Test for current control 3
Authored by Елена Ахунова
Education
University
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50 questions
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1.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
Describe the percent-of-sales method of financial forecasting.
It assumes that balance sheet accounts maintain a constant relationship to sales
It requires more time than a cash budget approach
It is more detailed than a cash budget approach
It provides a month-to-month breakdown of data
2.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
Find the statement that is true in the case of the percent-of-sales method.
As the dividend payout ratio goes up, the required new funds also rise
As the dividend payout ratio rises, required new funds decline
The dividend payout ratio does not affect new funds
A change to the ex-dividend date causes the required new funds to change
3.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
When using the percent-of-sales method in forecasting funds needed, which of the following is not true?
Required new funds increase as accumulated amortization increases
Required new funds decrease as profit margins increase
As the dividend payout ratio decreases, the required new funds also decrease
As the tax rate increases, the required new funds increase
4.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
In forecasting a firm's cash needs for a future period:
a cash budget approach can deal effectively with both level and seasonal production schedules
cash budgets are less exact than the percent-of-sales method
a cash budget approach cannot deal effectively with both level and seasonal production schedules
the percent-of-sales method is a detailed approach
5.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
What is a business risk?
Risk which is related to future earnings of a company
Risks that may derive from the bad work of workers
Risks that may come from fixed costs only
Risks that may come from variable costs only
6.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
What are operating risks?
Risks that may derive from the fixed costs and variable costs that the firm incurs in order to operate
Risk which is related to future earnings of a firm
Risks from both fixed and variable finance costs that come from firm's capital structure
Risks which may come from both economic instability of the country that the firm is operating in and the changes in preferences of people
7.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
Which of the following are variable costs?
Direct labour cost, direct cost of materials, costs for electricity associated with the production
Direct labour cost, payment for the rent of warehouse, costs for electricity associated with the production
Salary for the Director of the firm, direct material cost, payment for the rent of warehouse
Direct labour cost, direct cost of materials, cost from paying for patents
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