Financial Mgt - Budgeting Lesson 1

Front

Name an activity related to finance that involves planning and controlling income and expenses.

Back

Budgeting

Front

The activity in finance that involves distributing profits to shareholders is called:

Back

Dividend distribution

Front

What is the role of forecasting in an effective financial plan?

Back

To predict future financial conditions and trends

Front

An effective financial plan explains acquiring money for growth or expansion by:

Back

Identifying potential funding sources

Front

What is an example of a business asset? A) Cash, B) Equipment, C) Buildings, D) All of the above.

Back

All of the above.

Front

Which of the following is an example of a start-up expense? A) Payroll, B) Business assets, C) Rent, D) Utility bills

Back

Business assets

Front

Which of the following is an example of an operating expense? Utility bills, Business assets, Remodeling costs, Security deposits

Back

Utility bills

Front

Which of the following is an example of an operating expense? A) Delivery charges, B) Business assets, C) Remodeling costs, D) Security deposits

Back

Delivery charges

Front

What is a Cash Budget?

Back

A plan for the actual money the business owner spends on a daily, weekly, or monthly basis.

Front

To prepare a budget, a business must be able to identify and predict the amount of each source of income and each type of expense.

Back

True