Test
Chapter 15 - Financial Planning, Forecasting and Cash Budgets
Preguntas del test (28)
1The strategic financial plans are planned long-term financial actions and the anticipated financial impact of those actions.
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2If the net cash flow is less than the minimum cash balance, financing is required
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3Cash planning involves the preparation of the firm's income statement
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4A positive external funds requirement would indicate that the firm's financing is in excess of its needs and that funds would therefore be available for repaying debt, repurchasing stock, or increasing the dividend to stockholders.
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5The sales forecast, cash budget, and pro forma financial statements are the key outputs of the short-run (operating) financial plan
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6The excess cash balance is the amount available for investment by the firm if the desired minimum cash balance is less than the period's ending cash.
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7The "plug" figure that is used as a balancing account in the pro forma balance sheet is retained earnings
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8The pro forma statements provide the financial manager with the amount of external financing required to support a given level of sales as well as a basis for analyzing in advance the level of profitability and overall financial performance of the firm in the coming year
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9The cash budget gives the financial manager a clear view of the timing of the firm's expected profitability over a given period
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10A firm's net cash flow is the mathematical difference between the firm's beginning cash and its cash disbursements in each period
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11The financial planning process begins with short-run plans and budgets that in turn guide the formulation of long-run financial plans
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12A typical sales forecast, though concerned with future events, will usually be based on recent historical trends and events as well as on forecasts of economic prospects
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13Pro forma financial statements are used primarily to assess a firm's historical performance
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14Any firm with a positive growth rate in sales will require some amount of external funding, assuming all existing ratios are to be maintained
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15An increase in the firm's inventory balance will normally require additional financing, unless the increase is matched by an equally large decrease in some other assets account
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16The financial planning process begins with __________ financial plans that in turn guide the formation of __________ plans and budgets
- Along-run; operating
- Bstrategic; operating
- Cshort-run; long-run
- Dlong-run; short-run
17The key aspects of the financial planning process are:
- Ainvestment planning and profit planning
- Bcash planning and financing
- Ccash planning and investment planning
- Dcash planning and profit planning
18Pro form statements are used for:
- Aprofit planning
- Bcredit analysis
- Ccash budgeting
- Dall of the above
19Which of the following would be the lease likely to utilize pro forma financial statements or a cash budget?
- Atop management
- Bmiddle management
- Cinvestors
- Dlenders
20The __________ is a financial projection of the firm's short-term cash surpluses or shortages
- Aoperating plan
- Bcash budget
- Cstrategic plan
- Dpro forma income statement
21__________ forecast is based on the relationships between the firm's sales and certain economic indicatiors
- AA sales
- BAn internail
- CA pro forma
- DAn external
22Key inputs to short-term financial planning are:
- Aleverage analysis
- Beconomic forecasts
- Csales forecasts, operating, and financial data
- Dfinancial budgets
23Of the following, generally, the easiest to estimate are:
- Acash sales
- Bcash disburesments
- Ccash receipts
- Dshort-term borrowings
24The percent-of-sales method of preparing the pro forma income statement assumes that all costs are:
- Afixed
- Bindependent
- Cconstant
- Dvariable
25___________ generally reflects the anticipated financial impact of long-term actions
- Aan operating financial plan
- Ba strategic financial plan
- Ca pro forma income statement
- Da cash budget
26The primary purpose in preparing a budget is:
- Afor profit planning
- Bfor risk analysis
- Cto estimate sales
- Dfor cash planning
27All of the following accounts are used in the preparation of the cash budget, EXCEPT:
- Acash receipts
- Bdepreciation
- Ccash disbursements
- Dexcess cash
28Holding other things constant, the additional funds required for financing the firm's operations would be reduced with an increase in the firm's
- Adividend ration payout
- Bprofit margin
- Ccapital intensity ration
- Dtax rate
Información
- Descripción
- Test sobre Chapter 15 - Financial Planning, Forecasting and Cash Budgets, creado por Cristian Quintanilla el 28/09/2015.
- Autor
- Cristian Quintanilla
- Idioma
- English
- Visitas
- 161
- Valoración
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