Exam 3: Start-Up Costs and Financing

A loan for a delivery van would be repaid over

Equity financing includes funds from venture capital firms and stock sales.

A profitable business may not be able to pay all of its bills.

Expenses that are not affected by the sales volume of the business are called

Long-term liabilities are

Goodwill and patents are considered company liabilities.

The accrual basis of accounting records sales when they are made and records expenses when they are incurred.

Which accounting method records sales when they are made and records expenses when they are incurred?

Debt financing includes

Projected financial statements that are included in the business plan include the opening-day balance sheet, the projected income statements, and the projected cash flow statements.

Current liabilities include accounts payable and accrued expenses.

The current portion of long-term debt is the

The Small Corporate Offering Registration Act made it more difficult for small businesses to sell stock publicly.

Which of the following is not the same as the others?

Which of the following is not the same as the others?

Inventory consists of items purchased by the entrepreneur for resale to the customers.

Stock sales may be either

The completed-contract accounting method is most likely to be used by

It is usually possible for an entrepreneur to obtain bank financing for a start-up without investing any personal funds.

The accrual method of accounting gives a more accurate picture of the financial health of the company than does the cash basis.