

C
It makes the financial model creator look smart.

D
It gives a quick overview of the forecasted outcomes for various financials.

Note: Not available
1. Report
Question: Would it be better to create detailed input that individually forecasts expenses or to create a simple, one-line input for Operating Expenses?
A
Simple input: it will save the end user a lot of time.

B
Simple input: it's not worth figuring out the specifics of Operating Expenses.

C
Detailed input: each expense grows based on different variables.

D
Detailed input: the model looks more impressive if there are more line items.

Note: Not available
1. Report
Question: A normal revenue model will _______________.
A
decline in revenue due to restructuring

B
decline in revenue as the initial buzz wears off

C
have straight line revenues

D
increase revenues over time

Note: Not available
1. Report
Question: For most new ventures in the process of creating a forecast, the expense that warrants the most detailed analysis and input is _____________.
A
wages

B
rent

C
telephone and utilities

D
benefits

Note: Not available
1. Report
Question: Overall, what is the purpose of a Cash Flow Statement?
A
It shows how the company received and spent cash each period.

B
It is used to determine whether a company should pay dividends

C
It shows Net Income.

D
It determines tax liability.

Note: Not available
1. Report

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Question: In which of the following sections would a startup company record an investment by a venture capital firm?

Question: In what way are the Balance Sheet and the Cash Flow Statement linked in a dynamic forecast?

Question: The term "revenue driver" refers to ____________________.

Question: A simple method of calculating variance is to _________________.

Question: Which of the following is the accepted format for a forecasted P&L?

Question: What is the purpose of a summary page?

Question: Would it be better to create detailed input that individually forecasts expenses or to create a simple, one-line input for Operating Expenses?

Question: A normal revenue model will _______________.

Question: For most new ventures in the process of creating a forecast, the expense that warrants the most detailed analysis and input is _____________.

Question: Overall, what is the purpose of a Cash Flow Statement?