Entrepreneurship--Lesson 6-1 Slides

Match

Match the following

• Promises of payment from customers to sellers.

• Resources a company owns or controls.

• Creditors' claims on assets.

• Owner's claim on assets.

• Increases equity from sales of products and services.

Accounts Receivable

Assets

Liabilities

Equity

Revenue

• Accounts Receivable

• Assets

• Liabilities

• Equity

• Revenue

Math Response

If Company A has:

$2,300 in Cash

• $400 in Accounts Payable

• $500 in Accounts Receivable

• $1,100 in Bank Loans

What is Company A's Owners Equity?

Type answer here

Correct Answer: 1300

Deg^°

Rad

Multiple Choice

Why is it important to make a financial plan before starting a business?

• It helps you attract customers

• It helps you calculate start-up costs and prepare financial statements

• It helps you design your logo

• It helps you choose a location

Multiple Choice

Which of the following is NOT typically considered a startup cost when establishing a business?

• Equipment and supplies

• Licensing fees

• Owner’s equity

• Furniture and fixtures

Multiple Select

Which statements are true about a cash flow statement?

• It describes how much cash comes in and goes out of a business over time.

• It shows how much profit or loss was generated by the business.

• It deals with actual cash coming in and going out.

• It forecasts revenues and operating expenses.

Fill in the Blank

An income statement shows how much ___ or loss was generated by the business.

Fill in the Blank

The accounting equation is Assets = ___ + Owner’s Equity.

Multiple Choice

Why is it important to prepare financial statements before approaching a lender or investor for your business?

• To show your business is viable and financing is reasonable

• To impress potential employees

• To avoid paying taxes

• To increase your product prices

Multiple Choice

Which of the following best describes a personal financial statement?

• A balance sheet showing personal assets, liabilities, and net worth

• A list of monthly expenses

• A summary of yearly income

• A report of business profits and losses