Entrepreneurship Ch9 Plan and Track Your Finances Quiz

Match the Financial Terms:

• Amounts on credit owed to business

• Payroll

• Difference between assets & liabilities

• Transactions

• business changes to assets and liabilite

• Equity capital

• Money invested in business for shares

• Net Worth (Owner’s Equity)

• list of salary people for business

• Accounts Receivable

Which of the following would be a startup cost?

• a. computer for a business

• b. monthly utility bill

• c. monthly rent expense

• d. weekly payroll

You have decided to try to finance your business with equity financing. Whom should you approach to invest in your business?

• a. local bank

• b. Small Business Administration (SBA)

• c. friends and family

• d. Department of Housing and Urban Development (HUD)

Which of the following would most likely be accepted as collateral for a secured loan of $25,000?

• 
  a. $32,000 automobile that is paid for

• b. $12,000 of home equity

• c. $2,500 computer system

• d. apartment that you rent

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

• a. business is a startup

• b. owner invested $30,000

• c. lack of a business plan

• d. lack of experience

Accounts receivable payments that are collected by businesses are converted to cash.

• True

• False

If your cash receipts are less than your cash disbursements, your business has a negative cash flow.

• True

• False

1. Loans that are guaranteed with property are called

• 1. Secured loans

• 1. Unsecured loans

• Equity Financing

• Family Loans

1. 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?

• a. sales journal

• b. cash payments journal

• c. cash receipts journal

• d. purchases journal

1. A potential investor or bank would want to see all of the following financial documents except

• a. cash flow statement

• b. startup costs

• c. . personal financial statement

• d. journal