FMS Exam 1 Questions with Verified Correct Answers

FMS Exam 1 Questions with Verified Correct
Answers
Cash

Which of the following is not a line item on a P&L?



- Gross Profit

- Net Income

- Operating Expenses

- Cash

False

It is not possible for a business to be profitable and short of cash.



True or False

False

Working Capital is the same as cash flow.



True or False

33%

Assuming you operated at 67% Variable Cost, what is your CMR for that time frame?

Balance Sheet

A financial snapshot taken at a specific point in time of all the assets owned by the company,

and all the claims against those assets describes which financial statement?

, False

Profit and Loss Statements tell you how much you owe and how much you own. It is also

called a Cash Flow Statement.



True or False

Total weekly fixed costs / CMR

What is the formula for calculating break-even?

Depreciation

Which of the following is a non cash expense?



- Depreciation

- Credit card fees

- Store Insurance

- Interest

P&L, Balance Sheet, Cash Flow

What are the 3 main financial statements?

Liabilities

Which of the following is a category or element of the balance sheet?



- Expenses

- Losses

- Liabilities

- Gains