Enp11 Questions and Correct Answers
operating budget. Ans: — A budget that is a statement of
estimated income and expenses over a specified period of time is
referred to as an
it is a way to anticipate conditions. Ans: — From an entrepreneur's
standpoint, preparing financial statements is useful because
the dependent variable Ans: — In the simple linear regression
analysis equation, Y = a + bx, Y represents
ratio analysis. Ans: — Comparing financial numbers in order to
make decisions is referred to as:
preparation of the sales forecast Ans: — The first step in
constructing an operating budget is
more favorable in its short-term effects on earnings. Ans: — Many
companies continue to use the payback method. It is
cash Ans: — Which is not included within balance sheet ratios?
does not change in response to changes in activity for a given
period of time. Ans: — A fixed cost
recognizing future cash flows beyond the payback period. Ans: —
Net present value method is a capital budgeting technique that
helps to minimize some of the shortcomings of the payback
method by
a dollar today is worth more than a dollar in the future. Ans: —
The concept of the net present value method works on the premise
that
it is very simple to use in comparison with other methods. Ans: —
Despite the drawbacks of the payback method, the entrepreneur
should continue to use it because
cash Ans: — Which of the following balance sheet ratios measure
solvency?
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