Unit 5 Marketing Applications Exam CH: 34,35,36,37

What document summarizes a loan applicant's assets and liabilities?

• personal financial statement

• credit report

• income statement

• business balance sheet

What monthly plan helps a business owner track when cash is expected to come in and when it would be paid out?

• balance sheet

• profit and loss statement

• cash flow statement

• projected income statement

Banks look at the _________________ of a potential borrower because they can be sold if necessary to pay off a loan.

• assets

• credit

• variable

• liquidity

• equity

Besides considering a borrower's assets, or collateral, and prospects for a successful business, lenders also examine a borrower's _______________ history.

• assets

• credit

• variable

• liquidity

• equity

____________________ expenses include a business's operating expenses, such as advertising costs and utility expenses.

• assets

• credit

• variable

• liquidity

• equity

Lenders use different types of ____________________ ratios to determine a business's ability to meet its current debts.

• assets

• credit

• variable

• liquidity

• equity

An asset that a business uses over a period of years, such as a desk or a building is referred to as a(n) ____________________ asset.

• fixed

• $74,529

• $35,045

• $739.50

the difference between a business’s total sales and customers’ returns or allowances

• net sales

• continuing costs

• start-up expenses

• one-time costs

• personal net worth

operating expenses paid throughout the life of a business

• net sales

• continuing costs

• start-up expenses

• one-time costs

• personal net worth

projections of how much money a new business owner will need for the first year of a business’s operation

• net sales

• continuing costs

• start-up expenses

• one-time costs

• personal net worth