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WorksheetsIntro to Entrepreneurship: Finance 101
Total questions: 16
Worksheet time: 48mins
The financial management of a firm deals with questions below, EXCEPT:
How much cash we have on hand
Are we making or losing money?
How efficiently are we utilizing our employees?
How does our net profits compare to industry averages?
(Check 4 boxes), What are the financial objectives of a firm?
Profitability
Stability
Liability
Efficiency
Liquidity
Why are financial statements important for one’s business?
To assess whether its financial objectives are being met
To optimize the strategy on how a company sell more products
To manage assets more efficiently
What is a Balance Sheet?
records all the revenues and expenses for the given period
snapshot of a company’s assets, liabilities, and owners’ equity at a specific point in time.
Summarizes the changes in a firm’s cash position
What is an Income Statement?
records all the revenues and expenses for the given period
snapshot of a company’s assets, liabilities, and owners’ equity at a specific point in time.
Summarizes the changes in a firm’s cash position
What is Cashflow Statement?
records all the revenues and expenses for the given period
snapshot of a company’s assets, liabilities, and owners’ equity at a specific point in time.
Summarizes the changes in a firm’s cash position
Here are the things that are measured in Ratio Analysis, EXCEPT
Return of Liability
Return on assets
Return on Equity
Debt percentage
(Check 2 boxes) What are the things included in a Financial Forecast ?
Sales Forecast
Cost of Sales Forecast
Credit Forecast
Debit Forecast
What is Account Payable?
Debt that needs to be paid
Payment which the company will receive from its customers who have purchased on credit
What is Account Receivable?
Debt that needs to be paid
Payment which the company will receive from its customers who have purchased on credit
What is the Profitability Ratio?
Amount of income earned versus the resource used
A measurement the extent to which a company can liquidate its assets
How do we calculate the rate of Return on Equity?
Net income : average total assets
Net income : net sales
Net income : average shareholder equity
What is the Liquidity Ratio?
Amount of income earned versus the resource used
A measurement the extent to which a company can liquidate its assets
What does Liability means?
obligations, debts, and things that take money from you
the value that would be returned to a company's shareholders if all of the assets were liquidated
a resource with economic value that a company own the expectation that it will provide a future benefit
What does Equity means?
obligations, debts, and things that take money from you
the value that would be returned to a company's shareholders if all of the assets were liquidated
a resource with economic value that a company own the expectation that it will provide a future benefit
What does Asset means?
obligations, debts, and things that take money from you
the value that would be returned to a company's shareholders if all of the assets were liquidated
a resource with economic value that a company own the expectation that it will provide a future benefit
