Question 1

A business's operating ratios are computed by ________.

Accepted Answer

A)  Expense/sales 
B)  Cost of goods sold/sales 
C)  Income/sales 
D)  Expense/cost of goods sold 
E)  None of the above 
A)  Expense/sales 
B)  Cost of goods sold/sales 
C)  Income/sales 
D)  Expense/cost of goods sold 
E)  None of the above

Question 2

If cash has decreased from $10,000 to $8000 on the balance sheet, it means the company is doing poorly.

Accepted Answer

A) True 
 B)False

Question 3

Return on Sales (ROS) is also called a(n) ________.

Accepted Answer

A)  Profit margin 
B)  Operating margin 
C)  Contribution margin 
D)  Gross margin 
E)  Profit scope 
A)  Profit margin 
B)  Operating margin 
C)  Contribution margin 
D)  Gross margin 
E)  Profit scope

Question 4

EBIT is an acronym for ________.

Accepted Answer

A)  Earnings before interest and taxes 
B)  Earnings before income taxes 
C)  Earnings before information technology costs 
D)  All of the above 
E)  None of the above 
A)  Earnings before interest and taxes 
B)  Earnings before income taxes 
C)  Earnings before information technology costs 
D)  All of the above 
E)  None of the above

Question 5

Growth of ________ is a good way to measure company success.

Accepted Answer

A)  Owner's equity 
B)  Long-term debt 
C)  Cash 
D)  Liabilities 
E)  None of the above 
A)  Owner's equity 
B)  Long-term debt 
C)  Cash 
D)  Liabilities 
E)  None of the above

Question 6

Revenue is income received from sales of the company's products or services.

Accepted Answer

A) True 
 B)False

Question 7

An income statement shows whether the difference between revenues (sales) and expenses (costs) is a profit or a ________.

Accepted Answer

A)  Loss 
B)  Net profit 
C)  Breakeven 
D)  Mess 
E)  Yield 
A)  Loss 
B)  Net profit 
C)  Breakeven 
D)  Mess 
E)  Yield

Question 8

Which of the following is not something that can be invested?

Accepted Answer

A)  Expertise 
B)  Money 
C)  Energy 
D)  Time 
E)  All of the above 
A)  Expertise 
B)  Money 
C)  Energy 
D)  Time 
E)  All of the above

Question 9

A fiscal year may differ from the calendar year.

Accepted Answer

A) True 
 B)False

Question 10

An older term used for the income statement is the ________.

Accepted Answer

A)  Profit and loss statement 
B)  Cash flow analysis 
C)  Balance sheet 
D)  Liabilities report 
E)  None of the above 
A)  Profit and loss statement 
B)  Cash flow analysis 
C)  Balance sheet 
D)  Liabilities report 
E)  None of the above

A business's operating ratios are computed by ________.

If cash has decreased from $10,000 to $8000 on the balance sheet, it means the company is doing poorly.

Return on Sales (ROS) is also called a(n) ________.

EBIT is an acronym for ________.

Growth of ________ is a good way to measure company success.

Revenue is income received from sales of the company's products or services.

An income statement shows whether the difference between revenues (sales) and expenses (costs) is a profit or a ________.

Which of the following is not something that can be invested?

A fiscal year may differ from the calendar year.

An older term used for the income statement is the ________.

Entrepreneurs Recognize Opportunities

Franchising

Finding Opportunity in an Existing Business

The Business Plan: Road Map to Success

Creating Business From Opportunity

Exploring Your Market

Developing the Right Marketing Mix and Plan

Pricing and Credit Strategies

Integrated Marketing Communications

Marketing Globally

Smart Selling and Effective Customer Service

Understanding and Managing Start-Up, Fixed, and Variable Costs

Cash Flow and Taxes

Financing Strategy: Debt, Equity, or Both

Addressing Legal Issues and Managing Risk

Operating for Success

Location, Facilities, and Layout

Human Resources and Management

Leadership and Ethical Practices

Franchising, Licensing, and Harvesting: Cashing in Your Brand

Filters

Exam 13: Using Financial Statements to Guide a Business

A business's operating ratios are computed by ________.

If cash has decreased from $10,000 to $8000 on the balance sheet, it means the company is doing poorly.

Return on Sales (ROS) is also called a(n) ________.

EBIT is an acronym for ________.

Growth of ________ is a good way to measure company success.

Revenue is income received from sales of the company's products or services.

An income statement shows whether the difference between revenues (sales) and expenses (costs) is a profit or a ________.

Which of the following is not something that can be invested?

A fiscal year may differ from the calendar year.

An older term used for the income statement is the ________.

Entrepreneurs Recognize Opportunities

Franchising

Finding Opportunity in an Existing Business

The Business Plan: Road Map to Success

Creating Business From Opportunity

Exploring Your Market

Developing the Right Marketing Mix and Plan

Pricing and Credit Strategies

Integrated Marketing Communications

Marketing Globally

Smart Selling and Effective Customer Service

Understanding and Managing Start-Up, Fixed, and Variable Costs

Cash Flow and Taxes

Financing Strategy: Debt, Equity, or Both

Addressing Legal Issues and Managing Risk

Operating for Success

Location, Facilities, and Layout

Human Resources and Management

Leadership and Ethical Practices

Franchising, Licensing, and Harvesting: Cashing in Your Brand

Filters