Quiz - Budget Planning

Question 1

1. 
   

   A sales budget would include

   Answer
   

   		predicted sales prices and predicted unit sales.
   		predicted sales prices only.
   		predicted unit sales only.
   		predicted inventory costs.
   		a sales budget would include none of the above.

Question 2

1. 
   

   The Fulson Corporation had the following sales forecast available: July 300,000 units, August 320,000 units and September 280,000 units. The July 1st inventory is 80,000 units; if the company’s management wants ending inventory each month equal to 10% of the next month’s sales, how many units should be purchased for August?

   Answer
   

Question 3

1. 
   

   When preparing a company’s cash budget, all of the following are estimates except?

   Answer
   

   		Sales
   		Cash collections
   		Beginning cash balance
   		Production (or purchase) costs

Question 4

1. 
   

   An individual’s personal financial equity is referred to as

   Answer
   

   		Owner’s equity
   		Capital
   		Net worth
   		Wealth

Question 5

1. 
   

   How many units did your company (i.e. class section) sell during the most recent day of operations at your lemonade stand?

   Answer
   

Quiz - Cost Analysis

Question 1

1.  Which of the following costs would be classified as a manufacturing overhead cost for a packaged foods production company?
   Answer
   

   		Wages for a salesperson
   		Pasta or rice
   		Utilities for the factory
   		Salary for an assembly line manager
   		Wages for an assembly machine operator
   		Two of the above are correct

Question 2

1. Which of the following costs would be classified as a fixed cost for a packaged foods production company?
   Answer
   

   		Wages for a salesperson
   		Pasta or rice
   		Utilities for the factory
   		Salary for an assembly line manager
   		Wages for an assembly machine operator
   		Two of the above are correct

Question 3

1.  Contribution margin is:
   Answer
   

   		Total sales – variable costs per unit
   		Sales price per unit – variable costs per unit– total fixed costs
   		Total sales + total variable costs + total fixed costs
   		Sales price per unit – variable cost per unit
   		Sales price per unit – fixed cost per unit

Question 4

1.  The Forrest Corporation had the following information available related to its operations: (a) unit sales price of $80, (b) variable cost per unit of $26 and (c) total fixed costs of $1,200. What is the company’s break-even point in units rounded to the nearest whole unit?
   Answer
   

Question 5

1.  What were your company’s (i.e. class section in Lemonade Tycoon) revenues for the most recent day of operations?
   Answer
   

Quiz - Financial Statements

Question 1 

1. Which financial statement would indicate what things a company owns?

   Answer
   

   		Statement of Cash Flows
   		Balance Sheet
   		Income Statement
   		Statement of Owners' Equity

Question 2 

1. Inventory

   Answer
   

   		is effectively the same as revenue.
   		is what the company intends to use in its operations.
   		is what the company intends to sell.
   		equals amounts owed by the company’s customers.
   		is effectively the same as equipment.

Question 3 

1. Accounts payable represents

   Answer
   

   		amounts owed to the company by owners.
   		amounts owed by the company to owners.
   		amounts owed to the company by customers.
   		amounts owed by the company to creditors.

Question 4

1. Which financial statement would give the best indication of a company's ability to generate a profit?

   Answer
   

   		Statement of Cash Flows
   		Balance Sheet
   		Income Statement
   		Statement of Owners' EquityQuestion 5

1. If a company reported total assets of $12,000 and total liabilities of $4,000 then what is the company’s total equity?

   Answer