Multiple choice
Thehonest1) The key initial element in developing pro forma statements is
A.-an income statement.
B.-a sales forecast.
C.-a cash budget.
D.-a collections schedule.
2) A firm has beginning inventory of 300 units at a cost of $11 each. Production during the period was 650 units at $12 each. If sales were 700 units, what is the cost of goods sold (assume FIFO)?
A.-$8,000
B.-$7,700
C.-$9,000
D.-$8,100
3) The difference between total receipts and total payments is referred to as
A.-beginning cash flow.
B.-net cash flow.
C.-cumulative cash flow.
D.-cash balance.
4) The concept of operating leverage involves the use of __________ to magnify returns at high levels of operation.
A.-variable costs
B.-marginal costs
C.-fixed costs
D.-semi-variable costs
- 10 years ago
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