POB Ch 17 Review

The purpose of a financial plan is to

• project future income.
• see if there is enough money to start the business.
• describe the assets that need to be purchased to start a business.
• all of the above

The main reason start-up capital can be hard to obtain is because

• there is no track record to prove the venture will be successful.
• money is scarce.
• assets are needed.
• of high interest rates.

Operating expenses include

• remodeling costs.
• security deposits.
• utility bills.
• legal permits.

Financial records can be managed by

• the owner.
• a hired professional.
• a qualified employee.
• all of the above

Unplanned growth

• yields unplanned income.
• can be rewarding.
• can be chaotic.
• builds a business faster.

A plan for the amount the business owner spends on a daily, weekly, or monthly basis is a(n)

• start-up budget.
• current budget.
• cash budget.
• operating budget.

Accounting includes all of the following except

• creating financial transactions.
• collecting financial transactions.
• recording financial transactions.
• reporting financial transactions.

Accounting is often called the language of

• communication.
• business.
• finance.
• math.

GAAP is an acronym that stands for

• government accepted accounting practices.
• government accepted accounting principles.
• generally accepted accounting principles.
• generally accepted accounting practices.

Fixed assets are assets that will be held for

• more than one year.
• the life of the business.
• more than one month.
• one business cycle.