Question 1

Which of the following is included on a balance sheet?

Accepted Answer

A)  gross profit 
B)  cash disbursements 
C)  depreciation 
D)  cost of goods sold 
A)  gross profit 
B)  cash disbursements 
C)  depreciation 
D)  cost of goods sold

Question 2

Liabilities equal assets plus equity.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following best defines working capital?

Accepted Answer

A)  current liabilities divided by current assets 
B)  the required cash to run your business 
C)  assets minus liabilities 
D)  current assets minus current liabilities 
A)  current liabilities divided by current assets 
B)  the required cash to run your business 
C)  assets minus liabilities 
D)  current assets minus current liabilities

Question 4

A statement of what the business owes and what the business owns at a point in time is called a ____________ _______________.

Accepted Answer

The answer of A statement of what the business owes...

Question 5

Working capital is defined as current liabilities minus current assets.

Accepted Answer

A) True 
 B)False

Question 6

Equity is the owner's cash investment.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following costs depends on the level of sales?

Accepted Answer

A)  operating 
B)  overhead 
C)  floating 
D)  variable 
A)  operating 
B)  overhead 
C)  floating 
D)  variable

Question 8

Why should you develop pro forma balance sheets, income statements, and cash flow projections?

Accepted Answer

Pro forma balance sheets, income stateme

Question 9

A company has fixed costs of $40, variable costs of $20, and current liabilities of $15. What is the total cost for this company?

Accepted Answer

A)  $35 
B)  $55 
C)  $60 
D)  $75 
A)  $35 
B)  $55 
C)  $60 
D)  $75

Question 10

What is the inventory turnover if cost of sales was $90,000, beginning inventory was $50,000, and end of year inventory was $42,055?

Accepted Answer

A)  1 
B)  2 
C)  2.5 
D)  3 
A)  1 
B)  2 
C)  2.5 
D)  3

Question 11

In which area should seasonality be a major consideration when preparing a report?

Accepted Answer

A)  projected cash flow 
B)  gross profit margins 
C)  cost of goods sold 
D)  solvency ratios 
A)  projected cash flow 
B)  gross profit margins 
C)  cost of goods sold 
D)  solvency ratios

Question 12

Some service businesses receive cash deposits well in advance of when a service is provided. Which of the following situations would these businesses tend to have?

Accepted Answer

A)  a better equity position 
B)  fewer cash flow problems 
C)  lower working capital 
D)  increased working capital 
A)  a better equity position 
B)  fewer cash flow problems 
C)  lower working capital 
D)  increased working capital

Question 13

The desire to be financially independent or to own a half million dollar house are examples of financial objectives.

Accepted Answer

A) True 
 B)False

Question 14

To find out how much money you will need for a new business, you begin by completing an application-of-funds table.

Accepted Answer

A) True 
 B)False

Question 15

When forecasting sales, you should consider high, low, and medium sales projections.

Accepted Answer

A) True 
 B)False

Question 16

What is determined in a break-even analysis?

Accepted Answer

A)  your debt-to-equity ratio 
B)  your required equity investment 
C)  the point at which your sales revenue equals total expenses 
D)  your solvency ratio 
A)  your debt-to-equity ratio 
B)  your required equity investment 
C)  the point at which your sales revenue equals total expenses 
D)  your solvency ratio

Question 17

A financial statement that helps you control the money that comes into your business and the money that is spent is known as a projected (pro forma) ______________.

Accepted Answer

The answer of A financial statement that helps you control...

Which of the following is included on a balance sheet?

Liabilities equal assets plus equity.

Which of the following best defines working capital?

A statement of what the business owes and what the business owns at a point in time is called a ___.

Working capital is defined as current liabilities minus current assets.

Equity is the owner's cash investment.

Which of the following costs depends on the level of sales?

Why should you develop pro forma balance sheets, income statements, and cash flow projections?

A company has fixed costs of $40, variable costs of $20, and current liabilities of $15. What is the total cost for this company?

What is the inventory turnover if cost of sales was $90,000, beginning inventory was $50,000, and end of year inventory was $42,055?

In which area should seasonality be a major consideration when preparing a report?

Some service businesses receive cash deposits well in advance of when a service is provided. Which of the following situations would these businesses tend to have?

The desire to be financially independent or to own a half million dollar house are examples of financial objectives.

To find out how much money you will need for a new business, you begin by completing an application-of-funds table.

When forecasting sales, you should consider high, low, and medium sales projections.

What is determined in a break-even analysis?

A financial statement that helps you control the money that comes into your business and the money that is spent is known as a projected (pro forma) ______________.

Your Great Adventure: Exploring Your Options

Spotting Trends and Opportunities

Positioning Yourself As an Entrepreneur

Profiling Your Target Customer

Learning From the Competition

Marketing: Pricing and Promoting

Marketing: Distribution and Location

Legal Concerns

Risk Management Issues

Financing Your Business

Building and Managing a Winning Team

Buying a Business

Buying a Franchise or Franchising

Pulling the Plan Together

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Exam 10: The Power of Numbers

Which of the following is included on a balance sheet?

Liabilities equal assets plus equity.

Which of the following best defines working capital?

A statement of what the business owes and what the business owns at a point in time is called a ____________ _______________.

Working capital is defined as current liabilities minus current assets.

Equity is the owner's cash investment.

Which of the following costs depends on the level of sales?

Why should you develop pro forma balance sheets, income statements, and cash flow projections?

A company has fixed costs of $40, variable costs of $20, and current liabilities of $15. What is the total cost for this company?

What is the inventory turnover if cost of sales was $90,000, beginning inventory was $50,000, and end of year inventory was $42,055?

In which area should seasonality be a major consideration when preparing a report?

Some service businesses receive cash deposits well in advance of when a service is provided. Which of the following situations would these businesses tend to have?

The desire to be financially independent or to own a half million dollar house are examples of financial objectives.

To find out how much money you will need for a new business, you begin by completing an application-of-funds table.

When forecasting sales, you should consider high, low, and medium sales projections.

What is determined in a break-even analysis?

A financial statement that helps you control the money that comes into your business and the money that is spent is known as a projected (pro forma) ______________.

Your Great Adventure: Exploring Your Options

Spotting Trends and Opportunities

Positioning Yourself As an Entrepreneur

Profiling Your Target Customer

Learning From the Competition

Marketing: Pricing and Promoting

Marketing: Distribution and Location

Legal Concerns

Risk Management Issues

Financing Your Business

Building and Managing a Winning Team

Buying a Business

Buying a Franchise or Franchising

Pulling the Plan Together

Filters

A statement of what the business owes and what the business owns at a point in time is called a ___.