Home > CompTIA A+ Exam > Quizzes > Financial Forecasting
Financial Forecasting
Fast practice, instant feedback. Timer auto-submits when time’s up.
Avg score: 15% • Most missed: “Net Income / Equity OR Net Margin/profitability Asset Turnover/Efficiency Levera…”
Financial Forecasting
Time left 00:00
17 Questions

1. = 1 - (B - Payout Ratio) (This is the flipside of the payout ratio)

2. Forecasting - future

3. Method of forecasting that relates everything back to sales

4. Discretionary Financing Need; the amount of additional financing the firm will need to work the assumptions and pro forma financial statements.

5. NI / Sales

6. Assets / Equity (When company is willing to borrow more and increase leverage - it has more cash to support growth)

7. RE = Old RE + Change in RE (NI - Dividends)

8. Cash Dividends / NI (Informs us how much of net income we pay out in dividends; its flipside is the plowback ratio)

9. ROE = Net Margin Asset Turnover Equity Multiplier 1) Net Margin = NI / Sales 2) Asset Turnover = Sales / Asset 3) Equity Multiplier = Assets / Equity

10. Line-item accounts that change automatically as sales increase. These include: Most current assets -Accounts payable -Accruals (e.g. accrued wages) -SOMETIMES fixed assets

11. 1) Slow sales growth (e.g. increase price - net margin; decrease assets needed) 2) Examine capacity restraints (e.g. full capacity? outsource?) 3) Lower dividend payout (ratio) 4) Higher net margin (raise price - cut costs)

12. Total Assets needed to finance the new sales level

13. Net Income / Equity OR Net Margin/profitability Asset Turnover/Efficiency Leverage/financing

14. Future RE = Old RE + Projected Sales X Net Margin X (1 - Payout Ratio)

15. Sales / Assets (As this goes up - more sales are generated per dollar of assets and the firm requires less investment to increase sales)

16. AKA Discretionary Accounts. Line-item accounts that do not automatically change as sales increase; these include: Notes Payable -Long-term liability -Common stock

17. Garbage in - garbage out. A characteristic of financial forecasting - i.e. if our assumptions are dumb - our answers will also be dumb

⚡ Recently practiced quizzes in this topic
Live quiz activity
Comptia A+ Port Numbers CompTIA A+ Windows Command Line A+ Guide To IT Technical Support Glossary CompTIA A+ Certification 802 Exam Practice CompTIA A+ 220-801 Exam A+ Guide To IT Technical Support - Network Hardware CompTIA A+ 220-901 Exam Practice Questions CompTIA A+ 220-901 Practice Questions Comptia A+ 220-902 Exam Terms A+ Guide To IT Technical Support - Hard Drives and Other Storage Devices
 
❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

🌈  Our mission is to help improve your scores in any subject and exam withonline quizzes, practice tests, study guides, & advice for students. Since 2018.
About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |
Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.