Question 1
2 out of 2 points
The statement of cash flow:
Question 2
2 out of 2 points
A pro forma financial statement means:
Question 3
2 out of 2 points
________ measure the financing supplied by the company’s
owners against that supplied by its creditors and serve as a gauge of the depth
of a company’s debt.
Question 4
2 out of 2 points
The break-even point occurs where:
.
Question 5
2 out of 2 points
What is the difference between price per unit and variable
cost per unit?
Question 6
2 out of 2 points
________ is/are the value of the owner’s investment in the
business.
Question 7
2 out of 2 points
A technique that allows the small business owner to perform
financial analysis by understanding the relationship between two accounting
elements is called:
Question 8
2 out of 2 points
A ratio greater than ________ days would indicate poor
collection procedures.
Question 9
2 out of 2 points
The profit and loss statement is also referred as the
________.
Question 10
2 out of 2 points
The ________ is built on the basic accounting equation:
Assets = Liabilities + Owner’s Equity.
Question 11
2 out of 2 points
________ tell whether or not the small business will be able
to meet its maturing obligations as they come due.
Question 12
2 out of 2 points
________ ratios tell whether or not the small company will be
able to meet its maturing obligations as they come due.
Question 13
2 out of 2 points
________ ratios measure the financing supplied by business
owners and that supplied by the firm’s creditors.
Question 14
2 out of 2 points
________ ratios help a business owner evaluate the company’s
performance and indicate how effectively the business employs its resources.
Question 15
2 out of 2 points
________ ratios indicate how efficiently the small firm is
being managed.
Question 16
2 out of 2 points
A bank account that technically never has funds in it but is
tied to another master account so that when checks are presented for payment
the master account is debited, permitting the company to use its own money
during the “float” period, is called a(n):
Question 17
2 out of 2 points
Exchanging goods and services for other goods and services,
or ________, is an effective way for a small business to conserve cash.
Question 18
2 out of 2 points
When investing surplus cash, the small business owner’s key
objectives should be:
Question 19
2 out of 2 points
________ is the money that moves through the business in a
continuous cycle.
Question 20
2 out of 2 points
The budgeting strategy that evaluates the necessity of every
item on the budget each year by starting with a zero in each budget category is
called:
Question 21
2 out of 2 points
The most important item on the balance sheet is:
Question 22
2 out of 2 points
Once a small business has established a firm written credit
policy and communicated it, the next step in building an effective credit
policy is to:
.
Question 23
2 out of 2 points
________ companies are most likely to suffer cash shortages.
Question 24
2 out of 2 points
________ is simply a “cash map” which shows the
amount and the timing of cash receipts and cash disbursements over time.
Question 25
2 out of 2 points
The first step to building a workable credit policy is:
Question 26
2 out of 2 points
Once a credit account becomes past due, a small business
owner should:
Question 27
2 out of 2 points
The “big three” of cash management include:
Question 28
2 out of 2 points
An important source of credit information that collects
information on small businesses that other reporting services ignore is:
Question 29
2 out of 2 points
The Fair Debt Collection Practices Act prohibits business
owners from:
Question 30
2 out of 2 points
When it comes to trade credit, the small business owner:
