E-Trip Ch 9 Test Review

Cash disbursements include cash sales, collected account receivables, tax refunds, and funds from bank loans and investors.

• True

• False

Unsecured loans are made only to the bank’s most creditworthy customers.

• True

• False

Typically, only very small businesses use the cash method.

• True

• False

Changes in the economy can have a dramatic effect on the cash flow of a business.

• True

• False

If your bank statement balance is not the same as your check register balance, you should contact your bank immediately.

• True

• False

A commercial bank loan is an example of equity capital.

• True

• False

Equity-based crowdfunding is becoming an increasingly popular financing method for many entrepreneurs and small businesses.

• True

• False

Even if you do not have a solid business plan, most banks will give you an unsecured loan.

• True

• False

Banks are usually very willing to provide inventory financing.

• True

• False

Itemizing your startup costs is an important part of determining how much money you need to start your business.

• True

• False