Intro to Corporate Finance - EBA

Net Cashflow is calculated by using the following formula...

• Sales - Expenses

• Expenses - Sales

• (Sales / Expenses) - 1

• Expenses * Sales

Which of the following is NOT a type of required capital?

• start-up

• operating

• reserve

• expense

Amount of capital needed to operate a business for the first few months or years.

• Start-up costs

• Operating capital

• Expenses

• Owner's equity

An expense that remains the same regardless of business activity

• fixed expenses

• regular expense

• typical expense

• variable expense

A list of general ledger accounts that a business will use

• list of accounts

• chart of accounts

• business plan

• financial plan

An example of a fixed expense is

• car repair

• insurance

• electric bill

• water bill

an economic system in which people can choose what they buy, produce, and sell, as well as where they work

• general system

• business

• free enterprise system

• financial plan

Which is not a plan within the business plan?

• financial plan

• marketing plan

• strategic plan

• revenue plan

Consider the Model of a Business Cycle, during this stage a business is experiencing a slow down and financial success is declining. This business is in what stage?

• recovery

• peak

• contraction

• trough

Buying supplies, selling merchandise, and paying bills are all known as...

• Income

• Transactions

• Expenses

• Accounting