WorksheetsENTR Finance Unit 6 Review
Total questions: 20
Worksheet time: 11mins
Which of these is not classified as a variable expense?
Insurance
Labor
Materials
Shipping
What happens to the Cost of Goods Sold if the cost of one of the materials to make the product goes up?
The cost of goods sold increases
The cost of goods sold decreases
The cost of goods sold stays the same
Which one of these is not considered variable labor?
salary
hourly pay + commission
hourly pay during a busy season
bonus paid based on sales
What happens to the contribution margin when the cost to buy your product from a manufacturer goes up?
The contribution margin increases.
The contribution margin decreases.
The contribution margin stays the same.
If the selling price of your product is $16 and the variable expense to make/sell that product is $5, (a) is the contribution margin?
Do fixed expenses increase or decrease based on how much of a product a company sells?
increase
decrease
Fixed expenses do not change based on how much of a product the company sells.
Which of these are not considered a fixed expenses?
Rent
Utilities
Materials
Equipment
An accounting method of spreading the total cost of equipment over the number of years it will be used is called -
expensing
depreciation
equating
interest
What is the break even point?
When the burn rate reaches a 6 month limit
The point at which a business starts losing money
When the business covers the cost of goods sold
When the business has sold enough units to cover the cost of its expenses.
This is the correct formula to measure Cash Flow/Net Cash:
Net Cash = Cash Inflow + Cash Outflow
Net Cash = Cash Inflow * Cash Outflow
Cash Inflow - Cash Outflow = Net Cash
Beginning cash - ending cash = Net cash
What is the first step in creating a sales forecast?
review past sales
estimate your future sales
analyze current conditions
make educated predictions about the future
What occurs when a business' expenses are higher than their revenues?
A profit
A loss
Net Cash
Revenue
A fiscal year is defined as -
A calendar year from Jan 1 - Dec 31.
Any 12 month period you choose to treat as your accounting period
June 2022 - July 2023
a year from the time you make your first sale
Income statements include only one of the following -
Expenses
Liabilities
Assets
Owner's Equity
Debt financing include all of the following except -
bank loans
credit unions
use of credit cards
angel investor
Equity financing include all of the following options except -
bank loans
angel investor
venture capital
friends and relatives
A disadvantage of using a bank or a credit union to finance your business is -
the bank or credit union with expect a percentage of your profits
the bank owns your business
you have to pay back the loan with interest
you get the money up front
how much of each dollar of sales the company keeps as profit is known as the
debt-to-equity ratio
debt ratio
rate on sales (or profit margin)
working capital
Everything the business OWES is a/an -
asset
liability
equity
expense
An example of an asset is
cash
accounts payable
a loan
an expense
