Chapter 9, Lesson 9.2

A cash flow statement describes a business’s revenue and expenses over a period of time.

• False
• True

A best-case-scenario cash flow statement should project the lowest revenues and highest expenses that your business is likely to have.

• False
• True

An income statement shows revenues you have received and expenses you have paid.

• False
• True

The cost of the inventory a business sells during a particular period is called cost of goods sold.

• False
• True

Pro forma income statements help lenders see the long-term growth of your business.

• False
• True

Loans and accounts payable are examples of liabilities.

• False
• True

Inventory is a type of fixed asset because it will be used up in normal business operations.

• False
• True

A utility bill is a type of current liability known as an account payable.

• False
• True

A business that has more assets than liabilities has negative net worth.

• False
• True

Illiquid assets are easily converted into cash.

• False
• True