Question

1. Your​ company’s sales revenues are denoted S and industry sales revenues are IS. Your​ company’s volume of sales is denoted Q and the industry volume of sales is IQ. You​ company’s average price is P and the industry average price is IP. Which of the following is a correct expression for your​ company’s market​ share?

I.​ S/IS

II.​ Q/IQ

III.​ P*Q/IP*IQ

A.I only B.II only C.III only D.I and II only E.​I, II and III

2. True or False. In financial statements​ forecasting, short-term​ debt, long-term debt and​ owner’s equity are forecast as a percentage of sales.

3. True or False. In financial statements​ forecasting, all of the values in the financial statement are forecast as a percentage of forecasted sales.

4. True or False. In financial statements​ forecasting, the plug variable is forecast as a percentage of sales.

5. Last year net fixed assets were $90. This year net fixed assets are $81. Which of the following is​ correct?

A. The company sold fixed assets worth $9

B.Depreciation this year is $9

C.This​ year, CAPEX​ = Depreciation​ =​$9

Answer 1

Answer 1)

Company’s market share = Market capitalization of company/ Entire market capitalization which is denoted by P*Q/IP*IQ

Therefore correct answer is option : C.III only

Answer 2) Statement is False : short-term​ debt, long-term debt and​ owner’s equity do not vary with sales these decision of capital restructuring are taken by the management.

Answer 3) Statement is false : Lots of component are based on sales and vary in proportion of sales but not the all.

Answer 4) statement is false : In financial statements​ forecasting, the plug variable is forecast other than the sales

Answer 5) correct answer is : B .Depreciation this year is $9