ENTR 302 - Supplement A

Vivienne wants to produce a report that measures her financial performance on a monthly basis. She wants to see sales and expense-related activities that result in profit or loss over a period of time. She is interested in producing which of the following statements?

• backlog

• revenue

• scorecard

• income

Arya wants to produce a financial report that shows the amounts the company owes, what it owns, including the shareholders’ stake at a particular date in time. What is she interested in creating?

• balance sheet

• bookings order

• accounts receivable sheet

• income statement

Karter is very busy and wants to produce a financial report that details the inflows and outflows of cash for his company over the last month. What is he interested in creating?

• shareholders statement

• cash flow statement

• entrepreneur’s scorecard

• accrued expenses report

Which financial statement expresses net income by subtracting the cost of goods sold and expenses subtracted from total revenue?

• balance sheet

• cash flow statement

• entrepreneur’s scorecard

• income statement

What does the balance sheet show?

• what the business owns and what the business owes

• only net worth

• current employee salaries

• shareholder deferred revenue

Which refers to assets that can be converted into cash within a year?

• cash flow

• current

• intangible

• deferred

Accounts ______ is the amount that customers owe to a company after receipt of items or services purchased.

• payable

• receivable

• deferred

• accrued

Filadelfia paid $500,000 for a company, $100,000 in excess of the book value. Filadelfia has ______.

• $100,000 of expenses

• $100,000 of intangible assets

• goodwill of $100,000

• debt of $100,000

When creating pro forma financial statements, which requires you to consider best, worst, and likely case scenarios?

• reasonableness test

• sensitivity analysis

• payables policy

• inventory policy

Jamal is very interested in managing his cash. Currently, he is calculating the number of days his company’s cash is tied up in the production and sales process. What is he calculating?

• income statement

• cash convention report

• cash conversion cycle

• compensation policy