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Funding and Financial Statements - Ent.

Total questions: 14

Worksheet time: 6mins

Name
Class
Date
1.

The information in pro forma financial statements is based on...

a)

projections

b)

current interest rates

c)

your net worth

d)

financial data from the previous year

2.

Things of value that you own are classified as...

a)

interest rates

b)

liabilities

c)

benefits

d)

assets

3.

What is a liability?

a)

Something that you owe

b)

account receivables

c)

your family and friends

d)

Something of value that you own.

4.

You have assets totaling $10,000 and all of your debts total $13,000. What is your net worth

a)

$3

b)

$23,000

c)

$3000

d)

$-3000

5.

Which of the following is an example of debt financing a business?

a)

Selling shares of stock

b)

Borrowing money from your friend

c)

Collecting donations through a Go Fund Me

d)

claiming bankruptcy

6.

Select each option that could be a source of equity finanacing for a business.

a)

family and friends

b)

a loan

c)

venture capitalists

d)

personal contributions

7.

A secured loan...

a)

does not require collateral

b)

requires collateral

8.

An unsecured loan is based on good faith and has no collateral

a)

True

b)

False

9.

What could be a reason for being turned down for a business loan? (Select all that apply)

a)

you don't have a business plan

b)

you lack experience in running a business

c)

You were punctual and well dressed for your meeting with the lender.

d)

you have little to no personal investment in the business

10.

Having a loan guaranteed by the SBA increases your chances of receiving a loan from a financial institution.

a)

False

b)

True

11.

Having a large number of investors each put in a small amounts of money into a business through the web is known as...

a)

online shopping

b)

venture capitalism

c)

cash flow

d)

crowdfunding

12.

The financial statement that identifies all your revenue and expenses for a period of time and shows whether you made a profit or suffered a loss during that time

a)

profit report

b)

income statement

c)

balance sheet

d)

account receivables list

13.

What would be your owner's equity if your balance sheet on January 22 shows assets totaling $155,000 and your liabilities total $75,000?

a)

$80,000

b)

-$80,000

c)

$75,000

d)

$230,000

14.

The _ flow statement shows when money comes into or goes out of your business (the payment changes hands).

(a)