Business Management-Chapters 15 & 16

Financial records are summaries of a business's financial activities and information?

• True

• False

A financial ratio can show whether the average monthly inventory might be too large or too small.

• True

• False

The records from a checking account provide adequate information to fully understand the financial condition of a small business.

• True

• False

A business with very little working capital would find it easy to borrow money.

• True

• False

Many companies deposit funds into employees' bank accounts rather than issuing actual paychecks.

• True

• False

The amount of working capital is an important indicator that a business can pay its long-term debts.

• True

• False

Each item that is sold with a point-of sale-terminal is automatically subtracted from the recorded inventory so the computer can calculate when the store needs to order merchandise.

• True

• False

Money usual flows into and out of a business at the same rate.

• True

• False

Tools and computers used in a business's operations are examples of assets.

• True

• False

The difference between revenue and total expenses shows the profit or loss of a business.

• True

• False