1) The ______________________________ is based on the assumption that accounts on balance sheet will maintain given percentage relationship to sales, but the percentages are not computed for Notes payable, Common stock, or Retained earnings

Select one:

a. Double-entry Formula

b. Balance sheet identity

c. Dupont identity

d. Percent of sales method

2) While developing the pro forma Balance Sheet, you need all of the following, except _______________________

Select one:

a. Prior Balance Sheet

b. cash flow analysis

c. pro forma income statement analysis

d. cash budget analysis

3) When calculating the RNF (required new funds), the L/S stands for the ________________________________

Select one:

a. Percentage of variable liabilities to savings

b. Percentage of fixed liabilities to sales

c. Percentage of variable liabilities to savings

d. Percentage of variable liabilities to sales

4) Using the percentage of sales method, once we know how much money is needed to finance growth, we will then decide whether to finance sales growth with an increase in notes payable, or the sale of common stock,, or __________________

Select one:

a. long-term debt

b. preferred stock

c. coupon bonds

d. discount bonds

5) _______________ first allocates cost of current sales to beginning inventory, then to goods manufactured during period

Select one:

a. FIFO

b. LOFI

c. FILO

d. LIFO