Exam 10: The Power of Numbers

Your income statement shows that, as of this month, your business is profitable. However, you are unable pay all of your bills because of a lack of cash. Is your income statement wrong? What might be the problem?

(Essay)

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Question 41

How many ways are there to calculate the break-even?

(Multiple Choice)

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Question 42

Principal payments on a bank loan are not recorded as an operating expense in the income statement.

(True/False)

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Question 43

Which of the following would be used on an income statement?

(Multiple Choice)

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Question 44

According to the text, your balance sheet is the most important financial statement for a small business financial plan.

(True/False)

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Question 45

Which of the following processes is facilitated by a yearly pro forma income statement?

(Multiple Choice)

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Question 46

Forecasting sales, collection timeliness, and seasonality are major issues in preparing some business documents. Which of the following requires you to take these items into consideration?

(Multiple Choice)

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Question 47

What is the term for the money owed to the business by its customers who have purchased goods and services on credit, as shown on a balance sheet?

(Multiple Choice)

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Question 48

Which of the following records includes the cost of goods sold?

(Multiple Choice)

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Question 49

Why is it important to understand the concept of inventory turnover?

(Essay)

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Question 50

A balance sheet is an indicator of the financial health of your business over a period of time.

(True/False)

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Question 51

Which of the following is recommended by the author when building a risk management strategy?

(Multiple Choice)

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Question 52

Your break-even ratio is calculated by dividing your total sales by your fixed costs.

(True/False)

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Question 53

Which of the following do an ice cream parlour, a ski shop, and a snow blower repair business have in common?

(Multiple Choice)

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Question 54

On a balance sheet, current assets are recorded in order of liquidity.

(True/False)

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Question 55

A company's balance sheet shows that its current assets equal $100, current liabilities equal $60, and cash on hand equals $25. What is the working capital for this company?

(Multiple Choice)

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Question 56

Solvency ratios measure the ability of a company to meet its long-term obligations.

(True/False)

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Question 57

Liabilities are what the business owes to parties other than the owner.

(True/False)

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Question 58

What type of expenses are equipment, inventory, and carpeting?

(Multiple Choice)

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Question 59

On an income statement, all revenue is recorded, even though you may not yet have received the actual cash.

(True/False)

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Question 60

Showing 41 - 60 of 77

Your income statement shows that, as of this month, your business is profitable. However, you are unable pay all of your bills because of a lack of cash. Is your income statement wrong? What might be the problem?

How many ways are there to calculate the break-even?

Principal payments on a bank loan are not recorded as an operating expense in the income statement.

Which of the following would be used on an income statement?

According to the text, your balance sheet is the most important financial statement for a small business financial plan.

Which of the following processes is facilitated by a yearly pro forma income statement?

Forecasting sales, collection timeliness, and seasonality are major issues in preparing some business documents. Which of the following requires you to take these items into consideration?

What is the term for the money owed to the business by its customers who have purchased goods and services on credit, as shown on a balance sheet?

Which of the following records includes the cost of goods sold?

Why is it important to understand the concept of inventory turnover?

A balance sheet is an indicator of the financial health of your business over a period of time.

Which of the following is recommended by the author when building a risk management strategy?

Your break-even ratio is calculated by dividing your total sales by your fixed costs.

Which of the following do an ice cream parlour, a ski shop, and a snow blower repair business have in common?

On a balance sheet, current assets are recorded in order of liquidity.

A company's balance sheet shows that its current assets equal $100, current liabilities equal $60, and cash on hand equals $25. What is the working capital for this company?

Solvency ratios measure the ability of a company to meet its long-term obligations.

Liabilities are what the business owes to parties other than the owner.

What type of expenses are equipment, inventory, and carpeting?

On an income statement, all revenue is recorded, even though you may not yet have received the actual cash.

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