3599166
Description
Quiz by Cristian Quintanilla, updated more than 1 year ago
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Created by Cristian Quintanilla
over 8 years ago
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Question 1
Question
The strategic financial plans are planned long-term financial actions and the anticipated financial impact of those actions.
Answer
- True
- False
Question 2
Question
If the net cash flow is less than the minimum cash balance, financing is required
Answer
- True
- False
Question 3
Question
Cash planning involves the preparation of the firm's income statement
Answer
- True
- False
Question 4
Question
A 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.
Answer
- True
- False
Question 5
Question
The sales forecast, cash budget, and pro forma financial statements are the key outputs of the short-run (operating) financial plan
Answer
- True
- False
Question 6
Question
The 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.
Answer
- True
- False
Question 7
Question
The "plug" figure that is used as a balancing account in the pro forma balance sheet is retained earnings
Answer
- True
- False
Question 8
Question
The 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
Answer
- True
- False
Question 9
Question
The cash budget gives the financial manager a clear view of the timing of the firm's expected profitability over a given period
Answer
- True
- False
Question 10
Question
A firm's net cash flow is the mathematical difference between the firm's beginning cash and its cash disbursements in each period
Answer
- True
- False
Question 11
Question
The financial planning process begins with short-run plans and budgets that in turn guide the formulation of long-run financial plans
Answer
- True
- False
Question 12
Question
A 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
Answer
- True
- False
Question 13
Question
Pro forma financial statements are used primarily to assess a firm's historical performance
Answer
- True
- False
Question 14
Question
Any firm with a positive growth rate in sales will require some amount of external funding, assuming all existing ratios are to be maintained
Answer
- True
- False
Question 15
Question
An 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
Answer
- True
- False
Question 16
Question
The financial planning process begins with __________ financial plans that in turn guide the formation of __________ plans and budgets
Answer
-
long-run; operating
-
strategic; operating
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short-run; long-run
-
long-run; short-run
Question 17
Question
The key aspects of the financial planning process are:
Answer
-
investment planning and profit planning
-
cash planning and financing
-
cash planning and investment planning
-
cash planning and profit planning
Question 18
Question
Pro form statements are used for:
Answer
-
profit planning
-
credit analysis
-
cash budgeting
-
all of the above
Question 19
Question
Which of the following would be the lease likely to utilize pro forma financial statements or a cash budget?
Answer
-
top management
-
middle management
-
investors
-
lenders
Question 20
Question
The __________ is a financial projection of the firm's short-term cash surpluses or shortages
Answer
-
operating plan
-
cash budget
-
strategic plan
-
pro forma income statement
Question 21
Question
__________ forecast is based on the relationships between the firm's sales and certain economic indicatiors
Answer
-
A sales
-
An internail
-
A pro forma
-
An external
Question 22
Question
Key inputs to short-term financial planning are:
Answer
-
leverage analysis
-
economic forecasts
-
sales forecasts, operating, and financial data
-
financial budgets
Question 23
Question
Of the following, generally, the easiest to estimate are:
Answer
-
cash sales
-
cash disburesments
-
cash receipts
-
short-term borrowings
Question 24
Question
The percent-of-sales method of preparing the pro forma income statement assumes that all costs are:
Answer
-
fixed
-
independent
-
constant
-
variable
Question 25
Question
___________ generally reflects the anticipated financial impact of long-term actions
Answer
-
an operating financial plan
-
a strategic financial plan
-
a pro forma income statement
-
a cash budget
Question 26
Question
The primary purpose in preparing a budget is:
Answer
-
for profit planning
-
for risk analysis
-
to estimate sales
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for cash planning
Question 27
Question
All of the following accounts are used in the preparation of the cash budget, EXCEPT:
Answer
-
cash receipts
-
depreciation
-
cash disbursements
-
excess cash
Question 28
Question
Holding other things constant, the additional funds required for financing the firm's operations would be reduced with an increase in the firm's
Answer
-
dividend ration payout
-
profit margin
-
capital intensity ration
-
tax rate
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