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 Blanks

An income statement shows how much

or loss was generated by the business.

Fill in the Blanks

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