Chapter 4 Quiz

A Balance Sheet is a

• Statement that shows your income

• cash flow statement

• statement that shows assets, liabilities, and net worth

• a statement that shows the balance in your checking account

Market value is represented by

• How much you want something to cost

• How much people in a given market are willing to pay for an item.

• It's the discounted value of an item.

• The value assigned by the Federal Government.

If A=P((1+RT), then solve for A, when P =25,000, R=10%, and T= 2 Years

• 35,000

• 20,000

• 32,500

• 30,000

Net Worth is the same as

Which investement is an IOU to the person purchasing the investment?

• Stocks

• Bonds

• Mutual Funds

• Commodities

What is the purpose of creating a budget?

• To assign a purpose to all your income

• To waste paper

• To determine your monthly income

• To help you establish better credit.

5. Financial statements include all of the following except:

• Income statement

• Balance Sheet

• Inventory list

• Cash flow statement

Kathy wants to know whether her boutique made or lost money this month. The financial document she should view is her:

• balance sheet

• income statement

• cash flow statement

• statement of owner’s equity

.A financial statement that reports assets, liabilities, and owner’s equity on a specific date.

• profit and loss statement

• cash flow

• balance sheet

• income statement

What investment represents a partial ownership of a company

• Stocks

• Bonds

• Mutual Funds

• Commodities