WorksheetsIC3 Review Part 2
Total questions: 27
Worksheet time: 14mins
A company’s financial statements are public due to:
Stock Purchases
Companies are public entities
Government regulations
All the above
The executive summary is a particularly important part of the business plan for all the following reasons EXCEPT
it is the first part of the business plan those interested in the business will read.
it determines whether or not interested parties will learn more about your business.
it details where the funding for the business will come from.
it creates the first impression of your business.
If a business is losing money, which of the options below will NOT help increase profit.
Decrease Expenses
Complete a Break Even Analysis
Provide more discounts
Increase prices
The owner of Family Pizza is selling their old stove this is an example of:
Cash Inflow
Cash Outflow
Company Investment
All the above
When businessess invest in other businesses, they are hoping to generate which of the following?
Passive Income
Liability
Fixed expenses
new customers
The duties of human resources incluse all teh following EXCEPT
hiring
professional development
setting up employee emails
disciplining employees
What is the biggest disadvantage of borrowing money from a family member?
It will lessen the chances of getting a loan from a bank.
The interest rates tend to be higher among friends and family.
If expectations are not clear, relationships can be damaged.
All of the above
A business plan is helpful for which of the following reasons?
It helps a business set future goals.
It sets a course of action that cannot be changed
It can take the place of an accountant.
t takes a long time to produce.
What is the difference between a marketing strategy and a marketing plan?
There is no difference between a marketing strategy and a marketing plan.
A marketing plan is written first and forms the basis of the marketing strategy.
A marketing strategy tells where a business wants to go and the marketing plan tells how to get there.
A marketing strategy is rather flexible, but a marketing plan should not be revised once it has been created.
Revenue minus Cost of Goods Sold equal _________________.
Gross Profit
Taxes
Operating Expense
All the above
. For the month of November a new business had more Accounts Payable than Accounts Receivable, which statement is not true about this scenario?
The business owner did not sell enough products to see a profit.
The owner needs to review his break -even analysis
The Business owner had a gain in profits.
The Business owner experienced an income loss this month.
. A Business comparing historical financial information between 2 reporting periods is.
Vertical Analys
Horizontal Analysis
Break Even Analysis
All of the above
Rashad is the owner of Kickin’ Chicken restaurant, and he is reviewing the October Income Statement. He notices that his expenses are higher than his total revenue. What information can Rashad gather from his income statement?
Kickin’ Chicken experienced a loss in profit
Kickin’ Chicken experienced a gain in profit
Kickin’ Chicken experienced a break-even threshold point
All the above
Which of the following has the steps of the hiring process in the correct order?
job description, interview, recruitment
recruitment, interview, offer
offer, second interview, skills testing
skills testing, offer, interview
If a Business has more assets than liabilities, the business will have what type of Net Profit?
Positive Net Profit
Negative Net Profit
Break Even Net Profit
None of the Above
. Which of the following is the advantage of cash-based accounting?
It is more accurate than accrual accounting.
It documents exactly how much cash is available.
It fails to take different kinds of credit into account.
It requires a professional accountant to manage it.
Why are accounts receivable considered assets even if the money has not yet been paid to the business?
Accounts receivable are assets.
Businesses can count potential income as assets.
Any money coming into a business is an asset.
All the above.
32. Which of the following is the advantage of cash-based accounting?
It is more accurate than accrual accounting.
It documents exactly how much cash is available.
It fails to take different kinds of credit into account.
It requires a professional accountant to manage it.
Why are accounts receivable considered assets even if the money has not yet been paid to the business?
Accounts receivable are assets.
Businesses can count potential income as assets.
Any money coming into a business is an asset
All the above.
A business paying rent is an example of what type of expense.
Government Bill
Variable Expense
Revenue
Fixed Expense
A ________________________ is an investor who provides capital to firms that exhibit high growth potential in exchange for an equity stake(ownership).
Venture Capitalist
Angel Investor
Government Funding
Banks
Initial Funding used to create a business is:
Seed Money
Passive Income
Operating Expense
All the above
Why is a profit and loss statement useful for a business?
It determines what kind of accounting a business should use.
It does not take the businesses assets into account.
Businesses cannot track expenses without one.
It consolidates essential information about the business.
Examples of a business assets are
Cash, bank accounts, real estate, stocks
Accounts payable, Car Note, Loan Payments
Taxes, Rent, Mortgage, Utilities
None of the above
Personal Finance Statement is
Summary of your current personal financial condition
W2 Form
1099 Form
The business income statement
Efficiently managing the purchasing cycle is important because
Unused inventory takes away from a business profit
Once established it will require few changes
The needs of most businesses stay constant over the course of a year
It helps set expectations about how often the customer will need the business.
The Balance sheet will always __________?
Balance
Not Balance
Assets must be higher than liabilities
None of the above
