BFIN Study Guide - Questions with Correct
Verified Answers
inancial plan
Helps you see the big picture
and set long and short-term
business goals;
financial plan
lt's easier to make financial
decisions and stay on track to
meet your goals
Calculate set-up costs
Comparing your set-up costs or
your operating costs to your
start-up equity investment;
Calculate set-up costs
set-up costs or start up for
another operating period will
include:
Accounting fees
Registrations and licenses/or renewal
,Equipment and fit out
Initial working capital
Profit and loss forecast
Compare potential sales revenue to cost of goods sold and fixed costs of doing business;
Profit and loss forecast
A forecast fo sales and expenses, usually for the next or another 12 months of operations. To
produce it:
Profit and loss forecast
Compare potential sales revenue to cost of goods sold and fixed costs of doing business;
Profit and loss forecast
Calculate likely margins and put your pricing model to the test.
Cash-flow forecast
The resulting cash-flow
gap could leave you vulnerable if you're not prepared
Cash-flow forecast
Customers may be slow to pay;
Cash-flow forecast
A vital component of any
financial plan;
,Cash-flow forecast
New businesses or another
operating period often need
cash t build the capacity
necessary to service customers;
Cash-flow forecast
The resulting cash-flow
gap could leave you vulnerable if you're not prepared
Balance sheet forecast
The results of your profit and
loss forecast
Balance sheet forecast
A snapshot of the business after 12 months of operations. You should base it on:
Balance sheet forecast
The purchases you anticipated in your set-up costs
Break-even analysis
Once you've forecast your fixed costs, you can calculate how much revenue you need to break
even. If you've decided on your pricing, it's easy to calculate revenue based on sales.
Break-even analysis
, Commonly used approaches to predict what those sales will be include: for costumer service and
for other business.
Break-even analysis
Document our assumptions
and the reasons behind them,
then test and update them in
line with your current knowledge and business performance
Break-even analysis
Prepare several forecasts, based on best-case, worst-case and average scenarios
Service business
set a
benchmark based on the average
number of hours worked per week
Base figures on 60-70 per cent
utilization, rather than assuming all your time will bespent on chargeable activities
Other businesses
scope the size of your market, thenuse a conservative estimate of your likely market share to
estimate potential sales.
Budget
spending plan
Verified Answers
inancial plan
Helps you see the big picture
and set long and short-term
business goals;
financial plan
lt's easier to make financial
decisions and stay on track to
meet your goals
Calculate set-up costs
Comparing your set-up costs or
your operating costs to your
start-up equity investment;
Calculate set-up costs
set-up costs or start up for
another operating period will
include:
Accounting fees
Registrations and licenses/or renewal
,Equipment and fit out
Initial working capital
Profit and loss forecast
Compare potential sales revenue to cost of goods sold and fixed costs of doing business;
Profit and loss forecast
A forecast fo sales and expenses, usually for the next or another 12 months of operations. To
produce it:
Profit and loss forecast
Compare potential sales revenue to cost of goods sold and fixed costs of doing business;
Profit and loss forecast
Calculate likely margins and put your pricing model to the test.
Cash-flow forecast
The resulting cash-flow
gap could leave you vulnerable if you're not prepared
Cash-flow forecast
Customers may be slow to pay;
Cash-flow forecast
A vital component of any
financial plan;
,Cash-flow forecast
New businesses or another
operating period often need
cash t build the capacity
necessary to service customers;
Cash-flow forecast
The resulting cash-flow
gap could leave you vulnerable if you're not prepared
Balance sheet forecast
The results of your profit and
loss forecast
Balance sheet forecast
A snapshot of the business after 12 months of operations. You should base it on:
Balance sheet forecast
The purchases you anticipated in your set-up costs
Break-even analysis
Once you've forecast your fixed costs, you can calculate how much revenue you need to break
even. If you've decided on your pricing, it's easy to calculate revenue based on sales.
Break-even analysis
, Commonly used approaches to predict what those sales will be include: for costumer service and
for other business.
Break-even analysis
Document our assumptions
and the reasons behind them,
then test and update them in
line with your current knowledge and business performance
Break-even analysis
Prepare several forecasts, based on best-case, worst-case and average scenarios
Service business
set a
benchmark based on the average
number of hours worked per week
Base figures on 60-70 per cent
utilization, rather than assuming all your time will bespent on chargeable activities
Other businesses
scope the size of your market, thenuse a conservative estimate of your likely market share to
estimate potential sales.
Budget
spending plan
