Introduction to Business

Chapter 17: Managing Business Finances

Chapter Practice Review Quizzes

1
Which term refers to a set of documents outlining the financial facts about a new business?
A)contracts
B)financial audit
C)forecast
D)financial plan
2
Which of the following is NOT something an effective financial plan does?
A)identify the assets that are needed
B)describe the amount of money needed
C)describe how a business will document its finances
D)identify the salaries of future employees
3
Which of the following is NOT an example of an asset?
A)insurance
B)equipment
C)cash
D)buildings
4
Which term refers to the money used to pay for the various assets of a new business?
A)small business loan
B)start-up capital
C)capital
D)operating expenses
5
Which of the following is NOT considered a start-up expense?
A)remodeling costs
B)advertising
C)insurance
D)payroll
6
Which of the following is NOT considered an operating expense?
A)payroll
B)rent
C)security deposits
D)bank fees
7
Which of the following is an estimate of a business's financial outlook for each of the next few years?
A)financial forecast
B)financial plan
C)financial outlook
D)budget
8
Which of the following refers to a plan specifying how money will be used or spent during a particular period?
A)financial plan
B)financial forecast
C)financial outlook
D)budget
9
Which term refers to a systematic process of recording and reporting the financial position of a person or organization?
A)financial planning
B)financial forecasting
C)budgeting
D)accounting
10
Which term is also referred to as the "language of business"?
A)economics
B)mathematics
C)English
D)accounting
11
Which of the following is summarized information about the financial status of a business?
A)financial forecast
B)annual budget
C)financial report
D)financial plan
12
Which of the following is NOT considered a current asset?
A)payroll
B)cash
C)supplies
D)merchandise
13
Which term refers to the total amount of money owed to a business?
A)financial outlook
B)accounts receivable
C)outstanding debt
D)billing cycle
14
Which of the following is a representation of the accounting equation?
A)assets = liabilities + owner's equity
B)liability = owner's assets + equity
C)assets + liabilities = owner's equity
D)owner's equity - liability = assets
15
Which of the following is a report of the balances in all assets, liability, and owner's equity accounts at the end of an accounting period?
A)accounts receivable
B)balance sheet
C)statement of cash flow
D)accounts payable
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