WorksheetsBusiness Basics for PR review #1
Total questions: 10
Worksheet time: 3mins
What's the main responsibility of financial management?
To "cook the books"
To keep a company's balance sheet at 0
To ensure business assets earn a return higher than the cost of borrowing
Non-current assets are:
Long-term assets like property, plant and equipment
Assets like goodwill and brand reputation that are hard to put a $ figure on
Short-term assets like inventory and accounts receivable used int the day-to-day operations
Working capital accounts
Current assets are
Things like goodwill and brand reputation that are hard to put a $ value on
Short-term assets like inventory and accounts receivable used in day-to-day operations
Long-term assets like property, plant and equipment
Equity accounts
The following are considered intangible assets
Brand
Customer goodwill
Reputation
All of the above
Trade or accounts receivables are
Invoices for purchases or services provided that haven't been paid yet
Current assets
Part of a business's working capital accounts
All of the above
True or False: Liability accounts are comprised of both non-current (long-term) debt and current (short-term) debt
True
False
Equity is the value of what is owned by...
(a)
True or false: revenue refers to the gross amount a business earns from the sale of its products or services, whereas profit for the year is what's left when taxes and other expenses are subtracted from revenue
True
False
Where to PR Agencies' revenues come from?
Billable hours only
Client fees
Stellar PR work
Advertising
What types of things go into calculating client fees?
Billable hours
Hard costs like rent and utilities as well as administrative costs
Subscription costs for services like Meltwater
All of the above
