Business Management Ch 17

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

• A. contracts

• B. financial audit

• C. forecast

• D. financial plan

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

• A. identify the assets that are needed

• B. describe the amount of money needed

• C. describe how a business will document its finances

• D. identify the salaries of future employees

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

• A. insurance

• B. equipment

• C. cash

• D. buildings

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

• A. small business loan

• B. start-up capital

• C. capital

• D. operating expenses

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

• A. remodeling costs

• B. advertising

• C. insurance

• D. payroll

Which of the following is NOT considered an operating expense?

• A. payroll

• B. rent

• C. security deposits

• D. bank fees

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

• A. financial forecast

• B. financial plan

• C. financial outlook

• D. budget

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

• A. financial plan

• B. financial forecast

• C. financial outlook

• D. budget

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

• A. financial planning

• B. financial forecasting

• C. budgeting

• D. accounting

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

• A. economics

• B. mathematics

• C. English

• D. accounting