Break Even and Cash Flow Analysis















Break Even and Cash Flow Analysis Test



1. Planning to meet profit goals and analysing the effect of increased sales on net income is called?
balance sheet
sales projection
break even analysis
cash flow

2. The point at which a business moves from a loss to a profit position is called?
cash flow
break even
net profit
net loss

3. Costs that must be paid each month whether sales take place or not?
assets
variable costs
fixed costs
expenses

4. If our fixed costs are $95,000 and our variable cost percentage is 45%, what is our sales break-even point?
not enough information is given
$95,000
$42,750
less than $95,000

5. How many tuxedos does Bromley's need to rent each month at $125 if the break even point is $200,000?
1,000
1,500
1,600
2,000

6. The ability to pay debts as they come due is called?
break even
cash flow
liquidity
net worth

7. Which account listed below is the most liquid?
cash
accounts receivable
inventory
stockholders' equity

8. Which expense is not an out of pocket expense?
interest on the loan
salary expense
rent expense
depreciation

9. Making payments on the business loan affects what two accounts?
salary expense and FICA
notes payable and interest expense
rent expense
federal income tax

10. To prepare a cash flow analysis what accounting form do you need to use to get the expenses?
balance sheet
cash flow
payroll
income statement

11. Money received after the sale is made is called?
accounts payable
accounts receivable
stockholders' equity
an invoice

12. The ending cash balance for one month becomes?
the beginning cash balance for the next month
the ending cash balance for the next month
the net income
net profit

13. If salary expense is $100,000 and cost of goods sold percentage is .5107, what is the total amount of a VE contract?
$100,000
$51,070
$151,070
$110,000

14. If total revenue is $275,000 and the cost of goods sold percentage is 65%, what is the cost of goods sold?
$175,00
$17,875
$178,750
$375,000

15. If total sales are 175,000 and cost of goods sold is $95,000, what is the gross profit ?
$80,000
$5,000
$15,000
none of the above

Chapter 4 Accounting Test


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