Chapter 17 - Quiz

Which term refers to a set of documents outlining the financial facts about a new business?

• contracts

• financial audit

• forecast

• financial plan

Which of the following is NOT something an effective financial plan does?

• identify the assets that are needed

• describe the amount of money needed

• describe how a business will document its finances

• identify the salaries of future employees

Which of the following is NOT an example of an asset?

• insurance

• equipment

• cash

• buildings

Which term refers to the money used to pay for the various assets of a new business?

• small business loan

• start-up capital

• capital

• operating expenses

Which of the following is NOT considered a start-up expense?

• remodeling costs

• advertising

• insurance

• payroll

Which of the following is NOT considered an operating expense?

• payroll

• rent

• security deposits

• bank fees

Which of following is an estimate of a business's financial outlook for each of the next few years?

• financial forecast

• financial plan

• financial outlook

• budget

Which of following refers to a plan specifying how money will be used or spent during a particular period?

• financial plan

• financial forecast

• financial outlook

• budget

Which term refers to systematic process of recording and reporting the financial position of a person or organization?

• financial planning

• financial forecasting

• budgeting

• accounting

Which term is also referred to as the "language of business"?

• economics

• mathematics

• English

• accounting