Unsecured loans are made only to the bank’s most creditworthy customers.

Typically, only very small businesses use the cash method.

Changes in the economy can have a dramatic effect on the cash flow of a business.

If your bank statement balance is not the same as your check register balance, you should contact your bank immediately.

A commercial bank loan is an example of equity capital.

Equity-based crowdfunding is becoming an increasingly popular financing method for many entrepreneurs and small businesses.

Even if you do not have a solid business plan, most banks will give you an unsecured loan.

Banks are usually very willing to provide inventory financing.

Itemizing your startup costs is an important part of determining how much money you need to start your business.

A business MUST use the accrual method if it has sales of more than $5 million per year.

Ledgers separate transactions by type; journals separate transactions by account.

Businesses that earn profits must deposit income taxes on their profits every month into a special bank account that belongs to the government.

Some customers do not pay for the merchandise they purchase on credit. The amount a company will not receive from these customers is known as depreciation.

Some customers do not pay for the merchandise they purchase on credit. The amount a company will not receive from these customers is known as allowance for uncollectible accounts.

The income statement shows the business's revenues and expenses incurred over a period of time and the resulting profit or loss.

Loans that are backed by collateral are called

The money a company receives from its normal business operations is called

Fredrick writes a check to pay for her store’s monthly rent. This transaction should be recorded in the

An income statement can help a business owner do all of the following EXCEPT

What is a line of credit?

Which of the following financial statements best shows how much money you have available to pay your bills?

Which of the following is an example of a current asset?

What does the debt-to-equity ratio measure?

A list of people who receive salary or wage payments from a business is called a(n)

Things you own are referred to as your

Things you owe are referred to as your

Dana Collingwood obtained an SBA-guaranteed loan from her bank for $70,000 for her new business. The SBA guaranteed 75 percent of the loan. How much has the bank risked losing if Dana’s business fails?

You own a computer repair shop. You owe $35,000 to vendors; you have a ten-year bank loan of $40,000; your bank account balance is $17,000; you own inventory worth $67,000; you have $3,000 in accounts receivable; and fixed assets are $42,000. What are your total liabilities?

A business has the following financial information for the month:

Revenues: $17,000

Insurance: $950

Cost of goods: $3,550

Rent: $1,250

Supplies: $1,050

Utilities: $875

Salaries: $5,100

Taxes: $1,250

Find the gross profit.

You own a computer repair shop. You owe $35,000 to vendors; you have a ten-year bank loan of $40,000; your bank account balance is $17,000; you own inventory worth $67,000; you have $3,000 in accounts receivable; and fixed assets are $42,000. What is your owner’s equity?

A __________ is a financial statement that lists what a business owns, what it owes, and how much it is worth at a particular point in time.

Property that a borrower forfeits if he or she defaults on a loan is called __________.

A(n) __________ is any business activity that changes assets, liabilities, or net worth.

Accounting records of the transactions you make are called __________.

A(n) __________ statement describes the way cash flows into and out of your business over a period of time.

The difference between revenue and cost of goods sold is called __________.

__________ capital is money invested in a business in return for a share in the profits of the business.

__________ is the difference in what you own and what you owe.

__________ capital is money loaned to a business with the understanding that the money will be repaid, usually with interest.

What does CGS mean?

What is an example of a fixed asset?

______________________ are debts that are due to be paid in full in less than a year.

To calculate your net worth, you should prepare a pro forma financial statement.

What is another name for pro forma?

Before you can approach a lender or investor about financing your business, you must prepare all of the following except:

A high debt-to-equity ratio:

Venture capitalists are individuals or companies that

Unsecured loans are

A line of credit is:

If a business wants to make improvements to increase profits, it will usually get a

A bank may turn down a loan application for a new business because the entrepreneur

If cash receipts total more than cash disbursements, your business has:

If cash disbursements total more than cash receipts, your business has:

An income statement indicates

An income statement helps you do all of the following EXCEPT:

The assets, liabilities, and owner's equity of a business are shown on:

In the accounting equation, assets must always equal

Depreciation is included on a balance sheet to show that

A sales journal is used to record only: