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WorksheetsUnit 6 Business Finance
Total questions: 10
Worksheet time: 5mins
An example of a liquid asset is
Inventory
Real estate
Money in the bank
A piece of equipment
GAAP can be described as
standards that are written and regulated by the government
legally required that all companies meet GAAP standards
Companies that meet GAAP standards usually use cash basis accounting
GAAP recommends accrual basis accounting
Regarding accounting equations, assets are equal to two things
Debits + equity
Debits + accounts
Liabilities + equity
Liabilities + accounts
The costs of running a business are called
Startup costs
Cash flow
Operating expenses
Fixed costs
If you wanted to make sure a company has enough money available to pay its bills, which financial statement would be most helpful?
Balance sheet
Income statement
Statement of owners' equity
Cash flow statement
If you want to know whether a company had a profit or a loss during a specific period of time, which financial statement would be most helpful?
Statement of owners' equity
Cash flow statement
Balance sheet
Income statement
If your company uses accrual basis accounting, what do you need to pay special attention to?
Money the company owes
Money that is owed to the company
Cash flow
Revenue
An example of a tip that can hurt your cash flow is
Increase your sales
Pay your bills early
Keep a cash reserve
Offer credit only to low risk borrowers
An opportunity cost of an investment is
The combined values of the other opportunities available
The value of the next most valuable opportunity
The marginal benefit of the investment
The volatility of the investment
A type of liability would be
A revenue stream
A liquid asset
Accounts payable
Accounts receivable
