Business Revision Quiz 1 - Breakeven, Forecasting, Balance S

What kind of correlation is best when using the technique to inform marketing forecasts

• Strong correlation

• Negative correlation

• Positive correlation

• Weak correlation

If demand for a product is found to increase as outside air temperatures rise, this would suggest

• Strong fit

• Positive correlation

• Negative correlation

• No correlation

A moving average is particularly useful for pointing out

• How competitors will respond to price changes

• Qualitative changes in a market

• Key changes in the nature of demand

• A historical growth trend

A key benefit of using extrapolation in sales forecasting is that it is

• Highly accurate

• Reliable over the long-term

• Not affected by external factors

• Relatively quick and cheap

All of the following represent limitations of sales forecasting except

• Can improve efficiency and profitability

• Long-range sales forecasts tend to be less reliable

• Can involve complex calculations

• Does not factor in changes in external environment

The sales forecasting technique that involves making future predictions based on trends identified from past data is

• Corroboration

• Cash flow analysis

• Extrapolation

• Time series analysis

The reason why a balance sheet always balances is because

• Every transaction has two offsetting effects

• Assets cannot be bought without cash

• It is drawn up by an accountant

• It is called the balance sheet

The key difference between current liabilities and long term liabilities is

• When they need to be settled

• Whether they involve the banks or not

• How large they are

• Whether there is enough cash to pay them

What is depreciation

• An estimate of the fall in value of a fixed asset over time

• A cash flow caused by buying fixed assets

• An increase in the value of a currency

• A cost arising when customers fail to pay their bills

Which of these would be included within non-current assets

• Land and buildings

• Trade debtors

• Short-term investments and deposits

• Inventories held for resale