Reference no: EM133392586

Questions

1. What information goes in the revenue section of your financial projections?

All of the money you expect to earn from selling your various products or services to your customers during the projected period of time
Your estimated operating income before interest and taxes and your final net income
All of the income you earned during the past three years
Your estimated cost of goods sold and other operating expenses you may incur

2. What information goes in the expenses section of your financial projections?

Your estimated cost of goods sold and other operating expenses you may incur
Your estimated cost of goods sold and your total revenue for various products
Your estimated operating income before interest and taxes and your final net income
Your estimated operating expenses and your earnings before interest and taxes

3. What information goes in the profit/loss section of your financial projections?

Your estimated operating income before interest and taxes and your final net income
Your estimated cost of goods sold and your total revenue for various products
All of the revenue you expect to receive from selling your various products or services to your customers during the projected period of time
Your estimated cost of goods sold and other operating expenses you may incur

4. What is the difference between financial projections and income statements?

Financial projections are informed forecasts of the future; income statements are the historical data for your business
Financial projections and income statements are the same thing
Income statements are informed forecasts of the future; financial projections are the historical data for your business
Income statements are created by accountants; financial projections are created by bankers and potential investors

5. What is the positive result of creating a good financial statement?

Your projections will be 100 percent accurate nearly every time
You projections will be fairly accurate but you will still need to make course corrections along the way
Your projections will be good enough, so you can rely on them without making adjustments
None of the above answers are correct

6. What is the best way to increase your net profit margin in a business?

You can lower your cost of goods sold by purchasing larger quantities
You can more efficiently manage all of your operating expenses
You can raise your prices if it doesn't impact your overall sales
All of the above will help improve net profit margin