Store Lesson 6 Financial

Which of the following is typically achieved through the routine production of financial statements that include?

• personal financial statement

• balance sheet

• income statement

• cash flow statement

• All of the above

Financial analysis refers to the activates a business conducts to monitor its finances.

• True

• False

What is the foundation of a business?

• Expenses

• Finances

• Purchases

• Supplies

What does a Personal Financial Statement document?

• Success

• Personal Balance

• Assets only

• Net Worth

What does liabilities refer to?

• debts paid

• debts owed

• risk of debt

• assets

The balance sheet does not summarize the net worth of a business itself at any given time.

• True

• False

What is an asset?

• cash and items owned

• cash and items not paid for

• expenses

• banks

Why would banks be hesitant to loan money to an individual?

• the bank inherents the risk

• the bank would be paid back with interest

• the individual is in a low risk situation

• the individual can come up with the money easliy

How to do calculate Equity?

• Equity / Liabilities = Assets

• Equity = Assets + Liabilities

• Equity + Assets = Liabilities

• Equity = Assets - Liabilities

What is the benefit of a business using a cash flow statement?

• they can spend as much as they want

• they can predict how much cash they will have in 5 years

• they will know how much cash is tied up

• they can easily make deposits using only cash