Entrepreneurship Review Chp 9

Which of the following would be considered a startup cost for a business?

• A utility bill

• Rent for the business

• Payroll

• A computer

True or False - You can approach friends and family for equity financing in your business?

• True

• False

What could be considered acceptable collateral for a secured loan of $30,000?

• An apartment you rent

• Your iphone

• A car you have paid off that is worth above $30,000

• A $5,000 home theatre system

Which of the following is not a reason that a bank may reject a loan application?

• business is a startup

• owner invested $30,000

• lack of a business plan

• lack of experience

Accounts Receivable that are collected by businesses are converted to what?

• Debt

• Cash

• Liability

• Expense

If your cash receipts are more than your cash disbursements do you have a positive or negative cash flow?

• Positive
• Negative

• Zero

Which of the following would not be included on a cash flow statement?

• sale to a customer on account

• payment received from a customer on account

• payment made to a vendor for new equipment

• funds of $4,000 received from a bank loan

Loans that are guaranteed with property are

• Secured loans

• Unsecured loans

• Equity Financing

In which of the following journals would you record a sale of merchandise if the customer pays you cash at the time of the sale?

• sales journal

• cash payments journal

• cash receipts journal

• purchases journal

True or False: Taxes that you withhold from employees' paychecks are deposited into your bank account until the employee files an income tax return.

• True

• False