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WorksheetsPrivate Enterprise
Total questions: 15
Worksheet time: 8mins
A cash flow statement shows cash received from the following activities EXCEPT
investing
operating
computing
financing
The income statement, also known as the P&L Statement, shows all of the following EXCEPT
operating expenses
shareholder's equity
net profit
gross profit
In a _____ economic system the elders determine the answers to the 3 economic questions.
mixed
traditional
communal
centrally planned
Fill in the following equation: Profit = Revenue minus (a)
The three questions a economic system should answer are:
What should be produced?
Who should produce it?
For whom is it being produced?
How it should be produced?
True or False: The Balance Sheet should balance, unless you have taken out a loan.
True
False
What is the big difference between communism and socialism?
the economic systems are different
who can own property
how much government assistance is offered
who determines what should be produced
What is one form of business ownership that we discussed?
limited corporation
corporate ownership
general partnership
general limited liability partnership
In a market economy the economic system is governed by the law of ______
supply & demand
economics
needs v wants
private enterprise
You need to know the Cost of Goods Sold in order to calculate
gross profit
net profit
expenses
net expense
What is the distinguishing characteristic of Capitalism?
profit motive
property rights
government involvement
Shareholder equity = ______ minus ______
Net Assets; Gross Assets
Total Capital Investment; Total Expenses
Total Assets; Total Liability
In a command economy, the _____ answer all the economic questions.
government
elders
people
status quo
On a cash flow statement, financing activities detail _________.
cash flow that’s generated once the company delivers its regular goods or services
purchasing or selling assets
cash flow from both debt and equity financing
A balance sheet records _____, ____ and _____.
assets, liability & equity
expenses, gross profit, & net profit
revenue, profit, & equity
Cost of goods sold, equity, & liability
