Read 'Chapter 1: Forecasting and Managerial Planning' & answer the following question(s): |

1. | The ultimate objective of forecasting is to |

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2. | Financial forecasts do not include. |

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3. | A financial forecast involves prediction of |

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4. | In order for hospital managers of nonprofit institutions to make health care forecasts they must make projections of |

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5. | Sales forecasts are especially crucial aspects of many financial activities. T F |

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6. | Which of the following is a qualitative approach to forecasting? |

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Read 'Chapter 2: Forecasting, Planning, and Business Valuation' & answer the following question(s): |

7. | In developing a comprehensive budget for a manufacturing company, which one of the following items should be done first? |

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8. | Which of the following represents the best reason for “what-if” (sensitivity) analysis when preparing master budgets? |

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9. | Forecasting tries to |

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10. | XYZ Company has the following year-end expected profits in each of the next three years: $30,000, $90,000, and $120,000. Then it shut downs. Assuming a 10 percent interest rate, the value of the firm is |

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11. | A budget is a set of dependent and independent variables. T F |

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12. | _____________________ is not a factor in business valuation |

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Read 'Chapter 3: Moving Averages and Smoothing Methods' & answer the following question(s): |

13. | Which of the following is not true about naïve forecasting models |

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14. | Which method is used to develop a simple model that assumes that the most recent period is the best predictor of the future? |

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15. | Which method uses the mean (or average) for a specified set of values to forecast the next period? |

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16. | Which method continually revises a forecast in the light of more recent experience? |

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Read 'Chapter 4: Regression Analysis' & answer the following question(s): |

17. | The following computer printout was generated using the least squares method for use in estimating sales: Slope 74 Intercept 16600 Correlation coefficient .95 Independent variable Advertising The sales forecasting equation would be |

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18. | The following computer printout was generated using the least squares method for use in estimating sales: Slope 74 Intercept 16600 Correlation coefficient .95 Independent variable Advertising An estimate of sales if an advertising expense is $100 would be |

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19. | The following computer printout was generated using the least squares method for use in estimating sales: Slope 74 Intercept 16600 Correlation coefficient .95 Independent variable Advertising What percentage change in sales can be explained by changes in advertising? |

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20. | Given Y = 10.5836 + 0.5632 X where X= advertising, assume that the advertising of $10 is to be expended for the next year, the projected sales for the next year would be computed as |

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21. | If the independent variable is production volume and the dependent variable is cost, a coefficient of determination of .89 indicates |

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22. | Table t value, based on a degree of freedom and level of significance, is not used |

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Read 'Chapter 5: Multiple Regression' & answer the following question(s): |

23. | Multiple regression analysis is used to |

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24. | When it is difficult to assume that a linear relationship exists between lagged advertising budgets and sales because of the diminishing returns effect of accumulated advertising, a more appropriate relationship is considered to be |

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25. | Dummy variables that can improve accuracy of regression models do not include |

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26. | When there is a high correlation between independent variables where these variables interfere with each other, then |

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Read 'Chapter 6: Time Analysis and Classical Decomposition' & answer the following question(s): |

27. | In a time series analysis the most commonly recognized components do not include |

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28. | The basic approach involved when using the classical decomposition method with quarterly sales data includes the following step(s) except |

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29. | Trend analysis (linear and curvilinear) can effectively be used |

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Read 'Chapter 7: Forecasting with No Data and Long Range Forecasting' & answer the following question(s): |

30. | Which of the following is not categorized in the stages in the life cycle of a typical new product? |

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31. | Choosing the right growth model gives the best starting point when forecasting with no data. You should not consider |

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Read 'Chapter 8: Indirect Methods' & answer the following question(s): |

32. | The Markov Model is based on the assumption that |

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33. | Input-output analysis is an indirect method concerned with |

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34. | Market survey techniques are important forecasting tools, especially for |

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35. | Which of the following variables is not a driving force of sales? |

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36. | The Markov model is developed so as to predict market share by considering consumer brand loyalty and switching behaviors. T F |

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37. | Market surveys involve the use of interviews or mailed questionnaires asking about future plans. T F |

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Read 'Chapter 9: Evaluation of Forecasts' & answer the following question(s): |

38. | The Theil U statistic is based upon a comparison of the predicted change with the |

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39. | Forecasting control can be accomplished by comparing forecasting errors to predetermined values or limits. Errors that fall within the limits would be acceptable while errors outside of the limits would signal |

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Read 'Chapter 10: What is the right forecasting tool and software for you?' & answer the following question(s): |

40. | Forecasting methodology may be ranked by |

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Read 'Chapter 11: Sales and Revenue Forecasting' & answer the following question(s): |

41. | ______________ is not a qualitative and subjective method of predicting economic activity or some particular phase of it. |

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42. | The combination methods of sales forecasting is of limited value to |

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Read 'Chapter 12: Forecasting the Economy' & answer the following question(s): |

43. | Economic forecasting is typically concerned with predicting future values, with the exception of |

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44. | The Federal Reserve Bulletin contains all the following except. |

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Read 'Chapter 13: Financial and Earnings Forecasting' & answer the following question(s): |

45. | The basic steps in projecting financial needs include all except |

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46. | The types of functions that CPA's perform with respect to prospective financial statements that will be relied upon by third parties do not include |

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47. | ______________________ is a prospective financial statement for general use upon which an accountant may appropriately report. |

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48. | A financial forecast |

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49. | Given one or more hypothetical assumptions, a responsible party may prepare, to the best of its knowledge and belief, an entity's expected financial position, results of operations, and cash flows. Such prospective financial statements are known as |

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50. | Prospective financial information that omits either sales or gross revenues is considered to be a |

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51. | EPS projections are frequently made by independent security analysts such as the following except |

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52. | The Sarbanes-Oxley Act of 2002 and the SEC now require companies that provide pro forma financial information to make sure that the information is not misleading. In addition, reconciliation between pro forma and ____________ information is required. |

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Read 'Chapter 14: Cashflow Forecasting' & answer the following question(s): |

53. | A forecast of cash collections and potential write offs of accounts receivable is essential in cash budgeting. T F |

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54. | A more scientific approach to estimating cash collection percentages (or payment portions) is to use |

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55. | The Andrews Company sells a product for $10. Budgeted sales for the first quarter of 20A are as follows Budgeted Sales January $160,000 February 100,000 March 180,000 The company collects 70% in the month of sale and 25% in the following month. Five percent of all sales are uncollectible and written off. Budgeted cash receipts for March are |

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Read 'Chapter 15: Analysis of Cost Behavior and Cost Prediction' & answer the following question(s): |

56. | An understanding of cost behavior is helpful for the following activities except for |

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57. | All costs behave in the same way. T F |

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58. | Examples of fixed costs do not |

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59. | One popular method of estimating the cost function (cost-volume formula or flexible budget formula) is |

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Read 'Chapter 16: Bankruptcy Predictions' & answer the following question(s): |

60. | _____________________ is not used by the bankruptcy prediction model for |

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61. | The “degree” to which a firm has current debt in excess of assets is the most common factor in bankruptcy. T F |

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62. | The Degree of Relative Liquidity (DRL) is an alternative method of measuring the liquidity of a small business firm. T F |

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63. | The Lambda Index is a ratio that focuses on |

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Read 'Chapter 17: Forecasting Foreign Exchange Rates' & answer the following question(s): |

64. | The primary reasons why it is necessary to forecast the foreign exchange rates do not include |

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65. | Exchange rates today are floating and can easily vary as much as 5% within a week. . T F |

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66. | The interest rate parity theory says the interest rate differential must equal the difference between the spot and forward rate. If the US interest rate is 10%, an identical investment yields 5%, the exchange rate is .7097 dollar per frank (Swiss). A $100.000 invested in the US can earn 100,000 x 10/2 = $105,000 in six months. The same investment today can purchase 140.905 francs (100,000 / .7270) and earn 144,428 francs. If the investor sold the francs at the exchange rate of .07270 the amount would be equal to |

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67. | Four major ways of forecasting foreign exchange rates include all except |

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Read 'Chapter 18: Interest Rate Forecasting' & answer the following question(s): |

68. | _______________________ is not an independent variable used in interest rate forecasting? |

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69. | Today’s supply and demand for credit determines today’s short-term interest rate. T F |

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70. | Judg¬ments and expert opinions can help determine the future di¬rection of interest rates. A quantitative evaluation is invariably more important than expert judgments, however. T F |

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Read 'Chapter 19: Technological Forecasting' & answer the following question(s): |

71. | Technical forecasting is a discipline concerned with identifying struggling industries with declining products and services. T F |

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72. | Intuition appears to play a very important role in exploratory technological forecasting. T F |

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73. | The present state-of-the-art technology in technology forecasting can be characterized as |

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Read 'Chapter 20: Forecasting the 21st Century' & answer the following question(s): |

74. | The passage of time should not witness |

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75. | Which one of the following is not related to the future for forecasting? |

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